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Product Quality Orientation and Its Performance Implications in Chinese State-Owned Enterprises

The authors model the performance implications of product quality orientation in Chinese state-owned enterprises and test the implications on a sample of 205 state-owned enterprises. The results show that product quality orientation has a positive impact on performance. This association is moderated by environmental uncertainty: The greater the perceived technological turbulence, the stronger is the relationship of product quality orientation to performance; the greater the perceived market dynamism, the weaker is the relationship. The results also show that the level of product quality orientation is lessened by perceived technological turbulence but enhanced by production routineness. Finally, state-owned enterprise performance is influenced inversely by perceived market dynamism but influenced positively by perceived technological turbulence.