Competing in a Rapidly Changing World: Elements and Models of an Adaptive Chinese Organization

Abstract

China is attracting increasing attention because of its rapidly emerging economy. With development becoming increasingly sophisticated, the business environment in China is going through a transformational stage. Organizations in China have to be able to adjust to social, economic, cultural and technical changes by being adaptive. Adaptive organizations have been studied for some time, with investigations stemming from research on organizational change, organizational learning and complex adaptive systems. According to the literature, adaptive organizations maintain competitive advantage by adjusting their strategies, organizational structures, business processes and information systems. This paper focuses on a textile manufacturer in China. A case study approach is used to address how a manufacturing organization adapts in the Chinese business environment and to determine the key elements of adaptive organizations. Company strategy, leadership, networks, capability, communication and external environment were found to be the six key elements that enable the manufacturer to be adaptive. Interestingly, the evidence from the case study indicated that agility was not critically important to an adaptive manufacturer in the Chinese textile industry. It was found that the external environment significantly hinders adaptive behaviors, and that government policies play an important role in this. Interdependent relationships among the six key elements are illustrated using a series of structural and behavioral models.