Cronyism from the perspective of the firm: A cross-national assessment of nonmarket strategy

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© 2017, Fayetteville State University. All rights reserved. Nonmarket strategy (NMS) refers to any part of a firm’s strategy that seeks to generate superior performance through means not directly associated with market activity. This paper investigates links among environmental uncertainty, strategic capabilities, competitive (market) strategy, NMS, and organizational performance in China, Ghana, Turkey, and the United States. Findings suggest that firms in relatively weak competitive positions are more likely to emphasize NMS. In China, Ghana, and Turkey, composite models suggest that competitive uncertainty drives NMS, but that only competitive strategies-not NMS-drive performance. In the United States, NMS appears to be driven by both competitive and technological uncertainties, while also driving performance. Unlike their counterparts in China, Ghana, and Turkey, American firms appear to emphasize NMS as a response to environmental uncertainty and engender stronger performance as a result.

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Journal of Private Enterprise

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