Institutional Risk and Strategic Adaptation: A Mixed Methods Based Study of Marketing Strategies Performance of Chinese Firms in Russia and Central Asia.

Abstract

Institutional volatility continues to determine the international expansion results of firms operating in the developing and transitional markets. Chinese enterprises in Russia and Central Asia are exposed to a variety of complicated formal and informal institutional risks, ranging from regulatory uncertainty and political instability, to network governance structures that affect market involvement and performance. This study examines the impact of institutional risk perceptions on strategic adaptation and marketing strategy performance of the Chinese firms in these regions. Based on institutional theory and strategic adaptation, a mixed-method approach combining survey findings and qualitative insights has been used to investigate the fit between environmental pressures and firm reactions. The analysis takes into consideration the mediated effect of relational capital, alliance formation and adaptive marketing configurations in appreciating performance outcomes under institutional constraints. Past research emphasizes the importance of institutional transitions in emerging markets that shape strategic choice and network behaviour that affects entry positioning as well as the adaptation of operations. Moreover, strategic flexibility and market-oriented adaptation are related with a better performance resilience under uncertainty (Grewal & Tansuhaj, 2001; Zeriti et al., 2014). The findings are anticipated to advance the knowledge about cross-border institutional complexity by linking risk perception to marketing execution outcome by providing both theoretical refinement as well as practical insight for firms in the process of conquering uncertain institutional landscapes.