Institutional Environment、Entrepreneurial Capital And Enterprise Strategic Choice

During the period of China’s economic transition, when the entrepreneurs made thestrategic choices, they not only considered their own resources-human capital and socialcapital, but also take the differences in the outer region of the institutional environment intoaccount, because private enterprises were affected by market segmentation and institutionalfactors behind them. Private entrepreneurs stepped into the mystery of strategy: whether theyshould choose the red strategy that focus on the market or gray strategy using the loopholes ofthe relationship and the system.On the basis of the literature, this paper constructed a theoretical model and maderelevant propositions and inference about the relations among system environment、capitalbetween private entrepreneurs and corporate strategy. In the regions of high degree ofmarketization and lower government intervention, the market is showing a characteristic ofhigh human capital, and entrepreneurs prefer to choose red strategy. As for the regions thathave low degree of marketization and higher government intervention, they lay particularstress on selection and implementation of gray strategy because of usefulness of high socialcapital. Thus, based on the viewing angle of integration of systems-based, resource-based andindustry-based, this study discussed the effect of different entrepreneurial capital forentrepreneurs’ strategic options, and found that compared with resource basis and industrybasis, systems basis better explained the concept of strategic behavior of private enterprises.And using the sample of empirical research, exploring the mechanisms and processes that areeffected on entrepreneurs’ capital utility play and strategic options by differences aboutsystem environment and market segmentation.This research is an attempt for theoretical transitional period of China’s unique situation,trying to clarify the relationship between the entrepreneurial capital and corporate strategicchoice that are influenced by the institutional environment, in order to effectively promote therational use of human capital、social capital and efficient allocation of resources as providingreference for corporate strategy selection process. This attempt has significance for privateentrepreneurs to get rid of the strategic lost.