Study On Theimpact Of Performance Expectation Gap On Corporate Strategic Orientation

Performance is an important indicator of business success.When a company falls short of performance expectations,managers must take actions to stop further decline in performance and restore growth as soon as possible,based on the requirements of sustainable management.Corporate strategy,as an important action plan and development direction,is an important guide for corporate development.When a company is in a situation where performance expectations fall short,obviously,it is essential to choose the right strategic plan for the company’s business activities,especially when the strategic plan is asked not to be too conservative and miss the opportunity,but not to be too aggressive and lead to unbearable risks.Therefore,the research concentrates on the impact of the state of performance expectation fallout on the strategic orientation of enterprises,further explores the issue of strategic propensity at the scale level,and explores the possible boundary conditions.This study selects domestic A-share listed enterprises during 2011-2020 as the research sample source,empirically analyzes the influence mechanism of performance expectation gap on the strategic orientation of enterprises,and selects four situational factors from internal and external environments: the nature of property rights,enterprise risk-taking ability,economic policy uncertainty,and the degree of industry competition,to analyze the moderating effects.The results show that when performance falls short of expectations,firms tend to prefer offensive strategies to break through,while as the performance expectation gap widens,firms tend to adopt conservative and defensive strategies.At the same level,non-state firms and firms with higher risk-taking capacity tend to be more offensive,while firms with greater economic policy uncertainty and weaker industry competition tend to be more defensive.This study presents a theoretical model which describes the relationship between the performance expectation gap and strategic orientation,which provides practical guidance and empirical evidence for firms to develop strategic plans and help them promote better growth in the future.