The effect of state ownership on strategic entrepreneurship in China

Entrepreneurs constitute a key economic driving force for many emerging economies. In this paper, we explore how state ownership affects strategic entrepreneurship in firms. We present an institutional theory that explains the modulating impact of state ownership on entrepreneurship. We test these hypotheses using a sample of 466 public companies in China from 2000-2006. This paper directs attention to the primary influence of traditional institutions in emerging economies on strategic entrepreneurship and highlights the need for governments to make institutional changes that will aid in the emergence and growth of entrepreneurial organizations.