THE CHINESE STATE ENTERPRISE: OPERATING IN A NON‐MARKET ECONOMY

The exogenous factors influencing state enterprise managerial decision making in the People's Republic of China are identified. These environmental forces are categorized as governmental and sociocultural in nature. Governmental influences are the centralized management of the economy, the dual command structure found in the Chinese state enterprises, state enterprise financing, product quality, and state enterprise production quotas. Sociocultural influences are morality, deference to authority, risk avoidance, long term view, community versus individual orientation and the legal system.