Firm performance

Product market competition and firm performance: firm survival through innovation and entrepreneurial orientation in the context of the COVID-19 financial crisis

This article was originally published here

Before Psychol. 2022 Mar 25;12:790923. doi: 10.3389/fpsyg.2021.790923. eCollection 2021.

ABSTRACT

Product market competition has become a global challenge for business organizations in the tough and competitive market environment of the influx of the COVID-19 outbreak. The influence of product competition on organizational performance in developed economies has attracted the attention of researchers and numerous studies have explored its impacts on firm profitability. Existing studies point to mixed results between the link between CSR practices and healthier performance of Chinese business enterprises in emerging economies; however, the current global crisis due to the coronavirus has made product market completion fierce, which ultimately affects business performance. This study focuses on this logical global challenge, examines the rationale for it, and examines the impact of product market completion on the performance of companies operating in Chinese markets. The study gathered data from the annual reports of Chinese trading organizations listed in A-shares and registered in the China Stock Markets and Accounting Research (CSMAR) database. The study used a generalized method technique of the moment and investigated the link between product market competition and the performance of Chinese enterprises. The empirical analysis of this study highlights the conclusion that market competition positively and significantly affects the performance of business enterprises. This study clarified that product market competition plays a dynamic and indispensable role in achieving healthier business performance in Chinese markets. This study provides valuable insights into practical implications and future research directions for researchers to derive interesting results with new study designs.

PMID:35411208 | PMC: PMC8993680 | DOI:10.3389/fpsyg.2021.790923