This study is an integrative model
developed to test contingency theories that
link environmental conditions, competitive
strategy, and organization performance. The
modified operational items and modified
constructed variables based on Dess and
Davis (1984: 467-488) and Miller (1988: 280-
308) and on Porterûs (1980: 322-329) generic
competitive strategies. To include differentiationbased
strategies as suggested by Miller
(1988: 288) and Mintzberg (1988: 23) is
generalized to innovative marketing strategies
and innovative product differentiations that
suit business atmosphere of both local
and foreign rivals. The interrelationships
between a new venture firm and local are
bilateral and independent. When firms constitute
the primary source of revenue for local
governments, they also receive immense
governmental assistance in financing,
resource access, risk diversification, and the
like (Nee, 1992: 1-27). These characteristics
are confirmed by the pre-interview results;
therefore, political interaction with the
government sector is included in this study
as another important competitive strategy.
The integrated alignment model shown in
figure 1 incorporates environment hostility,
competitive strategy, and firmsû performance.