Second, privatized firms may achieve higher financial performance because the strategic
changes they make, such as changing suppliers, adding new more efficient technology, or
changing prices, may not be acceptable alternatives from the State‘s perspective (Whitley
and Czaban (1998)).
Strategic contingency theory also suggests that strategic orientation influences financial
performance such that, in competitive markets, firms that use more aggressive strategies
are more likely to be financially successful (Prescott (1986)). Hence, strategic contingency
theory and stakeholder theory suggest that: