This study challenges the applicability of Western organizational models to state-owned enterprises (SOEs) in the Global South. By distinguishing politically determined “fixed constraints” from the managerial “actionable core,” and based on survey responses from senior managers and archival data of 27 provincial SOEs in western China, we employ fuzzy-set Qualitative Comparative Analysis (fsQCA) to identify configurational drivers of performance. Results reveal two high-performance pathways, function-oriented and market-oriented, both achieved through context-dependent “functional synergy.” Across all successful configurations, strategy and performance management form the minimal viable foundation. Conversely, the absence of performance management is a core condition for failure. These findings suggest that effective SOE governance relies not on comprehensive organizational redesign, but on a closed-loop system where performance management serves as an indispensable safeguard against organizational drift.
Yang et al. (Wed,) studied this question.