Abstract Based on the measurement of capital operation and identification of competitive strategy,this paper puts capital operation into the framework of “competitive strategy-firm performance” analysis, and investigates the moderating effect of capital operation on competitive strategy to improve firm performance. Based on the sample of A-share listed companies from 2008 to 2017, this paper finds that the implementation of low-cost and differentiation strategy can significantly improve firm performance, while the capital operation can significantly promote the improvement of the two competitive strategies to the firm performance, and the effect is stronger in low-cost strategic firms. Combined with the driving factors of competitive strategy, it is found that in low-cost strategic firms, capital operation can improve firm performance by easing financing constraints and improving learning ability, while in differentiation strategic firms, only the path of easing financing constraints is verified. This study incorporates the capital allocation theory into the analytical framework of competitive strategic management which is conducive to guiding firms to establish competitive advantages by improving capital allocation efficiency.
2021, Vol. 38 
