Organisational performance: a study of China's large construction state-owned enterprises

China's construction state-owned enterprises (SOEs) remain tormented by impotent long-term competitiveness and lack of knowledge about how to adapt to the market economy environment. This study investigates the interaction between firms' external environment, internal resources and competences, and organisational performance. By combining industrial/organisational theory and the resource-based view, this research explores the relations between large construction SOEs and their organisational performance under evolving environmental factors. The study uses structural equations modelling of questionnaire survey data to analyse the inter-relationships of the external environment and organisations' resources and competences. Internal resources and competences are important in determining SOEs' organisational performance.