Spurious competitiveness firms usually denote the companies which deviate from fairness, integrity, responsibility and the law (non-efficiency and non-innovation), and excessively rely on external conditions and resources to seek temporary benefits. At present, spurious competitiveness issue has made a lot of Chinese companies get into trouble. However, at the meantime, domestic and overseas research on spurious competitiveness is almost blank. Firstly, this paper introduces the concept connotation and essential characteristics of spurious competitiveness. Secondly, it analyzes its formation and adverse consequences. Finally, it discusses the governance mechanism and transformation strategy for spurious competitiveness. The essence of enterprise competitiveness should be the capabilities to create more value for consumers through innovation promotion and efficiency improvement under the premise of credit. Only through transformation and upgrading to achieve genuine competitiveness resulting from genetic reengineering, these spurious competitiveness companies can survive and obtain sustainable development in the future in current highly complex and turbulent market environment. It makes great contributions to the promotion of deep understanding of spurious competitiveness companies, and makes potential research directions to provide reference for follow-up research and governance transformation practice of spurious competitiveness companies.