Should Chinese new technology SMEs remain independent in overseas markets?

Abstract

Purpose

Chinese new small‐ and medium‐sized technology enterprises face an important strategic decision when they operate in overseas markets. That is, should they remain independent? Independent small‐ and medium‐sized enterprises (SMEs) rely on their own internal resources while dependent SMEs resort to external resources through partnerships. The paper aims to evaluate various market contexts in which one strategy is preferred to the other.

Design/methodology/approach

Hypotheses developed from the literature review are tested with the quantitative data which were collected through questionnaires.

Findings

This paper assesses Chinese new technology SMEs' market environments and their internal resources. Findings from this paper suggest that different market contexts and different internal resources lead to different strategies.

Originality/value

This paper makes contributions to existing studies on two fronts. First, it investigates Chinese new technology SMEs' performance in the overseas market. Chinese new technology SMEs have been a new phenomenon in the world market and few studies have been reported on these firms' strategies and performance. Second, this paper assesses SMEs' strategic option of independence and dependence against the background of high‐tech industries which require heavy R&D investments and have been highly risky and uncertain.

Citation

Tao, S.X., Li, L. and Qian, G. (2010), "Should Chinese new technology SMEs remain independent in overseas markets?", Journal of Chinese Entrepreneurship, Vol. 2 No. 3, pp. 255-269. https://doi.org/10.1108/17561391011078749