Song Lin and Philippe Lasserre
This special issue of Chinese Management Studies aims to focus on entrepreneurship in China by addressing a variety of topics. The purpose is to provide some insights for…
Abstract
Purpose
This special issue of Chinese Management Studies aims to focus on entrepreneurship in China by addressing a variety of topics. The purpose is to provide some insights for entrepreneurship research based on the context of China as a representative emerging economy.
Design/methodology/approach
Review and reflection.
Findings
The research presented in the eight articles that constitute this special issue concern different topics, including entrepreneurship in the Chinese historical context, entrepreneurship in the context of networks and relationships and entrepreneurship in specialized industries. These articles provide valuable contributions to theory construction in entrepreneurship research for emerging economies, not just for enterprises in China but also for people and ventures around the world.
Research limitations/implications
Developing an indigenous understanding of the opportunity for entrepreneurship research in an emerging economy such as China, we would argue, is only the beginning for the research work based on the historical context, networks and relationships, and specialized industries that could boom in the wide open workspaces of the developing world.
Originality/value
The studies published here provide valuable contributions to theory construction in entrepreneurship research, as well as some basic ideas for concept definition and structural comparison in entrepreneurship research in other different domains.
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Yiyuan Mai, Chan Xiong and Xiaobin He
This study aims to examine, by drawing upon resource dependence theory and upper echelon theory, how entrepreneurs’ socioeconomic statuses and political characteristics influence…
Abstract
Purpose
This study aims to examine, by drawing upon resource dependence theory and upper echelon theory, how entrepreneurs’ socioeconomic statuses and political characteristics influence the establishment of formal political ties by new ventures, and how these relationships are moderated by new ventures’ degrees of innovation and internationalization.
Design/methodology/approach
An empirical research approach is used in this paper. This is because this model evaluates the interaction effects between the socioeconomic statuses and political characteristics of entrepreneurs and the market strategies of their new ventures. Moderated multiple regression models were used to test our hypotheses with data from 2,297 new ventures in China.
Findings
Using a questionnaire survey about new ventures in China, it was found that entrepreneurs’ socioeconomic statuses and political characteristics are positively related to the establishment of formal political ties by new ventures. It was also found that this positive relationship is stronger when new ventures have a higher degree of internationalization, while the relationship between the socioeconomic statuses of entrepreneurs’ and the establishment of formal political ties by new ventures is weaker when new ventures have a higher degree of innovation.
Research limitations/implications
This research provides a deeper insight into the personal roles that are played in the establishment of formal political ties and it advances the research into new ventures’ competitive strategies.
Practical implications
This study reveals the situations in which formal political ties are connected with new-venture advantages in China, and it will help entrepreneurs establish and use formal political ties strategically to correspond with the different strategies of new ventures.
Originality/value
This research distinguishes the effects of two types of personal status on the establishment of formal political ties by new ventures, and it contributes to an understanding of the situations under which entrepreneurs should establish formal political ties. The findings will also be helpful for entrepreneurs who are choosing how to combine their market and non-market strategies.
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Song Lin, Edward G. Rogoff, Check-Teck Foo and Xiaoyuan Liu
This empirical study aims to test the impact of four types of entrepreneurial context on the growth and success rates of new ventures in China and related the findings to the…
Abstract
Purpose
This empirical study aims to test the impact of four types of entrepreneurial context on the growth and success rates of new ventures in China and related the findings to the theory and practice of entrepreneurship dating back 2,500 years to ancient China.
Design/methodology/approach
After describing the business guidelines given by Fan Li, an entrepreneurial merchant selling Chinese medicines in ancient times, a conceptual framework was extracted as the basis for a discussion of the relationship between entrepreneurial context and entrepreneurial activity. Entrepreneurial context was conceptualized as being composed of family, social, business and institutional components. Five hypotheses about the influence of these different context variables on entrepreneurial activities were developed. From data compiled from the sampling of 239 business entrepreneurs in Beijing, a hierarchical regression was formed and the hypotheses tested.
Findings
The impact of entrepreneurial context on entrepreneurial activity can be divided into two layers, internal factors (e.g. family context) which are similar to “yin” (?) in the traditional Chinese philosophy while external factors (e.g. business, social and institutional contexts) were like “yang” (?). The two factors play different roles in entrepreneurial activities, while different contexts mediate and moderate each other in complex ways.
Research limitations/implications
Research limitations pertain to the size and locale of the sample. A larger sample that involved subjects from different regions would facilitate a wider understanding of the effects of entrepreneurial context upon the entrepreneurial process.
Originality/value
The theory of entrepreneurial context is in its beginning stages, and the paper completed a systematic study of entrepreneurial context through theoretical model building using large-sample empirical research. In addition, the paper is the first ever to relate the theory and practice of entrepreneurship back 2,500 years. Through a multi-research methodology, the study clearly shows the critical importance of integrating Chinese history into the development of management theory.
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Xiaohua Su, Haidong Peng, Shujun Zhang and Yun Rong
– The purpose of this paper is to explore the legitimacy needs and legitimation strategies of Internet start-ups in the context of industry dynamism.
Abstract
Purpose
The purpose of this paper is to explore the legitimacy needs and legitimation strategies of Internet start-ups in the context of industry dynamism.
Design/methodology/approach
The purpose of this paper is to explore the legitimacy needs and legitimation strategies of Internet start-ups in the context of industry dynamism.
Findings
The authors found that Internet start-ups are in great need of acquiring market and relational legitimacy at their nascent stages. Conformance to the environment is widely adopted by them as a legitimacy-enhancing strategy. There is an inverted “U” relationship between the maturity of the industry and the proactivity of any legitimation strategy in the sector. In the face of high- and low-level industry maturity, start-ups tend to employ prudent strategies to build up legitimacy. While in medium-mature industries, ventures are more likely to adopt proactive and aggressive strategies.
Research limitations/implications
Due to the very nature of case methodology, this study is based on a small number of observations and it is set in the context of the Internet industry. The generalizability of its findings needs to be reinforced by further concrete studies.
Practical implications
This paper suggests that industry dynamism should be taken into account carefully when implementing a choice of legitimation strategies.
Originality/value
This study makes an attempt to further our understanding of how industry dynamism influences firms’ choices of legitimation strategies.
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The purpose of this paper is to investigate the effects of cultural beliefs on governance in a business network without a legal institutional framework. Particular emphasis is…
Abstract
Purpose
The purpose of this paper is to investigate the effects of cultural beliefs on governance in a business network without a legal institutional framework. Particular emphasis is placed on the cross-country remittance mail operating network in Chaoshan, China, during the period 1860-1949. This investigation builds on Greif’s business governance theory and develops an analytical framework that considers cultural beliefs, agency relationships and multilateral punishment mechanisms. Furthermore, it uses the institutional analysis method to identify the institutional factors that sustained the remittance mail operating networks and their underlying mechanisms.
Design/methodology/approach
This paper adopts the qualitative research method. First, it investigates the history of the remittance mail operating network and agency relationships by searching through the contents of the relevant historical documents preserved in the official archives and information found in other records. Thereafter, it summarizes and demonstrates the cultural beliefs inferred from that research. The archival materials permit analysis of the interactions between cultural beliefs, agency relationships and multilateral punishment mechanisms by the institutional analysis method.
Findings
Due to the lack of legal institutions in China during the period under review, cultural beliefs played a central institutional role in cross-country business relations. Network governance was coupled with clan cultural beliefs in the remittance mail operating network. This relationship was the key to sustain the efficient operation of the remittance mail network.
Originality/value
In the West, corporate governance has been influenced by and has become an integral feature of Western culture and values. This is not necessarily so for the corporate governance in terms of Chinese culture and values. Thus, instead of mimicking the modes of developed countries, it is important for Chinese enterprises to seek a mode of corporate governance that is in accord with their local cultures. This may be an important focus for enterprise development.
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This paper aims to examine the possible benefits and effects of shared vision and integration on entrepreneurial management for new Chinese ventures. By examining new enterprises…
Abstract
Purpose
This paper aims to examine the possible benefits and effects of shared vision and integration on entrepreneurial management for new Chinese ventures. By examining new enterprises, rather than already established and operating firms, this study can better demonstrate the impact of shared vision and internal or external integration on entrepreneurial performance. The empirical analyses demonstrate the importance of shared vision and both types of integration for new ventures, particularly enterprises in China.
Design/methodology/approach
This study collected data from firms in Greater China, including China, Taiwan and Hong Kong. Five hypotheses were tested, for which the total sample size was 246 respondents. Confirmatory factor analysis and structural equation modeling were applied for statistical analyses.
Findings
The results indicate that entrepreneurial vision correlates positively with shared vision. In its turn, shared vision correlates positively with internal integration and external integration. Furthermore, internal integration correlates positively with entrepreneurial performance. Although external integration is essential during new enterprise establishment, analytical results indicate that external integration is not strongly correlated with entrepreneurial performance.
Practical implications
Shared vision plays a critical role in the integration process during the establishment of new enterprises. The results of this study show that newly established firms need to put more efforts than do operating firms into integrating external resources.
Originality
/
value
This study contributes to a better understanding of the effects of shared vision and the different kinds of integration on entrepreneurial management. Knowing the driving forces behind these phenomena may help new firms to engage more actively in resources integration and enhance their entrepreneurial performance.
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Yongji Xue and Xinyu Liu
The purposes of this paper are to explore how the cluster entrepreneurship of peasant households in the Chinese forest zone develops, and to analyze how the influence of kinship…
Abstract
Purpose
The purposes of this paper are to explore how the cluster entrepreneurship of peasant households in the Chinese forest zone develops, and to analyze how the influence of kinship and geopolitical relations can effectively construct a mechanism for the growth of cluster entrepreneurship.
Design/methodology/approach
The case study method was chosen to analyze the growth process of this cluster entrepreneurship (e.g. raising chickens in Zhenghe, planting tea in Anxi and cultivating fruit in Taizhou).
Findings
The authors found that the trust, learning and driving mechanisms of cluster entrepreneurship were influenced by kinship and geopolitical relationships, and were included in the building of the growth mechanism of such cluster entrepreneurship, as has emerged. Further, in the building of this evolution mechanism, three paths of growth were found: financial support, the introduction of technology and the introduction of management.
Originality/value
This paper enriches the understanding of how cluster entrepreneurship develops in the socioeconomic environment of the Chinese forest zone, with particular reference to kinship and geopolitical relations, and how these contribute to the growth mechanism of cluster entrepreneurship, which is important for the management of entrepreneurial activities in that habitat.
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Cecil A. L. Pearson and Lynette Tang Yin Hui
This study assessed the relevance of Vroom’s expectancy motivational framework in a cross-cultural context. Differences in attitudes for task investment, preferences for work…
Abstract
This study assessed the relevance of Vroom’s expectancy motivational framework in a cross-cultural context. Differences in attitudes for task investment, preferences for work related achievements, and the reward potential of outcomes was assessedwith Australians and Malaysians who were employed in similar work contexts of the beauty care industry. Reasons why the Australian employees reported significantly higher job motivation than the Malaysian respondents were identified by examining the three main components of expectancy, instrumentality and valence, of Vroom’s framework. The study findings are discussed in terms of the implications they have for the necessary organizational development with Australians and Malaysians who were employed in similar work contexts of the beauty care industry. Reasons why the Australian employees reported significantly higher job motivation than the Malaysian respondents were identified by examining the three main components of expectancy, instrumentality and valence, of Vroom's framework. The study findings are discussed in terms of the implications they have for the necessary organizational development of businesses in the competitive Asia-Pacific region.
Bruno Amann, Jacques Jaussaud and Johannes Schaaper
Large multinational companies (MNCs) are strongly formalized, often standardized and complex with multiple hierarchical levels. Over the past few decades, MNCs have strengthened…
Abstract
Purpose
Large multinational companies (MNCs) are strongly formalized, often standardized and complex with multiple hierarchical levels. Over the past few decades, MNCs have strengthened their coordination and control systems by creating regional headquarters (RHQs). This study aims to investigate how MNCs rearticulate control dimensions at RHQs, to coordinate and exert control over subsidiaries in the Asia-Pacific region.
Design/methodology/approach
Based on a survey of 86 French MNCs in the Asia-Pacific region, this study applies a structural equation model to determine RHQs’ roles in the field of regional decision-making, coordination and control.
Findings
Large MNCs, with a significant presence in Asia, transfer coordination and control to RHQs, in a way that leads us to propose the use of the expression “regio-centralization.” RHQs become socialization hubs, where most regional decisions are taken and where international managers meet. MNCs mobilize at the same time expatriates, short-term assignees and local managers who intensively interact at RHQs. Thus, informal control at RHQs increases, partly substituting formal control by HQs. Smaller MNCs, without RHQs, on the contrary, base their control and coordination on the formalization of HQs-subsidiary relations, especially through strong reporting, in combination with centralized decision-making at HQs.
Research limitations/implications
This study is based on MNCs from one specific country, France, and focuses only on the dynamic Asia-Pacific host region. Coordination and control in less dynamic regions may reveal different results.
Originality/value
This study leads to a better understanding of how large MNCs reorganize dispersed activities in the Asia-Pacific region by creating RHQs, where important control and coordination functions are relocated.