Fit by adaptation or fit by founding? A comparative study of existing and new entrepreneurial cohorts in China

Abstract

Extant research provides ambiguous views on the network adaptability of existing ventures and new ventures during environmental change. Applying an institutional perspective, this research aims to provide a clearer picture by comparing the adaptation and network configurations of existing vs. new entrepreneurial cohorts during China's institutional change after 1992. The qualitative and quantitative analyses show that the existing cohort of entrepreneurs displays network inertia, in that they largely maintain strong tie‐based political and market networks; the new cohort instead demonstrates better adaptation by establishing fewer political networks but more weak and diverse market networks. This comparative research unpacks the institutional mechanisms underlying such differences, and serves as a ground for future investigations dealing with the strategic actions of different entrepreneurial cohorts that are largely neglected in previous studies. Copyright © 2014 John Wiley & Sons, Ltd.

Waking from Mao’s Dream: Communist Ideological Imprinting and the Internationalization of Entrepreneurial Ventures in China

“…A majority of Chinese entrepreneurs during the period of our study were born between the 1950s and 1978 (Zhang, Tan, and Tan, 2016), the Maoist period when the government seriously undertook the communist cause and the country was committed to that political ideology. People born during that period were thought to be “Born Red” (Gao, 1987), and political life—particularly communist ideology—played a predominant role.…”

“…In addition, members of these groups are selected through governmental processes and likely share similar values and experiences, have overlapping business knowledge, and exhibit similar behavioral patterns. Through interactions with these “common” others, entrepreneurs’ trust and friendship are more likely to develop, facilitating information diffusion (Haunschild, 1993; Vissa, 2012; Zhang, Tan, and Tan, 2016). For instance, common others likely transfer material private information and affect individuals’ values (Finkelstein, Hambrick, and Cannella, 2009).…”

Untangling the relationship between strategic consistency and organizational performance: An empirical analysis of moderator variables

“…By contrast, most researchers using strategic change theory contend that strategic adaptability is a necessary condition for a firm to survive and to enhance its efficiency in a rapidly changing environment (Miller, 1992; Zajac & Kraatz, 2000; Peli, 2009; Zhang, Tan, & Tan, 2015). Adaptability implies that a firm will change its strategic content and scope to adjust to different external environmental conditions and internal organizational factors (Boeker, 1997; Rajagopalan & Spreitzer, 1996); therefore, its strategy is a constantly adaptive behavior (Miller, 1992; Moss, Payne, & Moore, 2013).…”

Analysis of Entrepreneurial Motivation on Entrepreneurial Psychology in the Context of Transition Economy

“…The entrepreneurial environment scale is divided into two dimensions, namely, policy environment and business environment ( Zhang et al, 2016 ). The government environment refers to the subjective score based on the degree of identity described in four variables, namely, policies and regulations, government functions, government information, and financing services.…”