High technology start-up innovation and the role of guanxi: an explorative study in China from an institutional perspective

2017

IMR

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Born global firms' growth and collaborative entry mode: The role of transnational entrepreneurs Purpose-This paper aims to investigate the role of transnational entrepreneurs in growing born global firms, with a focus on the growth process facilitated by collaborative entry mode. Design/methodology/approach-We chose the solar photovoltaic (PV) industry as our empirical setting. This industry is a particularly good context for our study because many firms in this industry sell knowledge-intensive products internationally from their inception. Our primary data consist of 32 in-depth interviews with entrepreneurs, industry association representatives, research institute scholars, and professional service firms. Findings-Our study highlights the importance of transnational entrepreneurs who develop born global firms to maturity by using their technological knowledge, international connections, and bicultural advantages to navigate and leverage institutional complexity. Collaborative entry mode with distributors enables born global firms' high growth rapidly, whereas transnational entrepreneurs play a central role in building and expanding international network. IPO in overseas stock exchange accelerates the high growth trajectory of born global firm by signalling its maturity. Research limitations/implications-We took a process perspective by examining the growth and maturity of born global firms by collaborative partnership; our focus on the role of transnational entrepreneurs highlighted entrepreneurs' sensitivity to institutional complexity along the growth trajectory. Practical implications-We recommend both incumbent and entrepreneurial firms in developed economies collaborate with transnational entrepreneurs in various business areas. Industry firms may be able to cooperate on product and marketing development, and professional service firms can offer services to expand born global firms further, because transnational entrepreneurs follow the global "rules of the game". Originality/value-We shed important light on the role of transnational entrepreneurs throughout the growth of born global firms via collaborative entry mode. Furthermore, we develop a multilevel framework for analysing the combined influence of transnational entrepreneur and institutional complexity on the growth of born global firm.

Section: The Transnational Entrepreneur's Role In Born Global Growthmentioning

confidence: 99%

Born global firms’ growth and collaborative entry mode: the role of transnational entrepreneurs

2017

IMR

Self Cite

“…Furthermore, Guanxi can be leveraged to acquire resources for high-tech ventures in China (Liu, Woywode, & Xing, 2012). Given the importance of familial collectivism in Chinese society, Guanxi mirrors this familial collectivism in social and, in particular, business relationships.…”

Section: Relational Sensitivity: Work Vs Non-work Settingmentioning

confidence: 99%

How culture influences the way entrepreneurs deal with uncertainty in inter-organizational relationships: The case of returnee versus local entrepreneurs in China

International Business Review

Almor

2016

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110

Entrepreneurship is widely associated with uncertainty that stems from inter-organizational relationships. The concept of uncertainty, however, has mostly been analyzed as a uni-variate variable that addresses perceived environmental uncertainty. In this conceptual paper we analyze the concept of uncertainty stemming from inter-organizational relationships in the entrepreneurial context as a multivariate concept, utilizing Milliken's framework, which examines uncertainty by differentiating between state, effect and response uncertainty. Cultural influences are critical in determining how entrepreneurs perceive, analyze and deal with uncertainty in inter-organizational situations. By using illustrative cases of returnee versus local entrepreneurs in China, we propose that entrepreneurs influenced by Western cultures tend to treat state uncertainty as a focal change event, whereas entrepreneurs from Eastern cultures are more likely to consider the contextual factors; entrepreneurs influenced by Western cultures tend to limit effect uncertainty in the professional work setting by looking at cause-effect in an analytical way, whereas entrepreneurs from Eastern cultures are more likely to look at effect uncertainty beyond work; and entrepreneurs influenced by Western cultures tend to respond to perceived uncertainty by analytical-strategic thinking, whereas entrepreneurs from Eastern cultures are more likely to connect multiple factors holistically and to react to uncertainty by engaging the wider community. We argue that in a globalizing world it is pertinent for entrepreneurs who operate in the international environment to have a better understanding of the various facets of uncertainty and how these are related to culture when dealing with inter-organizational relationships.

“…We seek to advance the Guanxi construct theoretically by emphasizing its philosophical foundations. In the Chinese management context, Guanxi has been widely examined from the point of view of its structure, principles, influence on Chinese business, and the ways in which it differs from Western networking (Liu et al, 2012a;Luo et al, 2012). A five-nation comparative study found similarities between Guanxi and other indigenous approaches that have achieved influence in business organizations (Smith et al, 2012).…”

Section: Ambidextrous Guanxi and Traditional Chinese Philosophymentioning

confidence: 99%

“…Leadership styles and Guanxi networks affect Chinese employees' retention in mergers and acquisitions (Zhang et al, 2015a). Guanxi can be leveraged to acquire resources for young technology ventures and to foster innovation (Liu, Woywode, & Xing, 2012a).…”

Section: Introductionmentioning

confidence: 99%

A cultural inquiry into ambidexterity in supervisor–subordinate relationship

Xing

The International Journal of Human Resource Management

Tarba

et al. 2016

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Guanxi is a key construct in Chinese management and organization scholarship, and has been widely treated as a relational concept. However, it is necessary to gain a nuanced and contextualized understanding of Guanxi to examine its cultural antecedents by resorting to traditional Chinese cultures. We draw upon the emerging literature on ambidexterity and HRM to examine Guanxi in the context of superior-subordinate relationship and conceptualize ambidextrous Guanxi as possessing two orientations: relational and meritbased. To investigate ambidextrous Guanxi in the context of superior-subordinate relationship, we perform in-depth, qualitative narrative interviews with managers in Chinese state-owned enterprises (SOEs). Our results reveal three dimensions: loyalty, dependence upon supervisor, and work priority by which ambidextrous Guanxi enables, facilitates, and accommodates the tension between individual career advancement and commitment to the organization. From a cultural inquiry perspective, we argue that Confucianism and Legalism, as cultural antecedents of ambidextrous Guanxi, shed light on its contemporary managerial implications. Our findings suggest that Guanxi can be considered as a strategic HR asset and enhance performance outcomes both at the individual level (career advancement) and the organizational level (commitment to the organization).