The impact of sub-national institutions on SMEs’ diversification into new businesses: evidence from China

Chen, Dong; Li, Donghong; Paik, Yongsun

doi:10.1080/08985626.2019.1640444

Cited by 9 publications

(14 citation statements)

References 60 publications

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“…Trying different possibilities in an identified emergent sector-the organization gradually moves toward altering (upgrading) its identity. This study makes contributions to the extant literature on SME diversification (Chen et al, 2020;Merino et al, 2014;Tallott & Hilliard, 2016) by showing how SMEs can overcome its resource constraints to enable unrelated diversification and altering identity while not losing focus on and disturbing its original businesses.…”

Section: Introductionmentioning

confidence: 87%

“…The study reveals that diversification to an emergent sector (Chen et al, 2020) could be driven by the organizational aspiration (Magron, 2014) to build the image as a modern organization. Such aspiration is fuelled by the organization’s steady growth in core business enabling entrepreneurial appetite—motivation and resources in an emerging sector in the home country context.…”

Section: Introductionmentioning

confidence: 99%

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Theorizing ‘Variegated Bonding as SME Diversification Strategy’ to Extend Business from Traditional to Emergent Sectors

kyzy

2022

South Asian Journal of Business and Management Cases

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Few studies on diversification strategies address small and medium-sized enterprises (SMEs) and how they differ from large firms. Although related diversifications tend to be the approach for SME diversifications, we need to know more about unrelated diversifications by SMEs. This study focuses on the process of SME unrelated diversification and conduct ethnographic case study on a family business SME from Kyrgyzstan. The inductive process study offers variegated bonding as a possible process of SME diversification. The process consists of the three steps: appetizing, baby-stepping and reconstructing identity. This study extends the extant literature on SME diversification and investigates how the organizational aspiration of identity reconstructions could lead to the focal organization’s entry to an unrelated sector and establishing connectivity between its core and emergent sector organization that eventually alters its identity.

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Section: Introductionmentioning

confidence: 87%

Section: Introductionmentioning

confidence: 99%

Theorizing ‘Variegated Bonding as SME Diversification Strategy’ to Extend Business from Traditional to Emergent Sectors

kyzy

2022

South Asian Journal of Business and Management Cases

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“…Researchers highlight the existence of institutional differences between territories of the same country (e.g. Chen et al 2020;Meyer and Nguyen 2005). Indeed, the most recent versions of neo institutionalism highlight local institutional idiosyncrasies (North 1990(North , 2005, proposing that the institutional peculiarities of a place-e.g.…”

Section: Subnational Institutional Configurations and Internationalis...mentioning

confidence: 99%

“…In this respect, the institutional peculiarities of a location-e.g. tax rates, level of training of the local population, etc.-can affect not only the business decisions made by the SMEs located in those areas (Bjørnskov and Foss 2016;Chen et al 2020) but also the effectiveness of the policies and programmes implemented by their governments to encourage a specific business practice or strategy (Cantwell et al 2010;North 2005;Rodríguez Pose 2013). In this regard, Donnelly and Manolova (2020) call our attention to the lack of knowledge about the specific levels of institutional influence (e.g.…”

Section: Introductionmentioning

confidence: 99%

Subnational institutional configurations and international expansion of SMEs in emerging economies

Cabrera

Soto

2022

J Int Entrep

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In contrast to institutional studies based on comparisons between countries and based on a deterministic perspective that analyses the influence of institutions on the performance of the individual in emerging economies, the present research looks to the most recent versions of neo institutionalism and to the literature on entrepreneurship and international business in order to study (1) the existence of subnational institutional differences in emerging economies and (2) whether such differences relate to the international expansion of SMEs located in such territories. This study takes evidence from a sample of 296 entrepreneurs who founded their SMEs in the Federal State of Sergipe (Brazil) and analyses from a comparative perspective of six tourist municipalities located in that state. The results allow us to identify the existence of differences in the regulative, normative, and cognitive institutional dimensions between subnational territories and how such differences relate to the international expansion of SMEs located in each subnational territory.

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“…Hypothesis 2 The development effects of FDI depend on the host's regional institutional level. By using regional institutions, a more fine-grained analysis of the heterogeneous effects of FDI can be made, which is especially relevant for a country with large development differences (Chen et al, 2020;Ma et al, 2016). This approach, which is the first of its kind for the case of Brazil, facilitates the analysis of nonlinear impacts of FDI for different levels of institutional development at the local level.…”

Section: The Role Of Regional Institutionsmentioning

confidence: 99%

Are foreign companies a blessing or a curse for local development in Brazil? It depends on the home country and host region's institutions

et al. 2021

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Latin America is an important destination for foreign direct investment (FDI). The debate on whether FDI is beneficial or harmful to the region is ongoing. Our study investigates how institutions from the home country and the host region affect the FDI‐human development nexus in Brazil. Specifically, we employ a unique data set comprising 92 municipalities and companies from 52 countries. We use threshold regressions to scrutinize the heterogeneous effects of FDI on the municipalities' income, education, health, and productivity levels. Our results indicate that locations with a high concentration of companies from countries with well‐developed institutions tend to experience a more positive effect of FDI on local development than regions with a high concentration of companies from emerging economies with less developed institutions. This effect is nonlinear, though, and more significant in institutionally weak regions. Our findings suggest that the FDI‐human development nexus is neither always positive or negative. Instead, it varies depending on which human development aspect is being analyzed and on institutions. Finally, we discuss policy implications for Brazil and Latin America.

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The impact of sub-national institutions on SMEs’ diversification into new businesses: evidence from China

Cited by 9 publications

References 60 publications

Theorizing ‘Variegated Bonding as SME Diversification Strategy’ to Extend Business from Traditional to Emergent Sectors

Theorizing ‘Variegated Bonding as SME Diversification Strategy’ to Extend Business from Traditional to Emergent Sectors

Subnational institutional configurations and international expansion of SMEs in emerging economies

Are foreign companies a blessing or a curse for local development in Brazil? It depends on the home country and host region's institutions

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