Internationalisation process of Chinese SMEs: the role of business and ethnic-group-based social networks

Yong Kyu Lew, Zaheer Khan, Rekha Rao-Nicholson and Shaowei He

International Journal of Multinational Corporation Strategy, 2016, vol. 1, issue 3/4, 247-268

Abstract: This article examines how emerging market small and medium-sized enterprises (EM-SMEs) leverage business and social networks for their internationalisation. Drawing from the internationalisation process and network literature, it investigates four Chinese SMEs which have effectively entered foreign markets. The sample of Chinese manufacturing SMEs provides a valuable reference for foreign-network constrained EM-SMEs that face challenges and opportunities in their internationalisation process. The findings suggest that both business and ethnic group-based social networks as well as the strength of these networks play an important role in influencing the internationalisation of Chinese SMEs. Particularly, the findings illustrate the importance and complementary role of ethnic ties (i.e., social networks), and relationships with foreign multinationals (i.e., business networks) that enable the internationalisation process of the EM-SMEs.

Keywords: emerging markets; small and medium-sized enterprises; manufacturing SMEs; internationalisation process; social networks; ethnic ties; China; ethnic groups; foreign markets; market entry; business networks; foreign multinationals; MNCs; multinational corporations. (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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