How do SMEs face institutional challenges in China?

Noémie Dominguez () and Ulrike Mayrhofer ()
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Noémie Dominguez: MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon
Ulrike Mayrhofer: GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UniCA - Université Côte d'Azur

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Abstract: This chapter examines how small and medium-sized enterprises (SMEs) can deal with institutional challenges in the Chinese market. The authors use institutional theory to characterize the political and cultural context in China. The empirical study is based on interviews conducted with managers of the industrial SME Mixel Agitators at the French headquarters and the Chinese subsidiary, and with experts on Franco-Chinese relationships. The findings show that foreign SMEs can address institutional challenges by investing time and resources in their local subsidiaries, learning about how to operate in the Chinese market and recruiting local managers with guanxi networks. The study contributes to a better understanding of how Western SMEs can succeed in the Chinese context.

Keywords: Institutional theory; political context; cultural context; SMEs; internationalization; China. (search for similar items in EconPapers)
Date: 2021
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Published in Alain Verbeke, Rob van Tulder, Elizabeth Rose & Yingqi Wei (eds.). The multiple dimensions of institutional complexity in international business research, Emerald, pp.287-296, 2021

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-03083474

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