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

Author

Listed:
  • Yong Kyu Lew
  • Zaheer Khan
  • Rekha Rao-Nicholson
  • Shaowei He

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.

Suggested Citation

  • Yong Kyu Lew & Zaheer Khan & Rekha Rao-Nicholson & Shaowei He, 2016. "Internationalisation process of Chinese SMEs: the role of business and ethnic-group-based social networks," International Journal of Multinational Corporation Strategy, Inderscience Enterprises Ltd, vol. 1(3/4), pages 247-268.
  • Handle: RePEc:ids:ijmcst:v:1:y:2016:i:3/4:p:247-268
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    Citations

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    Cited by:

    1. Hazem Ali & Min Li & Zhongli Wu & Xunmin Qiu, 2023. "An Examination of the Identification and Exploitation of International Opportunities Among Chinese Traditional SMEs," SAGE Open, , vol. 13(3), pages 21582440231, September.
    2. Younis, Heba & Dimitratos, Pavlos & Elbanna, Said, 2022. "International entrepreneurial SMEs in the muslim world: The role of religion in the GCC countries," International Business Review, Elsevier, vol. 31(5).
    3. Khan, Zaheer & Lew, Yong Kyu, 2018. "Post-entry survival of developing economy international new ventures: A dynamic capability perspective," International Business Review, Elsevier, vol. 27(1), pages 149-160.
    4. Lin, Jingyi & Plechero, Monica, 2019. "Global innovation networks for Chinese high tech small and medium enterprises: the supportive role of highly skilled migrants and returnees," Papers in Innovation Studies 2019/5, Lund University, CIRCLE - Centre for Innovation Research.
    5. Christopher Richardson & Shaizatulaqma Kamalul Ariffin, 2019. "A Leap of Faith? Managerial Religiosity And Market Entry Decisions," Management International Review, Springer, vol. 59(2), pages 277-305, April.

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