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Yuan and marketing: The perception of Chinese owner-managers

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  • Siu, Wai-sum
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    Entrepreneurship researchers point to the lack of any substantial assessment of the state of research into entrepreneurship in regions other than North America. Thus, to advance entrepreneurship research and build an indigenous model, this paper attempts to explain Yuan or external locus of control [cf. Rotter, J. B. (1966). Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs, 80 (Whole No. 609)], in the context of Chinese owner-managers. This paper undertakes a narrative analysis of the interviews conducted with 48 Chinese, 26 Hong Kong and 28 Taiwanese owner-managers and/or chief marketing executives of small and medium enterprises about how Yuan affects their marketing practices. Four dimensions of Yuan (e.g., association, quality, matching and attitude) were identified. A two-dimensional model using the optimal scaling method was applied to determine the interdependence of the four dimensions. Four groups, namely Yuan accepters, anti-Yuan-ers, stuck in the middlers, and dedicated Yuan believers, emerged. The results suggest that Yuan believers tend to exhibit higher company performance.

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    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 43 (2008)
    Issue (Month): 4 (October)
    Pages: 449-462

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    Handle: RePEc:eee:worbus:v:43:y:2008:i:4:p:449-462
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    1. John Cherry, 2006. "The Impact of Normative Influence and Locus of Control on Ethical Judgments and Intentions: a Cross-Cultural Comparison," Journal of Business Ethics, Springer, vol. 68(2), pages 113-132, October.
    2. Fan, Ying, 2002. "Questioning guanxi: definition, classification and implications," International Business Review, Elsevier, vol. 11(5), pages 543-561, October.
    3. Danny Miller & Jean-Marie Toulouse, 1986. "Chief Executive Personality and Corporate Strategy and Structure in Small Firms," Management Science, INFORMS, vol. 32(11), pages 1389-1409, November.
    4. Brooksbank, Roger & Kirby, David A & Wright, Gillian, 1992. "Marketing and Company Performance: An Examination of Medium Sized Manufacturing Firms in Britain," Small Business Economics, Springer, vol. 4(3), pages 221-236, September.
    5. Wai-sum Siu & Zhi-chao Liu, 2005. "Marketing in Chinese Small and Medium Enterprises (SMEs): The State of the Art in a Chinese Socialist Economy," Small Business Economics, Springer, vol. 25(4), pages 333-346, November.
    6. Wai-Sum Siu & Wenchang Fang & Tingling Lin, 2004. "Strategic marketing practices and the performance of Chinese small and medium-sized enterprises (SMEs) in Taiwan," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(2), pages 161-178, March.
    7. McGrath, Rita Gunther & MacMillan, Ian C., 1992. "More like each other than anyone else? A cross-cultural study of entrepreneurial perceptions," Journal of Business Venturing, Elsevier, vol. 7(5), pages 419-429, September.
    8. Sonya Fontenot Premeaux & Arthur G. Bedeian, 2003. "Breaking the Silence: The Moderating Effects of Self-Monitoring in Predicting Speaking Up in the Workplace," Journal of Management Studies, Wiley Blackwell, vol. 40(6), pages 1537-1562, 09.
    9. Begley, Thomas M. & Boyd, David P., 1987. "Psychological characteristics associated with performence in entrepreneurial firms and smaller businesses," Journal of Business Venturing, Elsevier, vol. 2(1), pages 79-93.
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