Hostname: page-component-cd9895bd7-jkksz Total loading time: 0 Render date: 2024-12-25T15:11:54.305Z Has data issue: false hasContentIssue false

Institutional Bridging for SME High-Distance Internationalisation to China: A Contextualised Explanation

Published online by Cambridge University Press:  03 July 2019

Carole Couper*
Affiliation:
Sheffield University Management School, UK

Abstract

This article offers a contextualised explanation of the process of institutional bridging by Delta, a British SME, in order to internationalise to China across high institutional distance. The study uncovers three novel mechanisms of ‘Cross-institutional Dissonance Mitigation’, ‘Multi-level Strategic Embedding’, and ‘Cross-institutional Consonance Retuning’ to explain how and why a failing SME with limited resources and networks was able to bridge the institutional distance and internationalise to the challenging Chinese market. This article contributes to the literature on SME internationalisation across high institutional distance by opening the ‘black box’ of SME institutional bridging, hence demonstrating the benefits of contextualised explanations to extend research into internationalisation phenomena that span multiple institutional boundaries.

摘要

本文针对德尔塔这家英国中小企业跨越巨大的制度距离进入中国市场而进行的制度连接过程,提供了一个情境化的解释。本研究揭示了“减缓跨制度失调”、“多层次的战略嵌入”和“回归跨制度协调”三种新颖的机制,解释了一个资源和网络有限且面临失败的中小企业怎样以及为什么能够弥合制度距离,通过国际化进入具有挑战性的中国市场。这篇文章表明,情境化解释能够拓展到研究跨越多重制度边界的国际化现象中,为中小企业跨越高制度距离实现国际化方面的文献做出了贡献。

Аннотация

Данная статья предлагает контекстуальное объяснение процесса институционального сближения в британской компании Delta для интернационализации в Китае на большом институциональном расстоянии. Это исследование раскрывает три новых механизма, а именно «Межинституциональное смягчение диссонанса», «Многоуровневое стратегическое встраивание» и «Межинституциональную перенастройку консонанса», чтобы объяснить, как и почему не слишком успешное малое предприятие с ограниченными ресурсами и связями смогло преодолеть институциональное расстояние и выйти на сложный китайский рынок. Эта статья вносит свой вклад в литературу по интернационализации малого и среднего бизнеса на большом институциональном расстоянии, и открывает «черный ящик» институционального сближения в малых и средних предприятиях, и, следовательно, демонстрирует преимущества контекстуальных объяснений для расширения границ исследований в сферу процессов интернационализации, которые охватывают несколько институциональных границ.

Resumen

Este artículo ofrece una explicación contextualizada del proceso de puente institucional de Delta, una pyme británica, con el fin de internacionalizarse a China cruzando una gran distancia institucional. El estudio deja al descubierto tres mecanismos novedosos de “Mitigación de disonancia interinstitucional”, “Inserción estratégica multinivel” y ‘”Re-afinación de consonancia interinstitucional” para explicar cómo y por qué una pyme con recursos y redes limitadas fue capaz de tender un puente a través de la distancia institucional e internacionalizarse al desafiante mercado chino. Este artículo contribuye a la literatura sobre la internacionalización de las pymes a través de una gran distancia institucional al abrir la "caja negra" de la construcción de puentes institucionales de las pymes, demostrando así los beneficios de las explicaciones contextualizadas para ampliar la investigación sobre los fenómenos de la internacionalización que abarcan múltiples fronteras institucionales.

Type
Special Issue Articles
Copyright
Copyright © The International Association for Chinese Management Research 2019 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

Accepted by: Guest Editor Emmanuella Plakoyiannaki

References

REFERENCES

Abdi, M., & Aulakh, P. S. 2012. Do country-level institutional frameworks and interfirm governance arrangements substitute or complement in international business relationships? Journal of International Business Studies, 43(5): 477497.Google Scholar
Baum, M., Schwens, C., & Kabst, R. 2015. A latent class analysis of small firms’ internationalization patterns. Journal of World Business, 50(4): 754768.Google Scholar
Bhaskar, R. 2014. The possibility of naturalism: A philosophical critique of the contemporary human sciences (4th ed). London: Routledge.Google Scholar
Brunning, N. S., Sonpar, K., & Wang, X. 2012. Host-country national networks and expatriate effectiveness: A mixed-method study. Journal of International Business Studies, 43(4): 444450.Google Scholar
Burt, R. S. 1995. Structural holes: The social structure of competition. Cambridge, MA: First Harvard University Press.Google Scholar
Burt, R. S. 2011. Brokerage and closure: An introduction to social capital. Oxford, UK: Oxford University Press.Google Scholar
Cabrol, M., Favre-Bronte, V., & Fayolle, A. 2009. The influence of the entrepreneur's network on the internationalisation of young French firms. Entrepreneurship and Innovation, 10(3): 213221.10.5367/000000009789067806Google Scholar
Carney, M., Dieleman, M., & Taussig, M. 2015. How are institutional capabilities transferred across borders? International Business Review, 51(6): 882894.Google Scholar
Chidlow, A., Plakoyiannaki, E., & Welch, C. 2014. Translation in cross-language international business research: Beyond equivalence. Journal of International Business Studies, 45(5): 562582.Google Scholar
Child, J. 2009. Context, comparison, and methodology in Chinese management research. Management and Organization Review, 5(1): 5773.Google Scholar
Child, J., & Marinova, S. 2014. The role of contextual combinations in the globalization of Chinese firms. Management and Organization Review, 10(3): 347371.Google Scholar
Child, J., Rodrigues, S. B., & Frynas, G. J. 2009. Psychic distance, its impact and coping modes: Interpretation of SME decision makers. Management International Review, 49(2): 199224.10.1007/s11575-008-0136-3Google Scholar
Coeurderoy, R., & Murray, G. 2008. Regulatory environment and the location decision: Evidence from the early foreign market entries of new-technology-based firms. Journal of International Business Studies, 39(4): 670687.Google Scholar
Corbin, J., & Strauss, A. 2008. Basics of qualitative research: Techniques and procedures for developing grounded theory. Thousand Oaks, CA: Sage Publications, Inc.Google Scholar
Coviello, N. E. 2006. The network dynamics of international new ventures. Journal of International Business Studies, 37(5): 713731.10.1057/palgrave.jibs.8400219Google Scholar
Coviello, N., & Munro, H. 1997. Network relationships and the internationalisation process of the small software firms. International Business Review, 6(4): 361386.Google Scholar
Easton, G. 2010. Critical realism in case study research. Industrial Marketing Management, 39(1): 118128.10.1016/j.indmarman.2008.06.004Google Scholar
Ellis, P. D. 2000. Social ties and foreign market entry. Journal of International Business Studies, 31(3): 443469.Google Scholar
Ellis, P. D. 2011. Social ties and international entrepreneurship: Opportunities and constraints affecting firm internationalisation. Journal of International Business Studies, 42(1): 99127.Google Scholar
Estrin, S., Baghdasaryan, D., & Meyer, K. E. 2009. The impact of institutional and human resource distance on international entry strategies. Journal of Management Studies, 46(7): 11711196.Google Scholar
Evers, N., & O'Gorman, C. 2011. Improvised internationalization in new ventures: The role of prior knowledge and networks. Entrepreneurship and Regional Development: An International Journal, 23(7–8): 549574.Google Scholar
Fletcher, M., & Harris, S. 2012. Knowledge acquisition for the internationalization of the smaller firm: Contents and sources. International Business Review, 21(4): 631647.10.1016/j.ibusrev.2011.07.008Google Scholar
Geary, J., & Aguzzoli, R. 2016. Miners, politics and institutional caryatids: Accounting for the transfer of HRM practices in the Brazilian multinational enterprise. Journal of International Business Studies, 47(8): 968996.10.1057/jibs.2016.24Google Scholar
George, A. L., & Bennett, A. 2005. Case studies and theory development in the social sciences. Cambridge, MA: MIT Press.Google Scholar
Hara, G., & Kanai, T. 1994. Entrepreneurial networks across oceans to promote international strategic alliances for small businesses. Journal of Business Venturing, 9(6): 489507.Google Scholar
Holden, N. J., & Michailova, S. 2014. A more expansive perspective on translation in IB research: Insights from the Russian handbook of knowledge management. Journal of International Business Studies, 45(5): 906918.Google Scholar
Jennings, P. D., Greenwood, R., Lounsbury, M. D., & Sudaby, R. 2013. Institutions, entrepreneurs, and communities: A special issue on entrepreneurship. Journal of Business Venturing, 28(1): 19.Google Scholar
Jia, F., Rutherford, C., & Lamming, R. 2016. Cultural adaptation and socialisation between Western buyers and Chinese suppliers: The formation of a hybrid culture. International Business Review, 25(6): 12461261.10.1016/j.ibusrev.2016.03.009Google Scholar
Karra, N., Phillips, N., & Tracey, P. 2008. Building the born global firm: Developing entrepreneurial capabilities for international new venture success. Long Range Planning, 41(4): 440458.Google Scholar
Kiss, A. N., & Danis, W. M. 2008. Country institutional context, social networks, and new venture internationalisation speed. European Journal of Management, 26(6): 388399.Google Scholar
Kostova, T. 1999. Transnational transfer of strategic organizational practices: A contextual perspective. Academy of Management Review, 24(2): 308324.Google Scholar
Langley, A., Smallman, C., Tsoukas, H., & Van de Ven, A. H. 2013. Process studies of change in organization and management: Unveiling temporality, activity, and flow. Academy of Management Journal, 56(1): 113.Google Scholar
Li, X., & Ma, L. 2015. Business management practices: Converging in some aspects but diverging in others. Management and Organization Review, 11(4): 795805.10.1017/mor.2015.57Google Scholar
Lillevik, W. 2015. Defining acculturative dissonance and developing a model of expatriate acculturative stress. Global Enterprise Management, 2: 191206. [Cited 7 September 2015]. Available from URL: http://www.palgraveconnect.com.ezproxy.lib.gla.ac.uk/pc/doifinder/10.1057/9781137510709.0014Google Scholar
Lin, D., Lu, J., Li, P. P., & Liu, X. 2015. Balancing formality and informality in business exchanges as a duality: A comparative case study of returnee and local entrepreneurs in China. Management and Organization Review, 11(2): 315342.Google Scholar
Loane, S., & Bell, J. D. 2006. Rapid internationalisation among entrepreneurial firms in Australia, Canada, Ireland and New Zealand: An extension to the network approach. International Marketing Review, 23(5): 467485.Google Scholar
Mason, K., Easton, G., & Lenney, P. 2013. Causal social mechanisms; from the what to the why. Industrial Marketing Management, 42(3): 347355.Google Scholar
Matthyssens, P., Vandenbempt, K., & Bockhaven, W. 2013. Structural antecedents of institutional entrepreneurship in industrial networks: A critical realist explanation. Industrial Marketing Management, 42(3): 405420.Google Scholar
Meyer, K. E. 2015. Context in management research in emerging economies. Management and Organization Review, 11(3): 369377.Google Scholar
Meyer, K. E., Estrin, S., Bhaumik, K. S., & Peng, M. W. 2009 Institutions, resources and entry strategies in emerging economies. Strategic Management Journal, 30(1): 6180.Google Scholar
Miles, M. B., & Huberman, A. M. 1994. Qualitative data analysis. London, UK: SAGE Publications, Inc.Google Scholar
OECD. 2017. Enhancing the contributions of SMEs in a global and digitised economy. Organisation for Economic Co-operation and Development, Paris. [Cited 28 January 2018]. Available from URL: https://www.oecd.org/mcm/documents/C-MIN-2017-8-EN.pdfGoogle Scholar
Ojala, A. 2009. Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically-distant market. International Business Review, 18(1): 5059.10.1016/j.ibusrev.2008.10.002Google Scholar
Orr, R. J., & Scott, R. W. 2008. Institutional exceptions on global projects: A process model. Journal of International Business Studies, 39(4): 562588Google Scholar
Pajunen, K. 2008. The nature of organizational mechanisms. Organization Science, 29(11): 14491468.Google Scholar
Peters, L. D., Pressey, A. D., Vanharanta, M., & Johnston, W. J. 2013. Constructivism and critical realism as alternative approaches to the study of business networks: Convergences and divergences in theory and in research practice. Industrial Marketing Management, 42(3): 336346.Google Scholar
Piekkari, R., Plakoyiannaki, E., & Welch, C. 2010. ‘Good’ case research in industrial marketing: Insights from research practice. Industrial Marketing Management, 39(1): 109117.Google Scholar
Prashantham, S., & Dhanaraj, C. 2010. The dynamic influence of social capital on the international growth of new ventures. Journal of Management Studies, 47(6): 967994.Google Scholar
Ryan, A., Tähtinen, J., Vanharanta, M., & Mainela, T. 2012. Putting critical realism to work in the study of business relationship processes. Industrial Marketing Management, 41(2): 300311Google Scholar
Rodrigues, S., & Child, J. 2008. The development of corporate identity: A political perspective. Journal of Management Studies, 45(5): 885911.10.1111/j.1467-6486.2007.00750.xGoogle Scholar
Sayer, A. 1992. Method in social science: A realist approach (2nd ed). London: Routledge.Google Scholar
Schwens, C., Eiche, J., & Kabst, R. 2011. The moderating impact of informal institutional distance and formal institutional risk on SME entry mode choice. Journal of Management Studies, 48(2): 330351.Google Scholar
Scott, R. S. 2008. Institutions and organizations. London: SAGE Publications.Google Scholar
Shimoni, B., & Bergmann, H. 2006. Managing in a changing world: From multiculturalism to hybridization–The production of hybrid management cultures in Israel, Thailand, and Mexico. Academy of Management Perspectives, 20(3): 7689.10.5465/amp.2006.21903482Google Scholar
Stening, B. W., & Zhang, M. Y. 2007. Methodological challenges confronted when conducting management research in China. International Journal of Cross Cultural Management, 7(1): 121142.Google Scholar
Tang, Y. K. 2011. The Influence of networking on the internationalisation of SMEs: Evidence from internationalized Chinese firms. International Small Business Journal, 29(4): 374398.Google Scholar
Tracey, P., & Phillips, N. 2016. Managing the consequences of organizational stigmatization: Identity work in a social enterprise. Academy of Management Journal, 59(3): 740765.Google Scholar
Welch, C., Piekkari, R., Plakoyiannaki, E., & Paavilainen-Mäntymäki, E. 2011. Theorising from case studies: Towards a pluralist future for international business research. Journal of International Business Studies, 42(5): 740762.Google Scholar
Yu, J. F., Brett, A. G., & Oviatt, B. M. 2011. Effects of alliances, time, and network cohesion on the initiation of foreign sales by new ventures. Strategic Management Journal, 32(4): 424446.Google Scholar