Abstract
The purpose of this article is to explain and solve the early stage of High-tech small and medium-sized enterprises (SMEs) development issue in Tianjin, specifically the so-called Valley of Death. The Valley of Death is used as a metaphor to describe the relative lack of resources and expertise in the area of development. In this article, the resources and expertise mainly refer to the financing and loans required by high-tech SMEs in the early stage. Through the analysis of the actual situation of developing high-tech SMEs in Tianjin, the article illustrates organizations can bridge the Valley of Death through coordination and institutional support. The literature review and normative analysis methodology used in this study gathered data from literature and second-hand materials with extensive experience to construct the framework model of early stage development of Tianjin high-tech SMEs. Results indicate that institutional support has been very effective in addressing the Valley of Death. Implications of these findings suggest local government must understand the challenges in the valley, must facilitate the development of skills for the SMEs, and must supply the resources to SMEs.
Highlights
The importance and potential contribution of the high-tech small and medium enterprises (SMEs) as it is called, are supported by both theoretical arguments and empirical evidence
The aim of this article is to examine how local authority coordination and institutional support help high-tech small and medium-sized enterprises (SMEs) navigate the early stage of their development, in order to more fully understand the Valley of Death faced by SMEs and to identify an empirical basis for implementing policy and practice
The literature review approach mainly aimed at enterprise exogenous and endogenous growth theory and the influencing factors of firm growth, influence of Tianjin high-tech SMEs growth “the Valley of Death” are analyzed, at the same time, the normative analysis approach is mainly used in the proposed deal with Tianjin SMEs “the Valley of Death” measures are analyzed
Summary
The importance and potential contribution of the high-tech small and medium enterprises (SMEs) as it is called, are supported by both theoretical arguments and empirical evidence. This article examines that the role of local government in providing institutional support to high-tech SMEs. The city of Tianjin, China is highly suitable for such a case study for several reasons. 70% of organizations concentrated in strategic emerging industries such as renewable energy, biomedical engineering, environmental sciences, and technology manufacturing Growth in these emerging industries provided momentum for Tianjin’s industrial transformation and rapid economic development. We defined the Valley of Death in the research methodology, analyzed the importance of developing high-tech SMEs to the national economy of Tianjin, and analyzed the reasons that affected the Valley of Death encountered by high-tech SMEs in the early growth stage, and examine the role of institutional support through coordination efforts with local government in helping alleviate the Valley of Death. We discuss practical and conceptual implications of this framework for high-tech SMEs development and strategic growth
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