Abstract
ABSTRACTThis study explores how sub-national institutions affect the diversification of small and medium-sized enterprises (SMEs) into new businesses. Using a sample of 3240 SMEs in China, we found that the dominance of state-owned enterprises (SOEs) and the development of market systems in a province were related to local SMEs’ diversification. Specifically, in provinces dominated by SOEs, SMEs were less likely to diversify into new businesses. The development of market systems tended to reduce the odds of diversification for SMEs that primarily served local markets, and lower the likelihood of unrelated diversification. As a rare attempt to examine the impact of sub-national institutions on SMEs’ diversification, this study contributes to the research on diversification, institutions, and SME management.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.