Small And Medium-sized Enterprises In China Research Articles

IMPACT OF OPEN INNOVATION ON GLOBALIZATION: A SURVEY STUDY ON CHINA

The objective of this study is to examine the role of open innovation practices to promote globalization. For this purpose, this study considered two open innovation practices: external knowledge and supplier involvement. A survey was carried out to collect primary data from the respondents. This study preferred Chinese small and medium-sized enterprises (SMEs) to examine the role of open innovation in globalization. Data were collected from the employees of SMEs in China. By employing Structural Equation Modeling, this study addressed the important insights for academicians and practitioners. It is concluded that; open innovation practices have key role to promote globalization. The promotion of open innovation practices among the Chinese SMEs can increase the globalization potential. The strategies of open innovation led to increase in business collaboration across the border business organizations. The business collaboration between the SMEs of various countries is the best way to enhance globalization by increasing the level of social capital. Therefore, those institutions who want to promote globalization should promote open innovation practices among the business organizations.

Knowledge network reconstruction for manufacturing SMEs: from the inter-, internal- and network-level perspective

ABSTRACT Knowledge network reconstruction matters the innovation capability and developing orientation of small and medium-sized enterprises (SMEs). We explore the paths of knowledge network reconstruction for SMEs in the manufacturing industry and the impact of multilevel factors on these paths. This research adopts the method of fuzzy-set qualitative comparative analysis (fsQCA) on a sample of 287 manufacturing SMEs in China. The results show two types of paths – Capability & Information driven and Resource driven, which illustrate the importance of resource acquisition capability, and fsQCA enables the examination of configurational effects of different antecedents. This research integrates the views and factors from different levels of knowledge network reconstruction and discusses the conflicting arguments about factors in the existing literature. Furthermore, drawing on a configurational approach provides a more fitting path according to the situations of different enterprises, instead of a thorough investment.

Effects of Domestic and International External Collaboration on New Product Development Performance in SMEs: Evidence from China

This study attempts to examine the influences of domestic and international external collaboration on new product development (NPD) performance in small and medium-sized enterprises (SMEs) and further explores the mediating mechanism of knowledge integration capability and the moderating effects of the innovation climate and organizational legitimacy. In this study, we collected data from 236 manufacturing SMEs in China by means of questionnaires, and multiple hierarchical regression analysis was used to test hypotheses. The results reveal that both domestic and international external collaboration are positively associated with SMEs’ NPD performance. Knowledge integration capability mediates domestic and international external collaboration–SMEs’ NPD performance relationships. Innovation climate positively moderates domestic external collaboration–SMEs’ NPD performance relationship and organizational legitimacy positively moderates domestic and international external collaboration–SMEs’ NPD performance relationships. This study expands the research on the relationship between external collaboration and NPD performance by categorizing external collaboration into two dimensions, domestic and international, and examining their direct influences on SMEs’ NPD performance. Moreover, through examining the mediating effect of knowledge integration capabilities and moderating effects of innovation climate and organizational legitimacy, this paper explains how, and under what conditions, domestic and international external collaboration facilitates the improvement of NPD performance in SMEs.

Corporate social capital and enterprise performance of technology-based SMEs: The mediating role of knowledge integration ability

How to improve enterprise performance has been a research topic widely studied by scholars for a long time. As economic globalization deepens, the business competition becomes increasingly harsh. Technology-based small and medium-sized enterprises (SMEs) play an important role in the rapid development of the country’s economy, especially in China. This study aims to investigate the mediating effect of knowledge integration capability in the relationship between corporate social capital and enterprise performance. The sample group used in this study were 300 technology-based SMEs in China. The research tool was a questionnaire adapted from previous scholars, which passed assessment in terms of content validity and reliability. Data were analyzed using structural equation modelling. The results show that: 1) corporate social capital has a positive impact on enterprise performance, but the impact differs between well-performing and poor-performing enterprises; and 2) knowledge integration ability plays a mediating role in the relationship between corporate social capital and enterprise performance, and the mediating role is the same for both well-performing and poor-performing enterprises. But it played a partial mediating role in the good-performance comparison group and a complete mediating role in the poor-performance comparison group. This study is useful for enterprise management in cultivating and developing the abundant social capital of enterprises and expanding channels for knowledge integration ability to increase enterprise performance.

The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

PurposeThe purpose of this study is to investigate the evolving perceptions and human resource (HR) responses of owners and HR managers of Chinese small and medium-sized enterprises (SMEs) towards local labour markets in the context of the impact of the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThis study adopts a two-stage longitudinal qualitative approach involving 52 interviews with owners and HR managers of Chinese SMEs in the pre- and post-pandemic time periods.FindingsThe findings reveal a shift from the perceptions of a general labour shortage to perceptions of specialised talent shortages and increasing geographical disparities in local labour markets. They further reveal that SMEs are increasingly likely to adopt efficiency-oriented, flexibility-enhancing HR practices in the face of high uncertainty.Practical implicationsThe findings provide insights into the nature of the constraints of SMEs' sustainable development that need to be addressed by policymakers, SME owners and HR managers when they devise and implement policies relating to structure optimisation, labour market integration and mobility enhancement.Originality/valueIn contrast to extant literature that has examined the labour market at the national level, this study explores the views of SMEs (the demand side) by taking a localised perspective on how SMEs have responded to change through their HR practices.

Distinctive influence of entrepreneurs’ socioeconomic and political statuses on the digital transformation of SMEs in China

ABSTRACT Digital transformation offers incredible opportunities for small- and medium-sized enterprises (SMEs). However, the lack of resources is a major constraint for SMEs’ digital transformation, which requires entrepreneurs to play a role in seizing opportunities. Building upon the status theory, this study explored how two types of entrepreneur status, namely, socioeconomic and political statuses, can differently affect SMEs’ digital transformation in China. The regression analysis of a national survey of 4566 Chinese SMEs suggests that entrepreneurs’ socioeconomic status has a positive effect, whereas their political status has a U-shaped effect on SMEs’ digital transformation. We also find that the effect of entrepreneurs’ socioeconomic status is more positive for new ventures, whereas the U-shaped effect of entrepreneurs’ political status is more profound for firms with stronger resource endowments. These findings in the context of emerging economies shed light on drivers of SMEs’ digital transformation from the multiple status perspective.

Explore the Impact of China Fintech Loans on the Financing of SMEs

As an important part of the economy, small and medium-sized enterprises (SMEs) play an important role in the recovery of the economy after the epidemic, but the financing difficulties of SMEs have been exposed but not solved. Fintech is the core force to practice inclusive finance and an important breakthrough to improve the financing constraints of SMEs. Fintech loans rely on big data to conduct credit evaluation and risk management for SMEs and play an important role in expanding corporate financing channels, accelerating loan efficiency, and reducing financial discrimination. First, this paper summarizes the financing status of SMEs in China and then subdivides Fintech loans. From the perspectives of bank Fintech loan use and Fintech loan company development, this paper presents the impact of Fintech loans on SME loans and the relationship between different Fintech loans and summarizes the shortcomings of Fintech loans in resolving the financing problems of SMEs. Finally, based on the current research status and objective reality, it provides suggestions for future research directions.

Relationships of HRM Functions, Chinese Culture and Employee Outcomes in Privately-owned SMEs in China

Purpose: This research investigates the role of selected human resource management (HRM) functions and the influence of Chinese culture on employee outcomes in privately-owned small and medium-sized enterprises (SMEs) in China.
 Design/Methodology/Approach: The study utilized a descriptive quantitative approach, in which a 5-point Likert scale questionnaire has been used during data collection. The research employs a regression model to analyze the relationship between selected HRM functions and employee outcomes using a sample of 308 respondents. The collected data were then analyzed using SPSS and the regression model to test the hypotheses.
 Findings: The results indicate that HRM functions, such as recruitment, performance management, reward management, learning and development, and HR planning, significantly contribute to positive employee outcomes. Interestingly, the study finds that Chinese culture moderates the connection between HRM functions and employee outcomes, thus emphasizing the importance of cultural factors in HRM strategies.
 Implications/Originality/Value: This study has added value to management literature and offers few practical managerial implications. It also provides valuable insights for SMEs in China, highlighting the necessity for culturally tailored HRM functions to achieve better employee outcomes.

Analysis of the Problems and Countermeasures of Innovation Management of Small and Medium-sized Enterprises in China

Small and medium-sized enterprises (SMEs) can promote the development of the national economy and society. In the market, small and medium-sized enterprises can provide jobs, promote technological development and accelerate economic growth. With the development of big data and management information systems, small and medium-sized enterprises are facing severe tests. Innovation management is an implementable way to meet this test. Innovation management is an all-round innovation from the main technology, system and management idea of an enterprise. It not only integrates the external resources of the enterprise but also improves the vitality of the enterprise itself and the ability to deal with risks. Therefore, this paper analyzes the problems and countermeasures of innovation management in SMEs in China. By using the method of a literature review, this paper expounds the requirements, current situation, and solutions of the innovative management of Chinese small and medium-sized enterprises and finally draws the conclusion that SMEs should innovate organization and ideas, widen financing channels, and enhance the ability of independent innovation.

Nexus of Financing Constraints and Supply Chain Finance: Evidence from Listed SMEs in China

As opposed to developed markets, financing constraints are a more pressing issue among Small and Medium-Sized Enterprises (SMEs) in emerging markets. We explore the severity of financing constraints on SMEs, and examine the role of supply chain finance (SCF) in alleviating those constraints, with the focus on a large emerging market: China. Using the panel data of SMEs listed on Shenzhen Stock Exchange from 2014 to 2020, we employ robust estimations of panel-corrected standard errors (PCSEs) and robust fixed-effects methods to analyze the issue. Our cash–cash-flow sensitivity model points out that listed SMEs in China show significant cash–cash-flow sensitivity, and financing constraints are prevalent. We document that the development of SCF has a mitigation effect on the financing constraints on the SMEs. Our robustness test with Yohai’s MM-estimator is also supportive of the main finding. Our study indicates the importance of supply chain finance development in alleviating the financing constraints on SMEs and, subsequently, supporting their sustainability journey. Overall, our findings have important policy implications for the stakeholders involved in emerging markets, and there are lessons to be learned from the Chinese experience. There is still much to be explored in the nexus of SCF and the financing difficulties of SMEs in China at present, with much of the extant literature concentrating only on specific financing mechanisms. Thus, our study fills the gap by providing a broad and comprehensive analysis of the issue.

The effect of SMEs' ambidextrous innovations on supply chain financing performance: balancing effect and moderating effect

PurposeThis study empirically investigates how ambidextrous innovations and their balancing affect the supply chain financing performance (SCFP) of small and medium-sized enterprises (SMEs), based on signaling theory. Moreover, this study explores the moderating effect of the breadth and depth of digital technology deployment on the relationship between ambidextrous innovations and the SCFP of SMEs.Design/methodology/approachA mixed-methods design is used, including a qualitative study and a quantitative study. Qualitative data have been collected from six multi-cases in different industries. Questionnaire data have been collected from 259 SMEs in China, and a multiple regression model is used to verify the research hypotheses.FindingsThe findings indicate that, in supply chain financing, both exploitative innovation and exploratory innovation are helpful in improving the SCFP of SMEs. For resource-constrained SMEs, a relative balance between exploitative innovation and exploratory innovation can help improve SCFP. The breadth of digital technology deployment can strengthen the relationship between exploitative innovation and SCFP, while the depth of digital technology deployment can weaken the relationship between exploratory innovation and SCFP. In addition, increasing the depth of digital technology deployment strengthens the positive correlation between the relative balance of ambidextrous innovations and SCFP.Practical implicationsTo effectively obtain supply chain financing, SMEs can either concentrate their limited resources on a single type of innovation or use relative balance strategies to simultaneously pursue two innovations. In addition, in the process of obtaining supply chain financing by ambidextrous innovations, SMEs should appropriately deploy digital technologies.Originality/valueThis study first deconstructs the impact mechanism of ambidextrous innovation capabilities on SCFP based on signaling theory, and then discusses the balancing effect of ambidextrous innovations on SCFP in the cases of resource-constrained SMEs. This study also goes further and finds the negative moderating effect of digital technology deployment in the process of supply chain financing.

The effects of fintech development on financing constraints of small and medium‐sized enterprises—Evidence from China

AbstractBased on the data of listed small and medium‐sized enterprises (SMEs) from 2011 to 2020, this paper studies the effects of fintech on the financing constraints of SMEs in China. The results denote that fintech can significantly ease financing constraints of SMEs; with a 1% increase in fintech, the financing constraints of SMEs decrease by 0.0767%. The intermediary mechanism analysis illustrates that fintech can ease the financing constraints of SMEs by alleviating financial industry concentration and information asymmetry. Besides, regions with a higher degree of marketization and industries with relatively free competition are both more conducive to fintech alleviating the financing constraints of SMEs.

Entrepreneurial Capabilities and SME Growth in China: A Dynamic Perspective

This conceptual analysis explores the factors influencing the growth performance of small and medium-sized enterprises (SMEs) in China, with a focus on entrepreneurial capabilities. It provides an overview of SMEs in China, emphasizing their significance in the country's business landscape. The study underscores the importance of entrepreneurial capabilities in fostering SME growth and highlights key capabilities required for success in the Chinese context. Furthermore, it discusses the dynamic perspective in understanding SME growth, considering the evolving nature of entrepreneurial capabilities and their interaction with external factors over time. The analysis also incorporates case studies and empirical evidence to support the relationship between entrepreneurial capabilities and SME growth in China. The paper concludes by discussing implications for researchers, policymakers, and SME owners, and suggests future research directions to further explore the dynamic perspective on SME growth in China.

Development Environment and SWOT Analysis of Biomedical SMEs after COVID-19: Evidence from China

After the outbreak of the COVID-19, biomedical companies are facing good development opportunities. However, under the background of the country’s strong support for the development of the biomedical industry, small and medium-sized enterprises (SMEs) in biomedical industry will face new competitive challenges. Therefore, in this research, the industrial development analysis, Porter’s five forces analysis model and SWOT analysis model were applied in exploring the development environment and industrial competitiveness of biomedical SMEs. From the results and discussions of this study, it is not difficult to find that China is experiencing a social change of decreasing birth population and aging population, and the biomedical industry needs to make timely strategies accordingly. Meanwhile, due to the increasing per capita medical and health expenditure, it is a rare opportunity for the biomedical companies to promote the prosperity and development of this industry. This study also analyzes the current development problems faced by the biomedical SMEs in China, which provides useful reference for relevant enterprises and policy makers.

The Impact Mechanism of Blockchain Technology on Financing Constraints from the Perspective of High-Quality Enterprise Development

Small and medium-sized enterprises (SMEs), as an important part of the national economy, often encounter some financing difficulties due to their small scale and poor ability to withstand risks, which restrict the sustainable development of China. With the advancement of technology, blockchain technology is gradually applied to various industries, which to a certain extent alleviates the financing constraints of SMEs. The article discusses the role of applying blockchain technology in enterprise financing constraint mechanism from the perspective of high-quality enterprise development, and analyzes the causes of the current financing difficulties of SMEs in China, after which the mechanism of blockchain technology's influence on financing constraint is analyzed, and finally gives countermeasures of blockchain technology to alleviate financing constraint from the perspective of high-quality enterprise development.

Social networks and ambidextrous innovation in SMEs: the mediating role of dynamic capabilities and the moderating role of technological turbulence

ABSTRACT This study examines the role of social networks on SMEs (Small- and medium-sized enterprises)’ ambidextrous innovation and discusses the mediating effect of dynamic capabilities and the moderating effect of technological turbulence from the perspectives of social network theory and dynamic capability theory. Empirical data were garnered from a sample of 494 SMEs in China and structural equation modelling was used to test the proposed relationships. The results show that: (1) both dimensions of the social networks (relational and structural networks) have a positive impact on SMEs’ exploratory innovation(ERI) and exploitative innovation(EII) – the relational networks(RNs) have a stronger impact on SMEs’ EII while the structural networks(SNs) have a stronger impact on SMEs’ ERI; (2) dynamic capabilities play a mediating role between RNs, SNs and SMEs’ ERI, EII; (3) technological turbulence positively moderates the dynamic capabilities – ERI relationship, while not moderates the dynamic capabilities – EII relationship; (4) the indirect effects of RNs and SNs on ERI via dynamic capabilities is moderated by technological turbulence, while the indirect effects of RNs and SNs on EII via dynamic capabilities is not moderated by technological turbulence.

Is inventory performance helping to improve SME credit ratings? The moderating role of supply chain concentration

ABSTRACT This study examines the relationship between inventory performance and credit ratings and explores how this relationship is affected by supply chain concentration in the context of small- and medium-sized enterprises (SMEs). Financial indicators and bond rating data for SMEs in China’s manufacturing sector are obtained from two large public data sources, and hierarchical ordered logistic regression analysis is used to investigate our research questions. The findings show that inventory performance is positively associated with SME credit ratings and that this relationship is positively moderated by customer concentration but negatively moderated by supplier concentration. This study provides valuable theoretical contributions to the interface of supply chain and finance research and offers important managerial implications that SMEs can follow to increase their credit ratings.

Can SMEs' quality management promote supply chain financing performance? An explanation based on signalling theory

PurposeThe purpose of this study is to examine how the quality management of small and medium-sized enterprises (SMEs) impacts their supply chain financing performance (SCFP). This study also investigates the mediating roles of organisational dependence between quality management and the SCFP of SMEs, as well as the moderating role of environmental dynamics.Design/methodology/approachQuestionnaires were administered to 248 financial managers responsible for supply chain finance (SCF) in SMEs in China. Data analysis techniques used include necessary condition analysis and multiple regression analysis.FindingsResearch findings show that, in SCF, the quality management of SMEs positively predicts their SCFP through the mediation of the organisational dependence of the focal enterprises in the supply chain network. Environmental dynamics are also found to moderate the relationship between quality management and SCFP through the organisational dependence of capital providers.Originality/valueTo the best of our knowledge, this is the first study to explore the relationships between SMEs' quality management and their SCFP. Also, this study provides a new theoretical lens through which to study SCF by introducing signalling theory.

Assessing the Influence of Green Innovation on the Market Performance of Small- and Medium-Sized Enterprises

Green innovation is a significant component of high-value growth closely linked to China’s 14th five-year plan. This research investigates the influence of green innovation on the market performance of small- and medium-sized enterprises (SMEs). The results are based on the primary data gathered via an online questionnaire survey from 453 respondents working for SMEs in China. The structural equation modeling approach is used for data analysis purposes. The research findings highlight that green innovation positively impacts marketing and products. In turn, marketing innovation positively influences product innovation and market performance, and product innovation also significantly boosts market performance. The study’s findings lead us to suggest that organizations in developing countries should focus on SMEs’ green innovation, which will support them in achieving an effective market performance. The study’s limitations are noted so the findings can be interpreted with caution, and directions for future research are outlined for all stakeholders.

Entrepreneurial mindfulness and organizational resilience of Chinese SMEs during the COVID-19 pandemic: The role of entrepreneurial resilience.

Organizational resilience is vital to the survival and thriving of enterprises, especially during the COVID-19 pandemic. Although there has been an increasing interest in organizational resilience, the effects from the entrepreneur perspective receive scant attention. Based on upper echelons theory (UET) and personality psychology, we propose a model in which entrepreneurial mindfulness and entrepreneurial resilience could influence organizational resilience of SMEs. We empirically analyzed a sample of 180 entrepreneurs managing small- and medium-sized enterprises (SMEs) in China during the COVID-19 pandemic, using SmartPLS software. The research findings indicated that entrepreneurial mindfulness is positively associated with organizational resilience and such relationship is partially mediated by entrepreneurial resilience. These findings convey important theoretical implications in this field of research as well as practical implications for SMEs in China or other countries with similar nature.