Start-ups In China Research Articles

Navigating uncertainty: configurations of entrepreneurial behaviors for new venture performance

Purpose The entrepreneurial process often cannot be explained by a single entrepreneurial theory. Instead, it is more likely the result of the interaction between various entrepreneurial behavior patterns and different environmental conditions. However, existing research has frequently overlooked the complexity inherent in the entrepreneurial phenomenon. Building on a configurational perspective, this study aims to examine how new ventures can use different behavioral configurations to achieve high performance amid various uncertain environments. Design/methodology/approach Based on the survey data from 143 new start-ups in China’s software industry, this study uses fuzzy-set qualitative comparative analysis (fsQCA). Findings This study jointly considers multiple entrepreneurial behaviors − causation, effectuation and entrepreneurial bricolage and different types of environmental uncertainty − state uncertainty, effect uncertainty and response uncertainty. The findings reveal three behavioral configurations for high/nonhigh new venture performance. Originality/value This study expands previous insights into the relationship between entrepreneurial behaviors and new venture performance from the perspective of configurational theory. Moreover, it offers new insights into the types of uncertainty, further refining our understanding of the uncertainties inherent in entrepreneurial activities.

Factors influencing high-tech startup business model innovation in China: A systematic literature review

Business model innovation (BMI) has garnered substantial academic and corporate attention in recent decades. Researchers have not yet agreed on the most complicated BMI practices in the high-tech startups (HTS). Despite being the second-biggest economy in the world today, China has done little research on the practice of business model innovation in China’s high-tech startups. This study addresses the factors that impact the business model innovation of high-tech startups in China. Our study aims to fill the research gap by visualising and analysing, using systematic literature review (SLR) analyses and reviewing 36 in-depth articles, from 688 academic literature sources. Relevant publications from Scopus, Springer, ScienceDirect, Web of Science, IEEE Xplore, and the JDM e-library expose the current research status from 2013 to December 2023 without bias. We conducted a literature-based investigation to identify essential insights on the BMI factors in the literature and derived a high-tech startup’s BMI critical factor. Our study shows that three main factors affect the innovation of business models in high-tech startups in China. The findings raise managers’, entrepreneurs’, and executives’ knowledge of corporate resource bricolage and cognitive style constraints in business model innovation and their pros and cons. The findings will help Chinese academics understand enterprises’ institutional environment and resource bricolage as final suggestions and proposals for corporates, regulators, and policymakers are presented.

Impact of the digital entrepreneurial ecosystem on startup performance: An empirical study from China

Digital innovation and entrepreneurship activities are quite active and developing rapidly in China. However, the ways in which digital startups can efficiently utilise digital entrepreneurship ecosystems (DEEs) to improve their entrepreneurial performance remains unclear. To address this question, this study analysed data from 206 digital start-ups in China and found: 1) Ecological niche and ecological relationship significantly contribute to digital entrepreneurial performance. 2) Resource bricolage and opportunity iteration have a chained mediating effect between DEE and digital entrepreneurial performance. 3) Digital capability has a positive (negative) moderating effect between ecological relationship and resource bricolage (opportunity iteration). Finally, this study explores the implications of these findings and future research directions.

The lagged effect of university-based entrepreneurship education on employees' retention at entrepreneurial startups

This study explores the lagged effect of university-based entrepreneurship education on employees' retention at entrepreneurial startups in China. Combining insights from social learning theory and the attraction-selection-attrition framework, it is argued that university-based entrepreneurship education can shape individuals' protean career attitudes and behaviors over time in their following career development. To test the hypotheses, we took a two-stage survey on-site and online, respectively, of a sample of employees working in startups in three entrepreneurial incubators in China. Taking hierarchical multiple regression and bootstrapping analyses, the empirical results of the final 274 sample show that entrepreneurship education can significantly improve an employee’s intention to remain at a startup and that this is mediated by protean career attitudes. Meanwhile, socialization tactics can strengthen the mediating effects of protean career attitudes. These findings further verify the lagging effect of entrepreneurship education in colleges and universities, which can provide useful inspiration for entrepreneurship education and the management of employees at startups.

Attitude towards entrepreneurship, individual entrepreneurship orientation and entrepreneurial self-efficacy among start-ups in China: Basis for entrepreneurial competency framework

Attitude towards entrepreneurship, individual entrepreneurship orientation and entrepreneurial self-efficacy among start-ups in China: Basis for entrepreneurial competency framework

Institutional logics and organizational filters: Differential responses to innovation and environmentalism in China’s cleantech sector

While the institutional logics perspective has been applied to explore various empirical contexts, less is known about how different organizations respond differentially to the pressures that are imposed by logics. We investigate how different organizational attributes moderate institutional logics differently by using a proprietary dataset of venture capital and private equity (VC/PE) investment in cleantech startups in China. We first delineate two distinct logics—market and proenvironmental—that shape VC/PE investment across different regions. Moreover, we identify two organizational attributes—state ownership and business model—which moderate the two logics differently. Whereas the business model of venture investment firms (VC vs. PE) effectively resonates with the market logic, state ownership fails to make a firm more attentive to either of the logics. We contribute to the logics perspective by complementing our understanding of organizational filters, showing the relationships between two distinct logics and cleantech investment, and extending the study of logics to authoritarian contexts.

The impact of incubator network strategy on the entrepreneurial performance of start-ups: a resource bricolage perspective

ABSTRACT In the realm of entrepreneurship, incubators have emerged as indispensable facilitators, serving as crucial avenues for entrepreneurs to establish external network connections and secure access to vital resources. This study draws upon the principles of social network theory and employs hierarchical regression analysis. The primary focus of our investigation is to elucidate how incubators' network-building endeavors exert a substantial influence on the entrepreneurial performance of start-ups, from the perspective of resource bricolage. Our research examined a sample of 465 start-ups in China. The empirical findings that have emerged from our study reveal the positive impact of incubator network building on the entrepreneurial performance of start-ups. Importantly, this impact is not isolated but instead is partially mediated through the lens of resource bricolage, highlighting the innovative use of available resources. Furthermore, we shed light on the moderating role of network proactiveness, revealing its positive influence on the relationship between incubator network building and the resource bricolage employed by start-ups. This study significantly enriches the existing body of knowledge by advancing our comprehension of the intricate mechanisms governing the incubator start-ups dynamic. It contributes to a deeper understanding of how diverse incubator network mechanisms shape the accumulation of resources and capabilities within start-ups, shedding new light on the path to entrepreneurial success.

How do innovative internet tech startups attract venture capital financing?

Abstract This research uses signaling theory to combine the perspective of investment results with existing venture capital (VC) standards and reexamines the factors that influence the attractiveness of innovative internet tech startups to VC from the perspective of equal opportunity startups. Taking the financing status of 310 startups in China's sharing economy as an example and using regression analysis, we empirically test the influence of entrepreneur and firm characteristics on attracting VC. Our results show that among founder characteristics, the entrepreneur's entrepreneurial experience alone is insufficient to attract VC. Industrial experience and political background have a positive influence on attracting VC. Among firm characteristics, market-entry order and business group (BG) affiliation positively influence attracting VC. This is a new and relevant discovery. In the Chinese market, investors are more inclined to provide financial support to entrepreneurs or startups that have already gained legitimacy from the government or business groups.

Mitigating information asymmetry to acquire venture capital financing for digital startups in China: The role of weak and strong signals

AbstractThis paper addresses how weak and strong signals affect venture capital funding acquired by digital startups at their early stage in various industries of China. We also articulate the interaction mechanism of these strong and weak signals by demonstrating their complementary or substitutive effects in alleviating information asymmetry on startup quality, which can help digital startups secure venture capital financing. Drawing on signalling theory and institutional legitimacy theory, we introduce application (app) downloads as a novel strong signal that can reduce market legitimacy concerns, and previous‐round venture capitalist reputation as a traditional strong signal that mitigates regulatory legitimacy concerns. We treat founders' startup and IT experience as weak signals, as they provide rhetorical and indirect information indicating a startup's potential to establish regulatory and market legitimacy. The study empirically investigates our hypotheses using data of 163 digital startups in various industries of China. Results confirm the positive relationships between strong signals and venture capital funding secured by a digital startup. Furthermore, signals of similar strength are found to complement each other's effects in certain situations, while strong signals can reduce the effects of weak signals on a digital startup's financing performance under specific conditions that create these mixed effects. Implications for digital startup research and practice as well as limitations and suggestions for future research are discussed.

The role of bricolage in countering resource constraints and uncertainty in start-up business model innovation

PurposeDrawing from resource orchestration theory, this research proposed an integrative model that leverages insights into counter resource constraints and uncertainty in start-up business model innovation (BMI). It investigated the influences of entrepreneurial networks and effectuation on BMI through bricolage in uncertain environments.Design/methodology/approachThe research surveyed 481 start-ups in China. LISREL 8.80 and SPSS 22.0 were employed to test the validity and reliability of key variables, respectively. Additionally, hypotheses were examined through multiple linear regression.FindingsFirst, entrepreneurial networks and effectuation were positively related to BMI, and combining these two factors improved BMI for start-ups. Second, bricolage contributed to BMI and played mediating roles in translating entrepreneurial networks and effectuation into BMI. Third, environmental uncertainty weakened the linkage between bricolage and BMI.Research limitations/implicationsFuture research should replicate the results in other countries because only start-ups in China were investigated in the study, and it is necessary to extend this research by gathering longitudinal data. This research emphasized the mediating effects of bricolage and the moderating influence of environmental uncertainty, and new potential mediating and moderating factors should be explored between resources and BMI.Originality/valueThere are three significant theoretical contributions. First, the findings enrich the literature on the complex antecedents of BMI by combining the impacts of entrepreneurial networks and effectuation. Second, an overarching framework is proposed explaining how bricolage (resource management) links entrepreneurial networks and effectuation and BMI. Third, it demonstrates the significance of environmental uncertainty in the bricolage–BMI linkage, deepening the understanding of the bricolage boundary condition.

Medical institutions in the geography of innovation: evidence from public tertiary hospitals and biotech start-ups in Chinese cities

ABSTRACT Concerning China’s growth in biotechnology, the research on biotech start-ups in China yields significant implications. However, studies have not given enough attention to hospitals, which are critical players in the biotech industry. Because of the hospital-centric healthcare system, public tertiary hospitals in China are important partners for biotech start-ups. This study investigates the geographical relationship between public tertiary hospitals and biotech start-ups in Chinese cities. The findings suggest evidence of collocation, which reflects their alliances. This research thereby contributes to the existing knowledge of the biotech industry by integrating the healthcare system into the location of biotech firms.

Bribery, female-led start-ups and product innovation performance in transition economies: the moderating roles of institutional support and self-control

PurposeGiven that women around the world face more exclusion in terms of limited access to economic and innovation activities than men do, it is understandable that some female-led start-ups in weak institutional environments engage in bribery to help reduce the difficulties they encounter in the face of intense business competition. However, the link between bribery and product innovation performance is unclear. The purpose of this study is to investigate the relationship between bribery and product innovation performance for female-led start-ups, as well as the roles of institutional support and self-control in this link.Design/methodology/approachThis empirical study evaluates survey data from female-led manufacturing start-ups in China's Yangtze River Delta region to investigate the relationship between bribery and product innovation performance.FindingsThis research shows that bribery has an inverted U-shaped impact on product innovation performance in female-led manufacturing start-ups, meaning that the product innovation performance of these firms initially increases but then decreases as the bribery intensity (i.e. the frequency and amount of bribes) increases. The authors also focus on the roles of institutional support and self-control in this link, where the authors find that this relationship is steeper for firms with strong institutional support, as well as for individual female entrepreneurs who have high levels of self-control.Practical implicationsThe findings of this study indicate that policymakers should undertake efforts to improve institutional quality (e.g. increasing clarity around decisions, providing more institutional support, etc.) and to guide female entrepreneurs to cultivate higher levels of self-control, as such efforts would reduce the appeal of, and the opportunity for, bribery.Originality/valueTo date, very few studies focus specifically on female-led enterprises in the field of bribery research. The research findings presented here on the effect of bribery in female-led start-ups on firm product innovation performance are useful to researchers, policymakers and businesspeople, as they provide a better understanding of bribery in female-led start-ups in China, which can also be extrapolated to encompass other transition economy contexts.

Returnee entrepreneurs’ effects on external and internal CSR in China: the moderating role of market embeddedness and government endorsement

PurposeLittle attention has been given to the effects of returnee entrepreneurs on external and internal corporate social responsibility (CSR). This study aims to investigate whether returnee entrepreneurs engage in more external or internal CSR and to further explore the contingency effects of foreign market embeddedness and local government endorsement.Design/methodology/approachThis study uses 11,967 startups in China to examine the relationship between returnee entrepreneurs and external and internal CSR. The authors use an ordinary least square regression and propensity scoring matching approach to analyze the data.FindingsThe empirical results show that returnee entrepreneurs are more likely to undertake external CSR but less likely to undertake internal CSR. Foreign market embeddedness and local government endorsement have opposite moderating effects on these relationships.Practical implicationsThis study has important implications for returnee entrepreneurs’ strategic choice between external and internal CSR and also provides theoretical support for policymakers to make effective and enforceable CSR policies.Originality/valueThis study discusses how returnee entrepreneurs implement external or internal CSR in China, answering the call to distinguish between external and internal CSR. Drawing on a legitimacy perspective, the authors find interesting and seemingly counterintuitive effects of returnees on external and internal CSR, which also necessitates distinguishing between these two types of CSR. In addition, the authors find different moderating roles of foreign market embeddedness and local government endorsement.

Challenges for Financing Startups in China: A Quantitative Investigation of Small and Medium Ventures

This research aims to determine the financial obstacles startups face in China. This study will analyze the many different kinds of obstacles that young businesses in China face, and it will also talk about the financial resources that are accessible to young businesses in China. Both topics will be covered in this study. The literature reviewed for this research examines the various difficulties faced by startup businesses from three different vantage points. These are the ailment of venture capital (VC), the difficulties associated with finance for small and medium-sized businesses (SMEs), and the financial issues faced by startup businesses in China. The rapid expansion of new businesses in China has the potential to significantly impact the country's ambitions to become a world leader in scientific discovery and technological innovation. This research also attempts to discover some answers for the new businesses just starting up in China to inspire more young people to get into business for themselves. This article discusses startup firms' financial challenges and the primary financial resources available to them. In order to learn about the elements that affect the difficulties associated with startup funding in China, a survey was conducted with a sample size of 218 participants. According to the research findings, the elements that assist in determining the difficulties associated with funding new businesses in China include the availability of financial resources, support systems and workforces, knowledge, and experience.

Understanding Incubated Startups’ Continuance Intention towards Entrepreneurial Incubation Platforms: Empirical Evidence from China

In recent years, despite the rapid growth in the number of entrepreneurial incubation platforms in China, many of them are experiencing the sustainability dilemma caused by the loss of incubated startups. However, there is a dearth of research that explores how to promote incubated startups’ continuance intention towards entrepreneurial incubation platforms. Addressing this gap, the present study develops a dedication–constraint model based on the dual model framework, investigating the distinct impacts of entrepreneurial support and relationship-specific investment on incubated startups’ continuance intention towards entrepreneurial incubation platforms. A sample of 534 incubated startups in China was employed to test the research model, and the structural equation modelling was adopted for data analysis. Empirical results indicate that the dedication-based mechanism and constraint-based mechanism simultaneously, yet differently, affect incubated startups’ continuance intention towards entrepreneurial incubation platforms. Specifically, in the dedication-based mechanism, social support and technical support are revealed as the antecedents to relationship satisfaction that significantly leads to benefit-based dependence. As for the constraint-based mechanism, setup activity is the only salient indicator to termination costs, which consequently has a positive effect on cost-based dependence. Incubated startups’ continuance intention towards entrepreneurial incubation platforms is influenced by both benefit-based dependence and cost-based dependence, ultimately.

The effects of mindfulness upbringing perception on social entrepreneurship orientation: A moderated mediation model of prosocial motivation and perceived pressure from external stakeholders.

Driven by economic and social benefits, social enterprises create new development models that combine wealth creation, social welfare provision, and environmental improvement through innovative approaches. The social entrepreneurship orientation reflects the behavioral tendency to transplant entrepreneurship orientation into the field of social value creation. It is a strategy to balance and integrate economic interests and social interests, which has a significant impact on social entrepreneurship performance. The purpose of this study is to explore the internal mechanism of the impact of social entrepreneurs’ mindfulness upbringing perception on social entrepreneur orientation. To reveal the internal mechanism, we propose a moderated and mediation model of prosocial motivation and perceived pressure from external stakeholders. In this study, random sampling was conducted among social start-ups in China. In order to improve the accuracy of the scale, a pre-survey was conducted before the formal survey. The data analysis results of the pre-survey showed that the scale in this study was suitable for the Chinese context and had good external validity. Through using survey data from social entrepreneurs in China, hierarchical regression analysis and bootstrapping model are adapted to test and verify mediation and moderation effects. The results show that mindfulness upbringing perception indeed positively influences social entrepreneurship orientation directly and partly through the mediating effect of prosocial motivation. Moreover, findings suggest the perceived pressure from external stakeholders negatively moderates not only the relationship between prosocial motivation and social entrepreneurship orientation but also the overall mediation model. This indicates that social entrepreneurs with low perceived pressure from external stakeholders will improve their social entrepreneurship orientation rapidly when their prosocial level is high. Based on these findings, we conclude that social entrepreneurship orientation may be achieved more effectively through the complex process of mindfulness upbringing perception, prosocial motivation, and perceived pressure from external stakeholders. Finally, the study proposes the theoretical and practical implications and suggestions for follow-up research.

Research on Job Preference in China’s Internet Industry Through the Conjoint Analysis

Internet startups in China are currently facing a severe labor force shortage. The White Paper on Employment Insights in China’s Internet Industry (Enterprise Chapter) has highlighted that labor force distribution in China’s Internet Industry is imbalanced, with 60% of resumes going to 3% of big firms, leaving startups unable to hire enough employees, instead big firms unable to find the suitable staff. This study aims to determine how Internet startups improve their appeal to fill their labor force shortage. We have undertaken a conjoint analysis experiment online with Internet firms in China. Our results indicate that the annual salary is the most essential criteria for respondents when choosing a job, followed by firm size, weekly working hours, location, and team-building activities. There are also distinct preferences among employees. For example, female Internet employees and those with master’s degrees are more sensitive to income fluctuations. On this basis, Chinese Internet startups can attract Internet employees with a cost-effective strategy that combines improved pecuniary conditions and non-pecuniary conditions based on characteristics of different types of employees.

The survival of bike-sharing startups in China: an empirical analysis of the influencing factors

PurposeBike-sharing is popular worldwide, and it has led to a new development direction in green transportation. However, the collapse of many bike-sharing startups and residual social problems has brought about contradictions and challenges to the development of the industry. The purpose of this paper is to determine how internal factors affect the survival of bike-sharing startups.Design/methodology/approachThe authors used binary logit regression as the measurement model to conduct an empirical analysis based on 137 bike-sharing startups in China. The study focuses on using traditional theoretical evidence and considers the uniqueness of the industry to jointly explore the survival factors that influence the emerging business model of bike-sharing.FindingsThe results show that entrepreneurial team size and differentiation strategy positively influence survival. Founder-CEOs have a negative impact on survival. Founders' entrepreneurial experience and venture capital have no significant influence on survival.Originality/valueThe results verify the role of traditional survival factors in the new business model of sharing economy and fill the research gap on the survival strategy of startups. This study offers a unique perspective for researchers to better understand the sharing economy industry and provides practical guidance for entrepreneurs and investors to enter the market.

Matching disruptive innovation paths with entrepreneurial networks: a new perspective on startups’ growth with Chinese evidence

This study examines the impacts of entrepreneurial networks on startups’ performance with a sample of 618 startups in China’s Yangtze River Delta region, focusing on matching disruptive innovation paths with network types. The results indicate that entrepreneurial networks (both heterogeneous and homogeneous) are meaningful for startups’ growth performance. The study finds that startups exploring low-end disruption may benefit more from heterogeneous peers and avoid networking with an abundance of homogeneous peers. However, if exploring new markets, both types of networks could provide positive impacts. The asymmetric mediation effects of disruptive innovation paths highlight the core of leveraging entrepreneurial networks, whether homogeneous or heterogeneous, is to activate network resources with proper disruption paths.

AI start-ups in China

AI start-ups in China