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In Search of Legitimacy: The Private Entrepreneur in China

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  • Eric W. K. Tsang

Abstract

Private business is booming in China and the entrepreneurial spirit sweeps through the country. However, the apparent contradiction between Marxist ideology and private ownership has not been satisfactorily resolved. The ideological problems of labor exploitation and income polarization associated with private business have serious repercussions on policy implementation and have constrained the entrepreneurial development. Operating in a hostile institutional environment, many private entrepreneurs in China demonstrate some peculiar behavior seldom found In other countries. By using the concept of legitimacy, it is argued here that the entrepreneurs behavior is the result of their strategic responses to their less-than-legitimate status.

Suggested Citation

  • Eric W. K. Tsang, 1996. "In Search of Legitimacy: The Private Entrepreneur in China," Entrepreneurship Theory and Practice, , vol. 21(1), pages 21-30, October.
    • Handle: RePEc:sae:entthe:v:21:y:1996:i:1:p:21-30
    DOI: 10.1177/104225879602100102
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    References listed on IDEAS

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    1. Hisrich, Robert D. & Grachev, Mikhail V., 1993. "The Russian entrepreneur," Journal of Business Venturing, Elsevier, vol. 8(6), pages 487-497, November.
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    Cited by:

    1. Zhang, Hongjuan & Young, Michael N. & Tan, Justin & Sun, Weizheng, 2018. "How Chinese companies deal with a legitimacy imbalance when acquiring firms from developed economies," Journal of World Business, Elsevier, vol. 53(5), pages 752-767.
    2. Majid Ghorbani & Michael Carney, 2016. "The changing face of China’s billionaire-entrepreneurs," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 881-902, December.
    3. Law, Kris M.Y. & Gunasekaran, Angappa, 2012. "Sustainability development in high-tech manufacturing firms in Hong Kong: Motivators and readiness," International Journal of Production Economics, Elsevier, vol. 137(1), pages 116-125.
    4. Ahlstrom, David & Bruton, Garry D. & Yeh, Kuang S., 2008. "Private firms in China: Building legitimacy in an emerging economy," Journal of World Business, Elsevier, vol. 43(4), pages 385-399, October.
    5. Sunny Sun & Xiaoming Yang & Weiwen Li, 2014. "Variance-enhancing corporate entrepreneurship under deregulation: An option portfolio approach," Asia Pacific Journal of Management, Springer, vol. 31(3), pages 733-761, September.
    6. Tse, Caleb H. & Yim, Chi Kin Bennett & Yin, Eden & Wan, Feng & Jiao, Hao, 2021. "R&D activities and innovation performance of MNE subsidiaries: The moderating effects of government support and entry mode," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    7. Zhang, Yanlong & Zhao, Wei & Ge, Jianhua, 2016. "Institutional duality and political strategies of foreign-invested firms in an emerging economy," Journal of World Business, Elsevier, vol. 51(3), pages 451-462.
    8. Justin Tan, 2002. "Culture, Nation, and Entrepreneurial Strategic Orientations: Implications for an Emerging Economy," Entrepreneurship Theory and Practice, , vol. 26(4), pages 95-111, July.
    9. Peng, Mike W. & Lu, Yuan & Shenkar, Oded & Wang, Denis Y. L., 2001. "Treasures in the China house: a review of management and organizational research on Greater China," Journal of Business Research, Elsevier, vol. 52(2), pages 95-110, May.
    10. Garry D. Bruton & Shaker A. Zahra & Li Cai, 2018. "Examining Entrepreneurship Through Indigenous Lenses," Entrepreneurship Theory and Practice, , vol. 42(3), pages 351-361, May.
    11. Tu LYU & Xiangfeng JI, 2020. "A Meta-Analysis on the Impact of Social Capital on Firm Performance in China’s Transition Economy," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    12. Guo, Hai & Xu, Erming & Jacobs, Mark, 2014. "Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms," Journal of Business Research, Elsevier, vol. 67(2), pages 116-127.
    13. David Ahlstrom & Garry D. Bruton, 2002. "An Institutional Perspective on the Role of Culture in Shaping Strategic Actions by Technology-Focused Entrepreneurial Firms in China," Entrepreneurship Theory and Practice, , vol. 26(4), pages 53-68, July.
    14. Haizhen Wang & Jie Feng & Xinmei Liu & Ruoyong Zhang, 2011. "What is the benefit of TMT’s governmental experience to private-owned enterprises? Evidence from China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 555-572, September.
    15. Ying Chen & David Touve, 2011. "Conformity, political participation, and economic rewards: The case of Chinese private entrepreneurs," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 529-553, September.
    16. Qiang Ma & Xueling Li & Peggy E. Chaudhry & Sohail S. Chaudhry, 2020. "Public relations and legitimacy: A study of new ventures on the corporate life cycle," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(4), pages 699-710, July.

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