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China goes global: public policies' influence on small- and medium-sized enterprises' international expansion

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Listed:
  • Guillermo Cardoza
  • Gaston Fornes
  • Ping Li
  • Ning Xu
  • Song Xu

Abstract

Despite small- and medium-sized enterprises' (SMEs) significant contribution to China's social and economic development, very little has been written about the influence that public policies (i.e. public funding priorities and regulatory measures) may have on the first stage of international expansion of Chinese SMEs. To help fill this gap, the article analyses five main factors related to public policies and services affecting Chinese SMEs' internationalization: access to public financial resources; participation of the government in ownership; access to public procurement contracts; adverse regulatory and inconsistent legal frameworks; and public assistance on information and knowledge about markets. The main conclusion is that SMEs appear to base their international expansion on private capabilities, rather than on support from the government; in addition, the perceived barriers for the international expansion of these firms may be mainly internal, rather than institutional.

Suggested Citation

  • Guillermo Cardoza & Gaston Fornes & Ping Li & Ning Xu & Song Xu, 2015. "China goes global: public policies' influence on small- and medium-sized enterprises' international expansion," Asia Pacific Business Review, Taylor & Francis Journals, vol. 21(2), pages 188-210, April.
    • Handle: RePEc:taf:apbizr:v:21:y:2015:i:2:p:188-210
    DOI: 10.1080/13602381.2013.876183
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    References listed on IDEAS

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    1. Gastón Fornés & Alan Butt Philip, 2012. "Emerging Markets: The Markets of the Future," Palgrave Macmillan Books, in: The China-Latin America Axis, chapter 2, pages 5-26, Palgrave Macmillan.
    2. Gastón Fornés & Alan Butt Philip, 2012. "The China-Latin America Axis," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-36341-0, December.
    3. Fornes, Gaston, 2012. "Emerging Markets: The Markets of the future," MPRA Paper 42315, University Library of Munich, Germany.
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    Cited by:

    1. Xiaoli Wang & Yun Liu & Yanbing Ju, 2018. "Sustainable Public Procurement Policies on Promoting Scientific and Technological Innovation in China: Comparisons with the U.S., the UK, Japan, Germany, France, and South Korea," Sustainability, MDPI, vol. 10(7), pages 1-27, June.
    2. Jaeyoung Cho & Jangwoo Lee, 2018. "Internationalization and performance of Korean SMEs: the moderating role of competitive strategy," Asian Business & Management, Palgrave Macmillan, vol. 17(2), pages 140-166, April.
    3. Deng, Ping & Zhang, Shuo, 2018. "Institutional quality and internationalization of emerging market firms: Focusing on Chinese SMEs," Journal of Business Research, Elsevier, vol. 92(C), pages 279-289.
    4. Yan, Hongmin & Hu, Xiaowen & Liu, Yulong, 2020. "The international market selection of Chinese SMEs: How institutional influence overrides psychic distance," International Business Review, Elsevier, vol. 29(4).
    5. Zhang, Man & Merchant, Hemant, 2020. "A causal analysis of the role of institutions and organizational proficiencies on the innovation capability of Chinese SMEs," International Business Review, Elsevier, vol. 29(2).
    6. Zaisheng Zhang & Meng Liu & Qing Yang, 2021. "Examining the External Antecedents of Innovative Work Behavior: The Role of Government Support for Talent Policy," IJERPH, MDPI, vol. 18(3), pages 1-17, January.

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