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When Size Does Matter. Trends of SMEs Internationalization Strategies in Chinese Economy

Author

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  • Andrea Pontiggia

    (Dept. of Management, Università Ca' Foscari Venice)

  • Tiziano Vescovi

    (Dept. of Management, Università Ca' Foscari Venice)

Abstract

The strategies of internationalization have been one of hottest topics in managerial literature in the last decade. Interestingly to notice how deep and unexpected changes have challenged the mainstream of international management theories. This paper illustrates a framework and some preliminary results aim to comprehend how and why MMNEs (Medium-size Multinational Entreprise) internationalization strategies deviate from the more established strategies of multinational and global companies (MNC). We study a sample of Italian SMEs, analyzing the strategy choice and the governance models adopted in China businesses. Qualitative analysis highlights both the feasibility and sustainability of governance models (criteria and components) and forms (model execution and implementation). This paper investigates the specificities of SMEs: The adaptation process and, in some cases, the innovative governance forms analyzed in our sample of cases (described in the paper) are strongly affected by the following factors: first, the size does not fit the potential or actual dimension of market (size factor); Second, increasing difficulties to access to the countries? institutional externalities and strong reliance on the efficiency of markets in order to purchase product and services which they can not internalize (make or buy factor);. Third, negative effects of size preventing to reach arrangements with local and national government (government and local shareholders factor); Fourth, being part of the supply chain of larger firms (MNC) is a common entry mode in Chinese market. Last factor refers to the lack of resources (human, market and relational capital).

Suggested Citation

  • Andrea Pontiggia & Tiziano Vescovi, 2013. "When Size Does Matter. Trends of SMEs Internationalization Strategies in Chinese Economy," Working Papers 28, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    • Handle: RePEc:vnm:wpdman:64
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    References listed on IDEAS

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    Cited by:

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    2. Šárka Zapletalová, 2016. "Competitive Strategies: A New Perspective on the Internationalization of the Czech Enterprises," Working Papers 0035, Silesian University, School of Business Administration.

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    More about this item

    Keywords

    International Management; Emerging Economies and Markets; International Marketing Strategies; Small and Medium Enterprises.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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