Abstract

Entrepreneurs play a focal role in a society's economic recovery from major disruptions such as the COVID-19 pandemic. We argue that entrepreneurs' ability to identify and act on entrepreneurial opportunities during the crisis reflects their resilience, and their innovations facilitate new patterns of work, learning, and leisure activities in post-COVID-19 societies. However, how, how quickly they act, and how influential their actions are depends on their context in terms of institutions, resource access, and market volatility. In China, some entrepreneurs have shown great resilience by utilizing network relationships and digital technology, not only to overcome short-term disruptions in 2020 but to shape the evolving 'new normal' where behaviors and capabilities have changed as a consequence of the experience of the pandemic. We discuss drivers of such resilient entrepreneurship during the COVID-19 pandemic in China and call for further research on the interplay between external disruptions, different types of entrepreneurship, and the consequences for resilience in emerging economies.

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Abstract

This paper offers preliminary ideas on egocentric network dynamics associated with a new venture partnering with a large ecosystem hub firm. Such a perspective is appropriate since achieving value creation through active partnering requires building and strengthening ties over time across the hub firm's ecosystem.

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Co-creation ;  Ecosystem ;  Innovation ;  Network oscillation ;  New venture

Abstract

Partnering with startups is an important way by which large multinational corporations (MNCs) pursue open innovation. This article sheds light on distinctive startup partnering strategies across multiple locations. These vary in terms of institutional strength (advanced vs. emerging markets) and local reputation in a given sector (cluster vs. non-cluster). Different partnering strategies are appropriate for each location type: a template-based or purpose-built approach (in clusters vs. non-clusters, respectively), and a facilitative or directive approach (in advanced vs. emerging markets, respectively).

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partnerships ;  startup ;  global collaboration ;  multinational corporations ;  innovation ;  open innovation ;  emerging markets

Abstract

We provide an integrative account of how springboarding emerging market multinational enterprises (EMNEs) traverse the distinct contexts of their home and host markets by synthesizing the composition-based view with the Springboard Perspective to offer a novel, holistic, and dynamic Compositional Springboarding Perspective of EMNE evolution. We argue that EMNE internationalization entails a meta-duality between a compositional logic (home market) and springboarding logic (host market), and that the capabilities associated with springboarding - amalgamation, ambidexterity, and adaptability - help balance these two logics' interplay and integration. We elaborate on the differential roles that these capabilities play across the upward spiral's five stages (the process of EMNE evolution), which have differing emphases in terms of these logics.

Keyword

ambidexterity; composition-based view ;  emerging economies ;  emerging market multi-nationals ;  emerging markets ;  internationalization ;  organization learning ;  springboard perspective ;  unlearning

Abstract

This case describes the process of entering the Chinese market by Capillary Technologies, an Indian software company that provides cloud-based omnichannel customer engagement and related services for retailers and brands. Capillary represents a high level of ambition: in a country that was well known for software service companies (based primarily on labor cost advantages), it was founded as a business-to-business (B2B) software product company (thus one developing intellectual property). After entering several Western markets, which was consistent with the venture's lofty aspirations, the venture's leadership came to the view that the firm was better placed to pursue Asian markets. The new venture relocated its headquarters from India to Singapore, and made strong efforts to gain revenue in the Asia region — including the large but intensely competitive Chinese market. The case describes how, under the leadership of its China General Manager based in Shanghai, Capillary Technologies started off by working with Western multinationals that were its customers in other markets, then began attracting local customers as it established a Chinese technology team to cater to the unique technological ecosystems prevalent in China. Over a three-year period, Capillary achieved 200% growth per annum. The case concludes by noting the opening of a new office in Guangzhou as Capillary seeks to further deepen its presence in the Chinese market.

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Chinese market ;  Customer Relationship Management System ;  indian startup ;  learning orientation ;  Localization

Abstract

Should innovation come from within the company or from without? The answer is both.

Keyword

Collaboration ;  Employees ;  Empowerment ;  Entrepreneurs ;  Innovations ;  Intrapreneurs ;  Partnering ;  Startups

Abstract

Using survey data from China and India, we explore the impact of network strategy of new ventures in emerging markets. We focus on two critical dimensions of network strategy, namely, broadening and deepening the network and two types of knowledge: market knowledge and technological knowledge. We find that proactive network deepening is associated with market knowledge and network broadening with technological knowledge. From a network perspective, our work highlights the counterintuitive outcomes of breadth versus depth orientation in network strategy, highlighting differences between advanced and emerging economies. We use a post-hoc multi-group analysis to show the differences even within the two emerging markets: India and China. The direct effect of partnering proactiveness on market knowledge in India is significantly higher than that in China but there is no significant difference as to the effect of technological knowledge. We use this exploratory study to highlight the opportunities for network and entrepreneurship scholars to study emerging markets and, in particular, undertake comparative studies between new ventures in China and India.

Keyword

China ;  emerging market ;  entrepreneurship ;  India ;  knowledge ;  networks ;  new venture

Abstract

Although international business scholars have begun to recognize the division of entrepreneurial labor between MNEs and SMEs, there is a fragmented understanding of the different forms MNE–SME cooperation can take. We develop a typology that takes into account not only complementarity of capabilities but also, crucially, the compatibility of intent between MNEs (exploration vs. exploitation) and SMEs (international vs. domestic orientation). The framework offers a novel way to understand the forms and dynamics of MNE–SME cooperation. We also show how it can be applied more broadly, by considering its application to societal challenges, such as achieving the United Nations’ Sustainable Development Goals.

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global innovation ;  global value chain ;  interorganizational relationships ;  MNE-SME cooperation ;  SME internationalization ;  Sustainable Development Goals

Abstract

We investigate the role of high distance in trust erosion between small partners. High distance is known to hinder the formation of trust between potential partners, but its role in trust erosion in established partnerships is less understood by international business scholars. Through a qualitative longitudinal study, we extend current theory of how high distance affects the trust dynamics between cross-border partners. Specifically, we unearth three interrelated mechanisms that together explain how and why trust can erode due to high distance. We show that, before a partnership is formed, high distance can lead partners to erroneously attribute cues to a potential partner's high quality, leading to over-expectations of partner performance. Once the partnership is operational, high distance hinders actors' ability to understand situational factors associated with disappointing outcomes, and so they are attributed to failings of the partner. At the same time, distance-related challenges of bounded reliability render partners reluctant to discuss partnership outcomes. This can result in a vicious cycle of inertia as partners strive to protect goodwill while abandoning efforts to produce partnership outcomes because of doubts of the other's quality. Thus, our theoretical model illustrates the limitations of trust and explains how, paradoxically, high distance can facilitate both trust formation and trust erosion.

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Case theoretic approaches ;  China ;  Longitudinal ;  Process model ;  Small and medium-sized enterprises ;  Trust ;  Trust erosion

Abstract

This case deals with the choice of growth strategy for a Chinese IoT (Internet of Things) start-up, Ace Company (Ace). Ace was founded in February 2015 by Ren (CEO), Zhang (CTO), and Jin (CMO), with the initial purpose of solving the pain points of the IoT industry by providing an unprecedented universal IoT operating system. Since its core product, Ace OS 1.0, was officially released in May 2016, more than 10,000 developers have joined Ace’s platform, and dozens of companies have applied Ace’s IoT technologies and solutions. Having proven the technical viability and market acceptability of its offering, Ace has to decide how to scale up, especially as it has received Series A investment of ￥21 million. However, there is a dispute between the CTO and the CEO: Zhang insists on extending Ace’s business to as many industrial scenarios and companies as possible, while Ren insists that Ace should focus on and penetrate deeply into a few industries. Jin is stuck in the middle and wants to know which path they should choose. The dilemma faced by Ace is typical for a start-up that has succeeded in the entrepreneurial stage and needs to develop a growth strategy. The co-founders have different perspectives and it is hard to reach a consensus. The case also reflects the features of an emerging market (China) and the challenges and opportunities within.

Keyword

growth strategy ;  Internet of Things (IoT) ;  New Startup