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The impact of sub-national institutions on SMEs' diversification into new businesses: evidence from China.
- Source :
- Entrepreneurship & Regional Development; Jun2020, Vol. 32 Issue 5/6, p389-407, 19p, 3 Charts
- Publication Year :
- 2020
-
Abstract
- This study explores how sub-national institutions affect the diversification of small and medium-sized enterprises (SMEs) into new businesses. Using a sample of 3240 SMEs in China, we found that the dominance of state-owned enterprises (SOEs) and the development of market systems in a province were related to local SMEs' diversification. Specifically, in provinces dominated by SOEs, SMEs were less likely to diversify into new businesses. The development of market systems tended to reduce the odds of diversification for SMEs that primarily served local markets, and lower the likelihood of unrelated diversification. As a rare attempt to examine the impact of sub-national institutions on SMEs' diversification, this study contributes to the research on diversification, institutions, and SME management. [ABSTRACT FROM AUTHOR]
- Subjects :
- SMALL business
GOVERNMENT business enterprises
SYSTEMS development
Subjects
Details
- Language :
- English
- ISSN :
- 08985626
- Volume :
- 32
- Issue :
- 5/6
- Database :
- Complementary Index
- Journal :
- Entrepreneurship & Regional Development
- Publication Type :
- Academic Journal
- Accession number :
- 143635865
- Full Text :
- https://doi.org/10.1080/08985626.2019.1640444