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Table 2 China-related entrepreneurship research: research methods and organization forms. Research themes Subtotal Research methods Organization forms Survey/ quantitative Case study / qualitative Conceptual / overview Private/small business High-tech Township and village SOEs Mixed Management 36 23 2 11 2 3 1 7 23 Market transition/business system change 8 1 7 1 7 Firm strategy/outcome 18 14 1 3 3 1 5 9 Inter-firm relationship/networks 5 5 1 4 Managerial values/traits/behavior 5 4 1 1 1 3 Entrepreneurship and Small Business 32 16 4 12 13 2 3 2 12 Market transition/entrepreneurship development 19 7 1 11 9 2 1 7 Firm strategy/outcome 3 3 1 1 1 Inter-firm relationship/networks 1 1 1 Entrepreneurial values/traits/behavior 9 6 2 1 3 1 5 Total 68 39 6 23 15 5 4 9 35 340 J.Y. Yang, J. Li
The development of entrepreneurship in China 341 corroborates our broad definition of China's entrepreneurship development that manifested inthe beginning of the review In summary,the 68 articles published in the 11 leading English-language joumals over the past 26 years provide us with a snapshot of past and current research interests in the development of entrepreneurship in China.The increasing appearance of such studies in mainstream management and entrepreneurship jourals suggests their value to global scholarship,and research on the development Mapping the contributions of the literature In this section,we summarize the key issues/conclusions of each article under four general research themes across the three levels.Table 3 provides an overview of these studies.Given the integrated nature of many studies,the distinction among these areas is somewhat arbitrary.We believe,however,that such an intuitive clustering would serve as a first step in helping us capture the essence of this literature. Environmental/macro level Most of the environmental/macro studies in the management journals described the transition nature of China's economy (Table 3(Environmental/macro studies)).Of the eight studies identified with the theme of"market transition/business system change",two focused on privatization of China's economy (Dharwadkar,George, Brandes,2000;Ramamurti,2000),three formulated theories on hybrid organiza- tional forms and ownership/pr rights change (Boisot&Child,1988.1996 Nee,1992),one op 00, enges and importance r studying management and organizational issues in the Chi ese context (Shenkar von Glinow,1994;Tsui Schoonhoven,Meyer,Lau,&Milkovich,2002).This line of literature tends to treat "China"as a unique institutional context,encompassing social,political,and economic elements that have impacted the reforms in the state-owned sector and the emergence of private firms.Therefore.economic and macro organization theories such as agency theory (Dharwadkar et al,2000),transaction cost economics(Boiso &Child,1988;Ram e ( uri.2000),stakeholder the e Prabhu,2000),and neoinstitutional Nee 1992)have been mainly employed as explain the above i sues In a sin environmental/macro studies in the entrepreneurship jourals depicted how cultural,political,economic,and other environmental conditions influence the emergence and development of entrepreneurship in China (Table 3 (Environmental/macro studies)).Seven studies presented a historical or comparative review on China's entrepreneurship development(Chang MacMillan. 1991:Fan.1996:Matthews,1996:Tan,2005,2007;Tsang,1996;Wing Yiu, 1996).Two studies highlighted the rtunities and threats faced by entn in China (Tsang,1994:Wing Yiu, Springer
corroborates our broad definition of China’s entrepreneurship development that manifested in the beginning of the review. In summary, the 68 articles published in the 11 leading English-language journals over the past 26 years provide us with a snapshot of past and current research interests in the development of entrepreneurship in China. The increasing appearance of such studies in mainstream management and entrepreneurship journals suggests their value to global scholarship, and research on the development of entrepreneurship in China has attracted growing attention among global scholars. Mapping the contributions of the literature In this section, we summarize the key issues/conclusions of each article under four general research themes across the three levels. Table 3 provides an overview of these studies. Given the integrated nature of many studies, the distinction among these areas is somewhat arbitrary. We believe, however, that such an intuitive clustering would serve as a first step in helping us capture the essence of this literature. Environmental/macro level Most of the environmental/macro studies in the management journals described the transition nature of China’s economy (Table 3 (Environmental/macro studies)). Of the eight studies identified with the theme of “market transition/business system change”, two focused on privatization of China’s economy (Dharwadkar, George, & Brandes, 2000; Ramamurti, 2000), three formulated theories on hybrid organizational forms and ownership/property rights change (Boisot & Child, 1988, 1996; Nee, 1992), one examined the development of financial institutions and its impacts on entrepreneurship activities (George & Prabhu, 2000), and the remaining two studies discussed the challenges and importance of studying management and organizational issues in the Chinese context (Shenkar & von Glinow, 1994; Tsui, Schoonhoven, Meyer, Lau, & Milkovich, 2002). This line of literature tends to treat “China” as a unique institutional context, encompassing social, political, and economic elements that have impacted the reforms in the state-owned sector and the emergence of private firms. Therefore, economic and macro organization theories, such as agency theory (Dharwadkar et al., 2000), transaction cost economics (Boisot & Child, 1988; Ramamurti, 2000), stakeholder theory (George & Prabhu, 2000), and neoinstitutional perspective (Boisot & Child, 1996; Nee, 1992) have been mainly employed as the theoretical perspectives to explain the above issues. In a similar vein, the 19 environmental/macro studies in the entrepreneurship journals depicted how cultural, political, economic, and other environmental conditions influence the emergence and development of entrepreneurship in China (Table 3 (Environmental/macro studies)). Seven studies presented a historical or comparative review on China’s entrepreneurship development (Chang & MacMillan, 1991; Fan, 1996; Matthews, 1996; Tan, 2005, 2007; Tsang, 1996; Wing & Yiu, 1996). Two studies highlighted the opportunities and threats faced by entrepreneurs in China (Tsang, 1994; Wing & Yiu, 2000). Three studies discussed the implications The development of entrepreneurship in China 341
342 J.Y.Yang.J.Li per 3a:Environmental/Macro Studies Management Issues/Conclusions Market transition/ Privatization of China's economy (Dharwadkar 2000.Ramamurti 2000) business system Hybrido onal forms and o ership/property rights change change (8) Development of financia institutions and its impactson ance Entrepreneurship and Small Business 。Historical hin develo change(19) Tan 2005 2007,Tsang 1996,Wing &Yiu 1996) in&Yiu 2000) by entrepreneurs in China (Tsang 1994 ·Dg Chns' ,Dana1999, how 1995) (Begley,Tan Schoch 2005,Bruton&Ahlstrom 2003),government 1996.Tan1996 3b:Firm-level Studies Management Issues/Conclusions tschert 1994.Tan Interfirm .relationships/network"to manage relatio c199602001 Entrepreneurship and Small Business Environment-strategy-p ance relations in township and village uthern Chi a (Luo echmoloy-loeed 2002) Interfirm ·Networkin g and the growth of young technology-intensive ventures in China (Zhao Aram 1995) Springer
Table 3 China-related entrepreneurship research: detailed research topics and summary of theoretical perspectives. 3a: Environmental/Macro Studies Management Issues/Conclusions . Privatization of China’s economy (Dharwadkar 2000, Ramamurti 2000) . Hybrid organizational forms and ownership/property rights change (Boisot & Child 1988 1996, Nee 1992) . Development of financial institutions and its impacts on entrepreneurship activities (George & Prabhu 2000) Market transition/ business system change (8) . Difficulty and importance of studying management and organizational issues in the Chinese context (Shenkar & von Glinow 1994, Tsui et al. 2004) Entrepreneurship and Small Business . Historical and comparative review on China’s entrepreneurship development (Chang & MacMillan 1991, Fan 1996, Matthews 1996, Tan 2005 2007, Tsang 1996, Wing & Yiu 1996) . Opportunities and threats faced by entrepreneurs in China (Tsang 1994, Wing & Yiu 2000) . Implications of entrepreneurship development in China’s economy (Anderson et al. 2003, Dana 1999, Chow 1995) Market transition/ business system change (19) . Specific factors influencing the evolution of China’s entrepreneurial ventures, such as culture (Zapalska 2001), institutional environments (Begley, Tan & Schoch 2005, Bruton & Ahlstrom 2003), government interventions (Anyansi-Archibong, Danenburg, & Tan, 1989; Danenburg & Tan 1989), and technology transfer (Lado & Vozikis, 1996, Tan 1996) 3b: Firm-level Studies Management Issues/Conclusions . Environment-strategy-performance relationships in China’s transition economy (Boisot & Child 1999, Child & Lu 1996, Davies & Walters 2004, Keister 2002, Lukas, Tan & Hult 2001, Luo, Tan & Shenkar, 1998, Peng 2003, Peng & Heath 1996, Tan & Litschert 1994, Tan & Tan 2005) Firm strategy/ outcome (18) . Product/technology innovation strategy (Atuahene-Gima & Li 2004, Li & Atuahene-Gima 2001 2002), organizational governance and structure (Lin & Germain 2003, Peng 2004, White 2000), financial strategy (Keister 2004), and strategic alliance (Hitt et al. 2004) Interfirm relationships/ network (5) . Using “interfirm relationships/network” to manage institutional constraints in the transition economy (Luo 2003, Park & Luo 2001, Peng & Luo 2000, Wu & Leung, 2005, Xin & Pearce 1996). Entrepreneurship and Small Business . Environment-strategy-performance relations in township and village enterprises in southern China (Luo 1999) . Roles of institutions and culture in shaping strategic actions by technology-focused entrepreneurial firms in China (Ahlstrom & Bruton 2002) Firm strategy/ outcome (3) . The development of total quality management in small firms in China (Lee 2004) Interfirm relationships/ network (1) . Networking and the growth of young technology-intensive ventures in China (Zhao & Aram 1995) 342 J.Y. Yang, J. Li
The development of entrepreneurship in China 343 Table 3 (continued) 3c:Individual/Micro Studies Managemer世 Issues/Conclusions Managerial values .Effects of culture and cross-national differences on managers' its/behavior ton 2004,Mitchell et al.2000.Vertinsky et 5 2002 eneur's limited accessibility to privatecquity (Batjargal &Liu Entrepreneurial .Effects of culture and cross-national differences on entrepreneurs' (9 Mitchell ct al 2002) z2001),and 2002)in the context of of entrepreneurship development in China's economy (Anderson,Li,Harrison, Robsor .2003:Chow,1995:Dana.1999).The certain factor s that inf studies tended to focus ence the ent reprene ent such alska&E ,2001 stitutional enviro ments (Begley,Tan, rventions (Anyansi- Archibong,Danenburg,Tan,1989;Danenburg Tan,1989),and technology transfer (Lado Vozikis.1996:Tan.1996). Many studies in this literature regarded the emergence and proliferation of private firms/small businesses as an indicator of entrepreneurship,regardless of the fact that most of them are just craft workshops.This emphasis is a bit different from that of the ent eurship literature in the ntext,wher e the fo us has bee ep vices,proc S,and etc (Shane enkataraman,2000) We will return to this ob n er sections The theoretical perspectives employed in this literature are broad,including transaction cost,information asymmetry,and agency theories from an economic perspective (Wing Yiu,2000);absorptive capacity and knowledge management from a strategic management perspective (Lado Vozikis,1996);resource- dependence and population ecology from an organization theory perspective (Begley,Tan,Scl )perspective( nd a s (Tsang.1996;Wing Yiu Edw rds,2001). Firm-level strategy We classify the firm-level studies into two broad research themes:firm strategy/ outcome,and inter-firm relationship/networks.Our discussions below primarily focus on studies of entrepreneurship related to China's domestic firms,including private firms,small businesses,township and village enterprises (TVEs).and transformed SOEs.and examine their interactions with the institutional environ- Springer
of entrepreneurship development in China’s economy (Anderson, Li, Harrison, & Robson, 2003; Chow, 1995; Dana, 1999). The remaining studies tended to focus on certain factors that influence the evolution of China’s entrepreneurial ventures, such as culture (Zapalska & Edwards, 2001), institutional environments (Begley, Tan, & Schoch, 2005; Bruton & Ahlstrom, 2003), government interventions (AnyansiArchibong, Danenburg, & Tan, 1989; Danenburg & Tan, 1989), and technology transfer (Lado & Vozikis, 1996; Tan, 1996). Many studies in this literature regarded the emergence and proliferation of private firms/small businesses as an indicator of entrepreneurship, regardless of the fact that most of them are just craft workshops. This emphasis is a bit different from that of the entrepreneurship literature in the Western context, where the focus has been on creation of new ventures with discovery of new technology, new combinations of services, products, and etc. (Shane & Venkataraman, 2000). We will return to this observation in later sections. The theoretical perspectives employed in this literature are broad, including transaction cost, information asymmetry, and agency theories from an economic perspective (Wing & Yiu, 2000); absorptive capacity and knowledge management from a strategic management perspective (Lado & Vozikis, 1996); resourcedependence and population ecology from an organization theory perspective (Begley, Tan, & Schoch, 2005), the institutional perspective (Bruton & Ahlstrom, 2003), and a combination of these different perspectives (Tsang, 1996; Wing & Yiu, 1996; Zapalska & Edwards, 2001). Firm-level strategy We classify the firm-level studies into two broad research themes: firm strategy/ outcome, and inter-firm relationship/networks. Our discussions below primarily focus on studies of entrepreneurship related to China’s domestic firms, including private firms, small businesses, township and village enterprises (TVEs), and transformed SOEs, and examine their interactions with the institutional environ- 3c: Individual/Micro Studies Management Issues/Conclusions . Effects of culture and cross-national differences on managers’ values/behavior (Egri & Ralston 2004, Mitchell et al. 2000, Vertinsky et al. 1990, Weber & Hsee 1998) Managerial values /traits/behavior (5) . Entrepreneur’s limited accessibility to private equity (Batjargal & Liu 2002) Entrepreneurship and Small Business . Effects of culture and cross-national differences on entrepreneurs’ values/behavior (Brush & Chaganti 1996, Busenitz & Lau 1996, Hayton, George, & Zahra 2002, Holt 1997, Mcgrath et al. 1992, Mitchell et al. 2002) Entrepreneurial values/traits/ behavior (9) . Entrepreneurs’ growth orientation (Lau & Busenitz 2001), and innovation and risk-taking attitude (Tan 2001, 2002) in the context of transition economy Table 3 (continued) The development of entrepreneurship in China 343