Managing the Strengths of Ties for Internationalization: Lessons from Four Rapidly Internationalized Chinese SMEs

Yee Kwan Tang
University of Glasgow, U.K.

ABSTRACT

This study aims at providing exploratory insights into the initiative and capabilities of Chinese SMEs to develop and utilize diverse networks to support internationalization. Such network development and utilization efforts are fundamental to the analysis and explanation of Chinese firms’ internationalization patterns and outcomes. Extending from the existing network studies in the Chinese context that generally put emphasis on strong-tie and ethnic-oriented networks, this paper investigates and explains explicitly the use and effects of both strong- and weak-tie networks in the international development of Chinese SMEs. In depth case studies on four rapidly internationalized Chinese SMEs are conducted. The case findings demonstrate that weak-tie networks are essential to the firms’ business development in foreign markets; and were proactively developed and utilized in the course of the firms’ development. The cases also provide alternative perspectives to the beliefs and values underpinning strong-tie networks presumed in existing literature. The findings draw attention to the changing business values and approaches of the Chinese firms aiming at developing internationally. Managerial implications concerning the significant influence of effective networking on internationalization are pinpointed.

Key Words: Networks, Internationalization, SMEs