Developing business trust in government through resource exchange in China

The impact of dynamic capabilities on SME performance during COVID-19

Dynamic capabilities (DCs) are a growing field of research within the scope of theoretical structures based on resource and strategic management. Given the demonstrated impact of DCs on company performance, it is important to study the effects of DCs on small and medium sized enterprises (SMEs) within the context of the COVID-19 pandemic. Hence, this research evaluates the role of DCs during the pandemic and its impact on the performance levels of SMEs. Analysing the responses of 209 SMEs using a structural equations model, we report that DCs positively affect company performance both prior to and during the pandemic. However, we also verify that while prior to the pandemic companies placed greater emphasis on the search for new opportunities, following the onset of the pandemic the focus shifted to getting their products to the market. These results contribute to the literature on strategic management and the DC based approach during periods of turbulence and pandemics.

The Effect of Formal and Informal External Collaboration on Innovation Performance of SMEs: Evidence from China

External collaboration is an effective way for small and medium-sized enterprises (SMEs) to improve innovation performance and obtain sustainable competitiveness. This study focuses on the influence of external collaboration on innovation performance of SMEs. Specifically, this study classifies external collaboration into formal and informal external collaboration, and explores their different impacts on innovation performance of SMEs, respectively. Moreover, this study examines the moderating effects of managers’ entrepreneurial orientation and organizational legitimacy on the relationships between formal and informal collaboration and innovation performance of SMEs. Survey data from 213 high-tech manufacturing SMEs in China reveals that: (1) Both formal and informal external collaboration have positive effects on innovation performance of SMEs, and informal external collaboration offers greater benefits than formal external collaboration; (2) managers’ entrepreneurial orientation positively moderates the relationship between informal external collaboration and SMEs’ innovation performance; (3) organizational legitimacy positively moderates the relationships between formal and informal external collaboration and SMEs’ innovation performance. This study enriches the research on the relationship between external collaboration and innovation performance of SMEs, and advances the understanding of the contextual factors between formal and informal external collaboration-SMEs’ innovation performance relationships through elucidating the moderating role of managers’ entrepreneurial orientation and organizational legitimacy.

Guanxi’s Contribution to Commitment and Productive Conflict Between Banks and Small and Medium Enterprises in China

Guanxi has long been thought to play a critical role in understanding and practicing leadership, teamwork, and organizational partnerships in China. Researchers have argued that guanxi can be usefully understood as a kind of close relationship that obliges partners to assist each other. This study proposes that the theory of cooperation and competition as developed in the West can help us to understand how guanxi affects partner relationships. Findings from data on partnerships between banks and small or medium enterprises in Shanghai support the argument that guanxi strengthens cooperative goals, which in turn results in relationship commitment and productive conflict. Our study’s findings suggest that partners with guanxi interact in mutually beneficial ways that enhance their cooperative goals. Further research is needed to provide a stronger foundation for the causal inferences of these findings, and to investigate whether guanxi as it is known in China can also serve to develop cooperative goals, relationship commitment, and productive conflict among partnerships in other Asian societies and in the West.