International Entrepreneurship Activities and Business Performance: An Empirical Study of Chinese Textile and Apparel SMEs

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2016-11-09
Authors
Chi, Ting
Tansuhaj, Patriya
Sun, Yao
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Altmetrics
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The purpose of this study was to examine the relationship between international entrepreneurship activities and firm performance in a context of Chinese textile and apparel SMEs. The specific objectives were to: 1. understand SME international entrepreneurship activities in terms of their antecedents and effects on firm performance; and 2. provide implications for industrial practitioners and policy makers on how to use international entrepreneurship activities to enhance competitive advantage of Chinese SMEs in the international marketplace. A two-phase survey through a market research company was utilized for collecting 178 eligible responses in 2015. Factor analysis and structural equation modeling were utilized for data analysis and hypothesis testing. The findings reveal that Chinese SMEs can gain financial benefit and achieve strategic competencies through strategic alliances, licensing, export and import activities. Although FDI may improve strategic performance, it doesn't result in positive financial outcome directly which might be due to lack of economies of scale for SMEs. In order to promote international entrepreneurship activities among SMEs, cultivating entrepreneurial orientation and fostering global mindset are critical, which government may facilitate by policy incentives and/or financial and personnel support. Given resource and capability limitations, imitation remains a more viable and common strategy than innovation for SMEs to succeed in international entrepreneurship activities.

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