Business, Management and Accounting
3 years ago

Chinese SMEs Boost Home Country Economy Through Overseas Ventures.

Journal of Business Research
How can emerging-market SMEs domestically benefit from their performance in developed countries? Empirical evidence from China
Li Wei, Zhi Liu, Senmao Xia, Ji Yan, Yu Xiong, Georgia Sakka, Rebecca Yu Li

Paper Summary

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Small and medium-sized businesses in developing countries can improve their performance at home by doing well in developed countries. A study of 377 Chinese SMEs showed that when these companies do well in other countries, they also do better in China. This is because they learn new technologies and show others what they can do. The study found that how well a company does in another country is linked to how well it does at home, and this link is stronger when the company is good at combining its resources. This research helps small businesses in developing countries understand how their international operations can help them grow back home.