Diversification as a Circumvention Strategy to Institutional Constraints in China: An Official-Entrepreneur Exchange Perspective

Peihong Xie, Xin Li, Sibin Wu

    Publikation: Konferencebidrag › Paper › Forskning › peer review

    Resumé

    While unrelated diversification (i.e., conglomeration) is deemed value-destroying in the West, many Chinese private firms have been enthusiastically pursuing such a growth strategy. Conventional institutional view of diversification sees conglomerates as responses to market imperfections in emerging economies and believes conglomeration is value-creating because conglomerates can effectively fill the institutional voids in the emerging markets. Our literature review shows that the conventional institutional view on conglomeration mainly focuses on the value-creating aspects while neglects the socially counterproductive rent-seeking aspects of conglomeration strategy in institution-weak countries (Khanna & Palepu, 2000). In this paper, we fill the gap by examining some unconventional diversifications and point out their rent-seeking nature in China. We have proposed an official-entrepreneur exchange theoretical model to account for such unconventional diversifications. Therefore, we adopt a case study approach to theory-building (Eisenhardt, 1989). We have made two contributions to knowledge. One is that we contribute to the diversification literature by identifying the unconventional diversification phenomenon and proposing a theoretical framework to account for it. The other is that we contribute to the institution-based view of strategy.
    OriginalsprogEngelsk
    Publikationsdato2014
    StatusUdgivet - 2014
    Begivenhed 2014 IACMR Conference: Exploring New Concepts and Theories from Chinese Management - The China National Convention Center, Beijing, Kina
    Varighed: 18 jun. 2014 → 22 jun. 2014
    Konferencens nummer: 6
    http://www.iacmr.org/v2en/Detail.asp?id=313

    Konference

    Konference 2014 IACMR Conference: Exploring New Concepts and Theories from Chinese Management
    Nummer6
    LokationThe China National Convention Center
    LandKina
    ByBeijing
    Periode18/06/2014 → 22/06/2014
    Internetadresse

    Bibliografisk note

    CBS Bibliotek har ikke adgang til materialet

    Emneord

    • Diversification
    • Conglomerate
    • Institution
    • Rent-seeking
    • Exchange

    Citer dette

    Xie, P., Li, X., & Wu, S. (2014). Diversification as a Circumvention Strategy to Institutional Constraints in China: An Official-Entrepreneur Exchange Perspective. Afhandling præsenteret på 2014 IACMR Conference: Exploring New Concepts and Theories from Chinese Management, Beijing, Kina.
    Xie, Peihong ; Li, Xin ; Wu, Sibin. / Diversification as a Circumvention Strategy to Institutional Constraints in China : An Official-Entrepreneur Exchange Perspective. Afhandling præsenteret på 2014 IACMR Conference: Exploring New Concepts and Theories from Chinese Management, Beijing, Kina.
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    title = "Diversification as a Circumvention Strategy to Institutional Constraints in China: An Official-Entrepreneur Exchange Perspective",
    abstract = "While unrelated diversification (i.e., conglomeration) is deemed value-destroying in the West, many Chinese private firms have been enthusiastically pursuing such a growth strategy. Conventional institutional view of diversification sees conglomerates as responses to market imperfections in emerging economies and believes conglomeration is value-creating because conglomerates can effectively fill the institutional voids in the emerging markets. Our literature review shows that the conventional institutional view on conglomeration mainly focuses on the value-creating aspects while neglects the socially counterproductive rent-seeking aspects of conglomeration strategy in institution-weak countries (Khanna & Palepu, 2000). In this paper, we fill the gap by examining some unconventional diversifications and point out their rent-seeking nature in China. We have proposed an official-entrepreneur exchange theoretical model to account for such unconventional diversifications. Therefore, we adopt a case study approach to theory-building (Eisenhardt, 1989). We have made two contributions to knowledge. One is that we contribute to the diversification literature by identifying the unconventional diversification phenomenon and proposing a theoretical framework to account for it. The other is that we contribute to the institution-based view of strategy.",
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    Xie, P, Li, X & Wu, S 2014, 'Diversification as a Circumvention Strategy to Institutional Constraints in China: An Official-Entrepreneur Exchange Perspective' Paper fremlagt ved 2014 IACMR Conference: Exploring New Concepts and Theories from Chinese Management, Beijing, Kina, 18/06/2014 - 22/06/2014, .

    Diversification as a Circumvention Strategy to Institutional Constraints in China : An Official-Entrepreneur Exchange Perspective. / Xie, Peihong; Li, Xin; Wu, Sibin.

    2014. Afhandling præsenteret på 2014 IACMR Conference: Exploring New Concepts and Theories from Chinese Management, Beijing, Kina.

    Publikation: Konferencebidrag › Paper › Forskning › peer review

    TY - CONF

    T1 - Diversification as a Circumvention Strategy to Institutional Constraints in China

    T2 - An Official-Entrepreneur Exchange Perspective

    AU - Xie, Peihong

    AU - Li, Xin

    AU - Wu, Sibin

    N1 - CBS Library does not have access to the material

    PY - 2014

    Y1 - 2014

    N2 - While unrelated diversification (i.e., conglomeration) is deemed value-destroying in the West, many Chinese private firms have been enthusiastically pursuing such a growth strategy. Conventional institutional view of diversification sees conglomerates as responses to market imperfections in emerging economies and believes conglomeration is value-creating because conglomerates can effectively fill the institutional voids in the emerging markets. Our literature review shows that the conventional institutional view on conglomeration mainly focuses on the value-creating aspects while neglects the socially counterproductive rent-seeking aspects of conglomeration strategy in institution-weak countries (Khanna & Palepu, 2000). In this paper, we fill the gap by examining some unconventional diversifications and point out their rent-seeking nature in China. We have proposed an official-entrepreneur exchange theoretical model to account for such unconventional diversifications. Therefore, we adopt a case study approach to theory-building (Eisenhardt, 1989). We have made two contributions to knowledge. One is that we contribute to the diversification literature by identifying the unconventional diversification phenomenon and proposing a theoretical framework to account for it. The other is that we contribute to the institution-based view of strategy.

    AB - While unrelated diversification (i.e., conglomeration) is deemed value-destroying in the West, many Chinese private firms have been enthusiastically pursuing such a growth strategy. Conventional institutional view of diversification sees conglomerates as responses to market imperfections in emerging economies and believes conglomeration is value-creating because conglomerates can effectively fill the institutional voids in the emerging markets. Our literature review shows that the conventional institutional view on conglomeration mainly focuses on the value-creating aspects while neglects the socially counterproductive rent-seeking aspects of conglomeration strategy in institution-weak countries (Khanna & Palepu, 2000). In this paper, we fill the gap by examining some unconventional diversifications and point out their rent-seeking nature in China. We have proposed an official-entrepreneur exchange theoretical model to account for such unconventional diversifications. Therefore, we adopt a case study approach to theory-building (Eisenhardt, 1989). We have made two contributions to knowledge. One is that we contribute to the diversification literature by identifying the unconventional diversification phenomenon and proposing a theoretical framework to account for it. The other is that we contribute to the institution-based view of strategy.

    KW - Diversification

    KW - Conglomerate

    KW - Institution

    KW - Rent-seeking

    KW - Exchange

    M3 - Paper

    ER -

    Xie P, Li X, Wu S. Diversification as a Circumvention Strategy to Institutional Constraints in China: An Official-Entrepreneur Exchange Perspective. 2014. Afhandling præsenteret på 2014 IACMR Conference: Exploring New Concepts and Theories from Chinese Management, Beijing, Kina.