The Strawberry Growth Underneath the Nettle: The Emergence of Entrepreneurs in China

41 Pages Posted: 26 Aug 2006

See all articles by Barbara Krug

Barbara Krug

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Laszlo Polos

Erasmus Research Institute of Management (ERIM)

Date Written: April 2000 9,

Abstract

Chinese entrepreneurs innovatively manage organisations in the absence of strong economic institutions, under conditions of high environmental and technological uncertainty. This paper presents the findings of an empirical study designed to investigate how Chinese entrepreneurs can be successful in such an environment. We found that Chinese entrepreneurial activity relies on social institutions rather than on economic institutions. We offer a sociological theory which explains why the reliance on social institutions leads to such an unprecedented success. We conclude that the strong rule-enforcement mechanisms generate reliable behavioral patterns, and that these in turn efficiently reduce uncertainty to tolerable levels.

Keywords: Comparative business systems, evolutionary economics, private sector in China, social capital, networks

JEL Classification: M, M10, L2, M13, O17, O50, L22, L33, P51

Suggested Citation

Krug, Barbara and Polos, Laszlo, The Strawberry Growth Underneath the Nettle: The Emergence of Entrepreneurs in China (April 2000 9,). ERIM Report Series Reference No. ERS-2000-34-ORG. Available at SSRN: https://ssrn.com/abstract=370836

Barbara Krug (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Laszlo Polos

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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