Entrepreneurship in Transition: Searching for Governance in China’S New Private Sector

46 Pages Posted: 9 Mar 2004

See all articles by Barbara Krug

Barbara Krug

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

H. Hendrischke

University of New South Wales (UNSW) - Faculty of Arts and Social Sciences

Date Written: January 21, 2004

Abstract

Entrepreneurial activities in transition economies go beyond (technical) entrepreneurship. In an environment of institutional and procedural uncertainty entrepreneurs need to select business partners, choose a mode of governance that stabilizes long term business relations, and settle for such property rights regime that best matches the entrepreneurial endeavour. Bases on fieldwork in China the paper shows how entrepreneurs combine their predisposition for social relations with economic reasoning when they embed firms in one location, in mixed forms of relational and contractual governance, and specific ownership structures. The empirical research points to alternative economic concepts which allow further analysing the interaction between individual entrepreneurship and the emergence of market conforming institutions.

Keywords: entrepreneurship, governance and institutions, embeddedness

JEL Classification: M, M10, L2, O12

Suggested Citation

Krug, Barbara and Hendrischke, Hans, Entrepreneurship in Transition: Searching for Governance in China’S New Private Sector (January 21, 2004). ERIM Report Series Reference No. ERS-2004-008-ORG. Available at SSRN: https://ssrn.com/abstract=496715

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

Hans Hendrischke

University of New South Wales (UNSW) - Faculty of Arts and Social Sciences ( email )

Sydney
Australia
+61 2 9385 2187 (Phone)
+61 2 9385 1190 (Fax)

HOME PAGE: http://languages.arts.unsw.edu.au/staff/staff.php?first=Hans&last=Hendrischke

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