Building Blocks for Chinese SMEs to Enter the Global Market: The Roles of Upstream Knowledge and Downstream Channel Infrastructure

Yong Cao, Daniel Hartung, Edward Forrest, Zhengping Shen


Small and medium enterprises (SMEs) are the most important economic components in China’s economy- in that
they account for 98.9 percent of the total number of businesses and 65.6 percent of China’ s industrial output
value. Chinese SMEs have forestalled rapid expansion into global markets due to the constraints of language,
culture, and logistics. This paper examines Chinese SMEs limitations in addressing these constraints. Three
contingency strategies (niche market strategy, strategic networking and e-commerce) are proffered to assist
China’s SMEs to more fully compete and succeed in their international efforts.

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