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Microenterprise performance and microenterprise zones (MEZOs) in China

Microenterprise performance and microenterprise zones (MEZOs) in China Purpose – The purpose of this exploratory study is to examine whether performance of microenterprises located in a microenterprise zone (MEZO) in China is positively related to key management practices, entrepreneurial orientation, marketing capability, and technology capability. The paper aims to introduce the concept of MEZOs as a supplemental tool for governments to strengthen microenterprise activity. Design/methodology/approach – A total of 150 randomly selected microenterprises located in a MEZO in Changchun, an industrial city in Northeast China, completed a survey consisting of a three‐part measure of microenterprise performance developed by Zinger et al. and entrepreneurial orientation. Factor analysis was performed on 11 management issues and correlation analysis was performed. Findings – The study found that key management practices, marketing capability, and technology capability of microenterprises in MEZOs do have a positive impact on performance sales, net profit, and growth. Research limitations/implications – The study's results are limited by a sample in one city in one province of China collected in one month. The data are cross‐sectional rather than longitudinal. Sample bias may exist. Practical implications – This study is valuable to government officials, policy makers, non‐government organizations and consulting firms as they examine new measures to unleash the economic power of microenterprises. Social implications – MEZOs need to be explored as one solution to aide microenterprise development to improve the poverty level, create jobs, and stimulate economic activity. Originality/value – To the authors' knowledge, this is the first exploratory study of the performance of microenterprises located in a MEZO in China. Through research, the factors that contribute to microenterprise performance and success can be better understood and the impact that the MEZO model has on microenterprises can be better delineated. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

Microenterprise performance and microenterprise zones (MEZOs) in China

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Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
0025-1747
DOI
10.1108/00251741311291292
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this exploratory study is to examine whether performance of microenterprises located in a microenterprise zone (MEZO) in China is positively related to key management practices, entrepreneurial orientation, marketing capability, and technology capability. The paper aims to introduce the concept of MEZOs as a supplemental tool for governments to strengthen microenterprise activity. Design/methodology/approach – A total of 150 randomly selected microenterprises located in a MEZO in Changchun, an industrial city in Northeast China, completed a survey consisting of a three‐part measure of microenterprise performance developed by Zinger et al. and entrepreneurial orientation. Factor analysis was performed on 11 management issues and correlation analysis was performed. Findings – The study found that key management practices, marketing capability, and technology capability of microenterprises in MEZOs do have a positive impact on performance sales, net profit, and growth. Research limitations/implications – The study's results are limited by a sample in one city in one province of China collected in one month. The data are cross‐sectional rather than longitudinal. Sample bias may exist. Practical implications – This study is valuable to government officials, policy makers, non‐government organizations and consulting firms as they examine new measures to unleash the economic power of microenterprises. Social implications – MEZOs need to be explored as one solution to aide microenterprise development to improve the poverty level, create jobs, and stimulate economic activity. Originality/value – To the authors' knowledge, this is the first exploratory study of the performance of microenterprises located in a MEZO in China. Through research, the factors that contribute to microenterprise performance and success can be better understood and the impact that the MEZO model has on microenterprises can be better delineated.

Journal

Management Decision – Emerald Publishing

Published: Feb 1, 2013

Keywords: Microenterprises; Small enterprises; Economic performance; Emerging markets; China

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