Articles

Institutional Complexity and the Strategic Behaviors of SMEs in Transitional Environments

Y. DING, V. MALLERET, S. R. VELAMURI

International Journal of Emerging Markets

September 2016, vol. 11, n°4, pp.514 - 532

Departments: Accounting & Management Control

Keywords: Institutional Logics, Institutional Complexity, Strategic Behaviors, SMEs, Transition Economies


We study how five privately owned Chinese companies adapted their strategies in the 2000-2012 period to large-scale macro-level institutional changes. Drawing on recent developments in institutional theory, in particular on the constructs of institutional logics, institutional complexity and “organizational filters”, we explain why our subject firms’ range of strategic behaviors went from broad to narrow, as a function of i) the stage of institutional transition and ii) organizational filters, i.e., how the firms make sense of the institutional complexity based on their own attributes. We discuss the implications of ourfindings for managers of SMEs in transitional economies and researchers


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