An Institutional Analysis of Marketing Practices of Small and Medium-Sized Enterprises (Smes) in China, Hong Kong and Taiwan

Specific factors that affect the marketing practices of small and medium-sized enterprises (SMEs) in China, Hong Kong, and Taiwan is studied. Data were collected utilizing a narrative method and content analysis approach on 391 published news stories about entrepreneurs in China, Hong Kong, and Taiwan. Results are as follows: (1) government intervention--Chinese SMEs indicate a strong governmental influence, Hong Kong business owners report government intervention as being minimal, and Taiwanese entrepreneurs identify no issues related to government intervention; (2) production systems--product planning and sales are the highest ranked activities in China, Hong Kong, and Taiwan; and (3) business approach--Chinese SMEs work in a relation-oriented business environment, Hong Kong SMEs function in a transaction-oriented business atmosphere, and Taiwanese SMEs are run in a relation-oriented business setting. Chinese and Hong Kong SMEs spend a limited amount of expenditure on marketing and with customers compared to Taiwanese SMEs. The marketing activities of Chinese and Hong Kong SMEs are at the early stages of the marketing development life cycle, whereas Taiwanese SMEs are at the entrepreneurial stage. All SMEs will soon operate under Own Brand Manufacturers (OBM) systems with low levels of government intervention. A tentative schema is proposed, characterizing the interplay and between aspects of business and government and its impact on marketing practices of Chinese SMEs. (NEE)