Monica Ren

Network gatekeeping in SME exporters’ market entry in China

– Small and medium-sized exporters (SMEs) are driven to develop a network entry strategy to tap into a new foreign market. The purpose of this paper is to draw on the network perspective to evaluate how a network gatekeeper facilitates a foreign SME exporter’s entry into local business networks in China. , – The single case study method was adopted. The Ule New Zealand Mall, an online shopping platform that sells New Zealand products in China, was selected in this case study. The authors applied the critical incident technique to evaluate the position of New Zealand Post (as a home country-based network gatekeeper), the roles within the position, and the key outcome of the network gatekeeping. , – The study discovers two key roles of network gatekeepers: bridging the gap in trust between outsider networks and insider networks; and reducing the costs of experiential learning for SME exporters. Finally, this study concludes that the “brokered insidership” position acquired by SME exporters is the key outcome of network gatekeeping in foreign market entry. , – This study advances the understanding of theories of structural holes, business network and gatekeeping. The authors articulate the critical position assumed by a network gatekeeper in bridging two otherwise disconnected business networks, and their key roles in networking. The study also proposes a new network concept – “brokered insidership”.

Toward a Yin-Yang balancing perspective of relational (Guanxi) gatekeeping in international exchange relationships in China

China is an extremely complex and “insider-controlled” market for foreign businesses. This study offers a yin-yang balancing perspective of international exchange relationships in China. The authors investigate how “relational gatekeepers” play a key role in achieving a dynamic balance between Western companies and local partners in international exchange relationships. In-depth interviews are conducted with 41 business managers based in China, Australia, and New Zealand. Guided by the yin-yang balancing frame, the authors develop four key constructs of relational gatekeeping: the gatekeeper resources of mianzi (insider status) and renqing (insider favor) and the gatekeeper capabilities of zao shi (creating favorable momentum) and ying shi (leveraging favorable momentum). The yin-yang frame provides a process view of business relationships that accepts paradoxical conditions and embraces dynamic network momentum, resources, and capabilities. The study concludes by showing the theoretical implications for network theory and for the field of dynamic balancing and suggests the managerial implications for an international company aiming to engage relational gatekeepers to break into insider (guanxi)-controlled local business networks.