Institutional Escape and Embeddedness in the Cross-border Production Networks: Relocation of Chinese Electronics Small and Medium-sized Enterprises to Vietnam

David Yuen-Tung Chan, Chun Yang

Research output: Contribution to journalArticlepeer-review

Abstract

Existing literature on industrial relocation mainly focuses on the established transnational corporations (TNCs) while ignoring the small and medium-sized enterprises (SMEs) as emerging TNCs While institutional embeddedness and institutional escape have been highlighted in the Global Production Networks (GPN) and International Business (IB) literature respectively, the interrelationship between the two perspectives have been overlooked in the literature. By connecting them inan institutional interplay framework, this article explores the relocation of Chinese electronics SMEs to Vietnam since the late 2000s. It argues thatthe inherited home legacy has been an important factor in driving the SMEs to escape from the institutional constraints in home regions in China and embedding in the conducive institutional environment in southern Vietnam.
Original languageEnglish
JournalJournal of Contemporary China
DOIs
Publication statusE-pub ahead of print - 30 Nov 2021

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