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Proactiveness, Stakeholder–Firm Power Difference, and Product Safety and Quality of Chinese SMEs

Authors

  • Jintong Tang,

    assistant professor, Corresponding authorSearch for more papers by this author
    • Jintong Tang is an assistant professor of entrepreneurship and management, John Cook School of Business, Saint Louis University, 3674 Lindell Blvd., DS 469A, St. Louis, MO 63108, USA.
  • Zhi Tang,

    associate professor, Corresponding authorSearch for more papers by this author
    • Zhi Tang is an associate professor in management, E. Philip Saunders College of Business, Rochester Institute of Technology, Max Lowenthal Building, 107 Lomb Memorial Dr., Rochester, NY 14623-5603, USA.
  • Jerome A. Katz

    Professor, Corresponding authorSearch for more papers by this author
    • Jerome A. Katz is a Coleman Foundation Professor of Entrepreneurship, John Cook School of Business, Saint Louis University, 3674 Lindell Blvd., St. Louis, MO 63108, USA.

  • The authors wish to express their sincere appreciation to Editor Don Neubaum and two anonymous reviewers for their invaluable comments on earlier versions of this manuscript.

Abstract

Despite an abundance of research on entrepreneurial orientation and various dimensions of firm financial performance, very little is known about the specific influence of proactiveness on performance. In the current research, we explore the role of proactiveness in firms' interaction with the external environment. In particular, we examine the influence of proactiveness in stakeholder–firm power difference. Further, we investigate the extent to which stakeholder–firm power difference affects product safety and quality. Using a sample of 144 Chinese small- and medium-sized enterprises (SMEs), we found that proactiveness can decrease government– and media–firm power differences. Government–firm power difference reduces product concerns, yet media–firm power difference deteriorates the purported product strengths for Chinese SMEs.

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