High-Tech Ventures' Innovation and Influences of Institutional Voids: A Comparative Study of Two High-Tech Parks in China

Purpose – The purpose of this paper is to investigate how institutional voids influence high-tech ventures' innovation, and what strategies high-tech entrepreneurs deploy to cope with the institutional environments they encounter. Design/methodology/approach – A qualitative research approach was taken. In-depth interviews were conducted with nine high-tech entrepreneurs. In addition, governmental officials, overseas associations, and professional investors were interviewed for more/further observations. Findings – Institutional voids may negatively influence high-tech ventures' innovation. They might be moderated by guanxi and government active involvement. On the contrary, institutional voids can offer high-tech entrepreneurs the opportunity to create innovative business models. The co-evolution of institutional developments and high-tech ventures illustrates the particular characteristics of Chinese entrepreneurial environment. Research limitations/implications – Qualitative study cannot simply be generalized, albeit this explorative study provides illustrative insights. Quantitative research (e.g. surveys), which is applied to test the propositions, calls for further scholarly inquiry. Practical implications – Overseas entrepreneurs are presented with the opportunities to pursue an entrepreneurial career. SMEs from developed economies may join the movement with technology entrepreneurs to enter the Chinese market and co-shape the market development. Originality/value – Institutional voids were conceptualized from a multi-dimensional perspective, namely national, regional, and individual. By providing qualitative evidence, different mechanisms to fill the institutional voids are explored.