Features of Decision-making in SMEs: The case of SMEs in China

This research has been carried out to understand the decision-making processes in the Chinese small and medium enterprises (SMEs). The research also aimed at understanding the key features of the decision-making processes in these firms as well as to understand the various factors that influence the decision-making process. The research was designed as a qualitative research with an in-depth interview strategy. As part of this, 10 middle and senior managers of Chinese SMEs were interviewed. The research findings indicate that Chinese firms are more rational than is currently understood from the existing literature. However, these firms also utilise intuition where needed to further improve the quality of their decisions. The research also suggests that Chinese SME firms do adopt structured decision-making processes, but their application is dependent on both the kind of organisation and the kind of decision to be taken. The findings also suggest high influence of political behaviour and less influence of social factors on the decision-making processes in these firms. The findings thus contribute to the existing literature through some unique findings as well as verification of some of the existing literature