Unicorns Gallop Rampant Through China And India: Successes And Similarities

Main Article Content

James Pérez
Lina Marrugo
Verónica Tordecilla

Keywords

Unicorns, Unicorn firms, Startups, China, India, Chindia

Abstract





This study aims to explore the success and characteristics of the novel business model used by Chinese and Indian unicorn firms as well as attempts to develop a framework called CEHI (Collocation, Entrepreneurship Attitudes, High Tech Startups, and Innovation) for the analysis of global unicorn firms. The liter- ature on unicorn firms is immature in business, management, and accounting (BMA) literature found in Scopus and Web of Science. To bridge this gap, this paper performs a holistic review of the existing literature, exploring and analyzing all unicorns in China and India (referred to collectively as Chindia) (89 Chinese Unicorns and 16 Indian Unicorns as of 2019) to provide insights into the phenomenon and contribute towards future avenues for research into unicorns.





Downloads

Download data is not yet available.
Abstract 796 | PDF (Español) Downloads 650

References

Adler, P., Florida, R., King, K., & Mellander, C. (2019). The city and high-tech startups: The spatial organization of Schumpeterian entrepreneurship. Cities, 87, 121-130.

Aldrich, H., & Ruef, M. (2018). Unicorns, Gazelles, and Other Distractions on the Way to Understanding Real Entrepreneurship in America. Academy of Management Perspectives. doi:10.5465/amp.2017.0123

Anderson, A. R., and Yiu-Chung Lee, E. (2008). From tradition to modern. Journal of Small Business and Enterprise Development. 15(4), 775–787. doi:10.1108/14626000810917852

Anwar ul Haq, M., Usman, M., Hussain, N. and Anjum, Z.-u.-Z., (2014) Entrepreneurial activity in China and Pakistan: a GEM data evidence, Journal of Entrepreneurship in Emerging Economies, Vol. 6 No. 2, pp. 179 -19 3

Avnimelech, G., and Teubal, M. (2004). Venture capital start-up co-evolution and the emergence and development of Israel’s new high-tech cluster. Economics of Innovation and New Technology, 13(1), 33– 60. doi:10.1080/1043859042000156020

Avnimelech, G., and Teubal, M. (2006). Creating venture capital industries that co-evolve with high tech: Insights from an extended industry life cycle perspective of the Israeli experience. Research Policy, 35(10), 1477–1498. doi:10.1016/j.respol.2006.09.017

Au-Yong-Oliveira, M., Costa, J. P., Gonçalves, R., and Branco, F. (2018). The Rise of the Unicorn: Shedding Light on the Creation of Technological Enterprises with Exponential Valuations. Trends and Advances in Information Systems and Technologies, 967–977. doi:10.1007/978-3-319-77703-0 _ 94

Awate, S., Larsen, M. M., and Mudambi, R. 2012. EMNE catch-up strategies in the wind turbine industry: Is there a trade-off between output and innovation capabilities? Global Strategy Journal, 2(3): 205–223.

Bice, D. S. (1955). Richard Ettinghausen: Studies in Muslim Iconography, i: The Unicorn. (Smithsonian Institution, Freer Gallery of Art Occasional Papers, vol. I, No. 3.) xii, 209 pp., 48 plates, 5 figs. Washington, 1950. Bulletin of the School of Oriental and African Studies, 17(01), 172. doi:10.1017/s0041977x00106470

Bruche, G. (2009). The Emergence of China and India as New Competitors in MNCs’ Innovation Networks. Competition & Change, 13(3), 267–288. doi:10.1179/102452909x451378

Bruton, G. D., and Ahlstrom, D. (2003). An institutional view of China’s venture capital industry: explaining the differences between China and the West. Journal of Business Venturing, 18(2), 233

Caillois, R., Scott, R. (1982). The myth of the unicorn. International Council for Philosophy and Human Sciences. doi.org/10.1177/039219218203011901

CBInsights (2018). As Early-Stage Deals Fall in India, Unicorns Continue to Raise Mega-Rounds Research Brief. https://app.cbinsights.com/research/india-unicorns-investment-trends/

CBInsights (2019). The Global Unicorn Club. Available at: https://www.cbinsights.com/research-unicorn- companies

Chang, J., Cacciolatti, L., Ainurul, R., Ruiz-Alba, J.(2020). Strategic alliances and firm performance in startups with a social mission. Journal of Business Research. Volume 106, January 2020, Pages 106-117. doi: Volume 106, January 2020, Pages 106-117

Chen, S. (2012). Multicultural China in the Early Middle Ages. University of Pennsylvania Press. Encounters with Asia.

Cinar, E. M., Du, Y., and Hienkel, T. (2018). Chinese entrepreneurship attributes a comparative GEM data analysis. Journal of Entrepreneurship in Emerging Economies, 10(2), 217–248. doi:10.1108/jeee-03-2017-0016

Contadini, Anna. (2003). A Bestiary Tale: Text and Image of the Unicorn in the Kitāb naʿt al-hayawān. British Library Muqarnas. 20. 17-33. 10.2307/1523325.

Conti, A., Thursby, M., and Rothaermel, F. T. (2013). Show Me the Right Stuff: Signals for High-Tech Startups. Journal of Economics and Management Strategy, 22(2), 341–364. doi:10.1111/jems.12012

Crescenzi, R., & Rodríguez-Pose, A. (2017). The Geography of Innovation in China and India. International Journal of Urban and Regional Research, 41(6), 1010–1027. doi:10.1111/1468-2427.12554

Dean, J., Lovely, M., Wang, H. (2017). Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China. International Economic Integration and Domestic Performance. Pages 155-168

D’Souza, C., McCormack, S., Taghian, M., Chu, M., Sullivan Mort, G., and Ahmed, T. (2019). An empirical examination of sustainability for multinational firms in China: Implications for cleaner production. Journal of Cleaner Production, 242, 118446. doi: 10.1016/j.jclepro.2019.118446

De Massis, A., Frattini, F., and Quillico, F. (2016). What Big Companies Can Learn from the Success of the Unicorns? Harvard Business Review

Dou, X., Zhu, X., Zhang, J., Wang, J. (2019). Outcomes of entrepreneurship education in China: A customer experience management perspective. Journal of Business Research. Volume 103, October 2019, Pages 338-347. doi: 10.1016/j.jbusres.2019.01.058

Dowson, J. (1982). A Classical Dictionary of Hindu Mythology and Religion. Rupa and Co. New Delhi

Drori, G. S., Jang, S. Y., and Meyer, J. W. 2006. Sources of rationalized governance: Cross-national longitudinal analyses 1985–2002. Administrative Science Quarterly, 51(2):205–229.

E. C. L. During Caspers. (1991). The Indus Valley ‘Unicorn’: A Near Eastern Connection? Journal of the Economic and Social History of the Orient, 34(4), 312-350. doi:10.2307/3632455

Fleming, L., and Sorenson, O. (2004). Science as a map in technological search. Strategic Management Journal, 25: 909–928.

Glaeser, E. L. (2007). Entrepreneurship and the city. Ssrn Electronic Journal. Harvard Institute of Economic Research (32–33), 1626. https://doi.org/10.2139 /ssrn.1001108

Ghosh, S., and Bhowmick, B. (2014). Technological uncertainty: Exploring factors in Indian start-ups. IEEE Global Humanitarian Technology Conference (GHTC 2014). doi:10.1109/ghtc.2014.6970317

Grech, V. (2015). The influence of the Chinese zodiac on the male-to-female ratio at birth in Hong Kong. Journal of the Chinese Medical Association, 78(5), 287–291. doi:10.1016/j.jcma.2014.11.010

Goswami, K., Mitchell, J. R., and Bhagavatula, S. 2018. Accelerator expertise: Understanding the intermediary role of accelerators in the development of the Bangalore entrepreneurial ecosystem. Strategic Entrepreneurship Journal, 12(1): 117–150.

Guo H., Xie C., Jiang H., Huang W., Chen Y., Xue M. (2020) Training Strategy of E-Commerce Innovation and Entrepreneur Talents. In: Abawajy J., Choo KK., Islam R., Xu Z., Atiquzzaman M. (eds) International Conference on Applications and Techniques in Cyber Intelligence ATCI 2019. ATCI 2019. Advances in Intelligent Systems and Computing, vol 1017. Springer, Cham

Hitt, M.., Haiyang, L., and Worthington, W. (2005). ‘Emerging markets as learning laboratories: learning behaviors of local firms and foreign entrants in different institutional contexts. Management and Organization Review. Volume 1, Issue 3, pp. 353-380. doi: https://doi.org/10.1111/j.1740-8784.2005.0019a.x

Johnson, Noel D., and Nye, John V. C. (2011). Does fortune favor dragons? Journal of Economic Behavior and Organization, 78(1-2), 85–97

Kam, W. P., Ping, H. Y., & Crystal, N. S. J. (2017). Growth Dynamics of High-Tech Start-ups in Singapore a Longitudinal Study. National University of Singapore.

Kenney, M., and Von Burg, U. 1999. Technology, entrepreneurship and path dependence: Industrial clustering in Silicon Valley and Route 128. Industrial and Corporate Change, 8(1): 67–103.

Krishna, N. (2008). Sacred animals of India. Penguin Books India. ISBN13 9780143423201

Kopera, S., Wszendybył-Skulska, E., Cebulak, J., and Grabowski, S. (2018). Interdisciplinarity in Tech Startups Development – Case Study of the “Unistartapp” Project. Foundations of Management, 10(1), 23–32. doi:10.2478/fman-2018-0003

Kusmintarti, A., Asdani, A., & Riwajanti, N. I. (2017). The relationship between creativity, entrepreneurial attitude and entrepreneurial intention (case study on the students of State Polytechnic Malang). International Journal of Trade and Global Markets, 10(1), 28-36.

Lall S. 1990. Technological capabilities and industrialization. World Development 20(2): 165–186.

Lee, A. (2013). Welcome to the Unicorn Club: Learning from Billion-Dollar Startups. Available at https://techcrunch.com/2013/11/02/welcome-to-the-unicorn-club

Lougen, C. (2017). CB Insights. Journal of Business and Finance Librarianship, 22(3-4), 247–250. doi:10.1080/08963568.2017.1372018

Lundvall, B. 1999. National business systems and national systems of innovation. International Studies of Management and Organization, 29(2): 60–77.

Mao, W., Wang, W., and Sun, H. (2019). Driving patterns of industrial green transformation: A multiple regions case learning from China. Science of The Total Environment, 697, 134134. doi: 10.1016/j.scitotenv.2019.134134

Marrugo-Salas, L., Pérez-Morón, J. and Tordecilla-Salas, V. (2018). Unicorns aren ́t a fairytale, China is their valley. Online Asia Pacific Journal. e-ISSN 2344-8172 - Vol. 8, No. 13, julio-Diciembre 2018 I doi: 10.17230/map.7.13.

Meenakshi, N., and Sinha, A. (2019). Food delivery apps in India: wherein lies the success strategy?

Strategic Direction. doi:10.1108/sd-10-2018-0197

Melnichuk, M.V. (2018). Analysis of the investment activity regulation in priority sectors of the economy: A case study of China. European Research Studies Journal Volume 21, Issue 4, 2018, Pages 783-793

Ministry of Law, Justice and Company Affairs (2000). The Semiconductor Integrated Circuits Layout- Design Act, 2000 No. 37 of 2000, Republic of India, New Delhi

Monaghan, S., Gunnigle, P., & Lavelle, J. (2017). Firm-location dynamics and subnational institutions: creating a framework for collocation advantages. Industry and Innovation, 25(3), 242–263. doi:10.1080/13662716.2017.1315562

Morris, M.H., Schindeutte, M. (2005). Entrepreneurial values and the ethnic enterprise: An Examination of Six Subcultures. Journal of Small Business Management.Volume43, Issue 4. Pages 453-479. doi. org/10.1111/j.1540-627X.2005.00147.x

Muramalla, V. S. S. R., and Al-Hazza, A. M. (2019). Entrepreneurial Strategies and Factors Stimulate the Business of Tech Startups. International Journal of Financial Research, 10(3), 360. doi:10.5430/ijfr. v10n3p360

Narula, R., and G. D. Santangelo. 2009. “Location, Collocation and R&D Alliances in the European ICT Industry.” Research Policy 38 (2): 393–403. doi:10.1016/j.respol.2008.11.005

Pan, F., and Yang, B. (2018). Financial development and the geographies of startup cities: evidence from China. Small Business Economics. doi:10.1007/s11187-017-9983-2

Parker, J. (2007). The Mythic Chinese Unicorn. Friesen Press. ISBN: 978-1-4602-2408-3. Available at: http://chinese-unicorn.com/title/

Parthasarathy, B., and Aoyama, Y. (2006). From Software Services to R & D Services: Local Entrepreneurship in the Software Industry in Bangalore, India. Environment and Planning A, 38(7), 1269–1285.

Paul, J., and Mas, E. (2016). The Emergence of China and India in the Global Market. Journal of East-West Business. Volume 22, 2016 - Issue 1. https://doi.org/10.1080/10669868.2015.1117034

Pesek, W. (2014). The Japan Times. Available at: https://www.japantimes.co.jp/opinion/2014/06/23/ commentary/world-commentary/time-make-chindia-reality/#.XYqA_yhKjIU

Paul-Choudhury, S. (2009). Review: The Natural History of Unicorns by Chris Lavers and Bigfoot: The life and times of a legend by Joshua Blu Buhs. New Scientist 202(2702), 44. doi:10.1016/s0262-4079(09)60935-0

Qiao G., Ryan C., Zhou C., Lockyer T. (2020) The Entertainization of Business Event: The Case of Alibaba Computing Conference in Hangzhou. In: Ratten V. (eds)Entrepreneurship and the Community. Contributions to Management Science. Springer, Cham

Qihai, H., Xueyuan, L. and Jun, L. (2019): Contextualization of Chinese entrepreneurship research:an overview and some future research directions, Entrepreneurship and Regional Development, doi: 10.1080/08985626.2019.1640437

Reimer, M. (1997). Could there have been unicorns? International Journal of Philosophical Studies. Volume 5, 1997 – Issue 1. doi.org/10.1080/09672559708570844

Roy, R., Akhtar, F., and Das, N. (2017). Entrepreneurial intention among science and technology students in India: extending the theory of planned behavior. International Entrepreneurship and Management Journal, 13(4), 1013–1041. doi:10.1007/s11365-017-0434-y

Rungi, M., E. Saks, and K. Tuisk. (2016). The financial and strategic impact of VCs on startup development: Silicon Valley decacorns vs. Northern-European experience. In Industrial Engineering and Engineering Management (IEEM). 452–56, Washington, D.C: IEEE.

Sarton, G. and Siegel, F. (1951). Seventy-Seventh Critical Bibliography of the History and Philosophy of Science and of the History of Civilization (To March 1951). The University of Chicago Press on behalf of The History of Science Society. https://www.jstor.org/stable/226816 Vol. 42, No. 4, pp. 309-395

Saxenian, A.L. (2001). Bangalore: The Silicon Valley of Asia. Center for research on economic development and policy reform. Working Paper No. 91 Stanford University 579 Landau Economics Building.

Shane, S. A. (2009). Fool’s gold? The truth behind angel investing in America. Oxford University Press, New York, NY, p. 14.

Simon,J.P.(2016).HowEuropemissedthemobilewave.Info,18(4),12–32.doi:10.1108/info-02-2016-0006

Singh, D. (2017). Spatial Distribution of Startup Cities of India. The Urban Book Series, 73–84. doi:10.1007/978-3-319-47145-7_5

Surana, K., Singh, A., and Sagar, A. 2018. Enhancing SandT based entrepreneurship: The role of incubators and public policy. DST Centre for Public Policy, IIT Delhi.

Tan, J. (2001). Innovation and risk-taking in a transitional economy: A comparative study of Chinese managers and entrepreneurs. Journal of Business Venturing, 16(4), 359 3<6.

Teece D. (1992). Competition, cooperation, and innovation: Organizational arrangements for regimes of rapid technological progress. Journal of Economic Behavior and Organization 18(1): 1–25.

Timmons, J., and Spinelli, S. (2008). New venture creation: Entrepreneurship for the 21st Century, 8th ed Mc Graw-Hill / Irwin.

Trivedi, R. H. (2017). Entrepreneurial-intention constraint model: A comparative analysis among post- graduate management students in India, Singapore, and Malaysia. International Entrepreneurship and Management Journal, 13(4), 1239–1261. doi:10.1007/s11365-017-0449-4

Vajracharya, G. (2010). Unicorns in Ancient India and Vedic Ritual. Electronic Journal of Vedic Studies (EJVS) Vol. 17, Issue 2, 135-147 © ISSN 1084-7561

Van Praag, C., Cramer, T. (2001). The roots of entrepreneurship and labor demand: Individual ability and low-risk inversion. Económica, 68(269), 45-62

Yu, L., Duan, Y., and Fan, T. (2019). Innovation performance of new products in China’s high-technology industry. International Journal of Production Economics, 219, 204-215. doi: 10.1016/j.ijpe.2019.06.002

Wong, K.-F., and Yung, L. (2005). Do dragons have a better fate? Economic Inquiry, 43(3), 689–697.

Wu, X., Revi, A., Doshi, H. (2008). The Comparison of China and India: National Innovation System. India

China Institute

Xu, Z., and Sharifian, F. (2018). Cultural conceptualizations of Chinese zodiac animals in Chinese English. World Englishes. doi:10.1111/weng.12351

Yang, K. (2004). Institutional holes and entrepreneurship in China. The Sociological Review, 52(3), 371-189.

Yip, P. S. F., Lee, J., and Cheung, Y. B. (2002). The influence of the Chinese zodiac on fertility in Hong Kong SAR. Social Science and Medicine, 55(10), 1803–1812.

Zhang, M., Qi, Y., Wang, Z., Zhao, X., and Pawar, K. S. (2019). Effects of business and political ties on product innovation performance: Evidence from China and India. Technovation. doi:10.1016/j.technovation.2018.12.002

Zeng, X., and Dornberger, U. (2009). The locational factors and performance of high-tech startups in China. International Journal of Entrepreneurship and Small Business, 2009, vol. 7, issue 3, 312-323

Zhang, Y., Yang, X., and Ma, F. (2008). A quantitative analysis of the characteristics of rapid‐growth firms and their entrepreneurs in China. Journal of Small Business and Enterprise Development, 15(4), 675–688. doi:10.1108/14626000810917799

Zhang, J. (2011). The spatial dynamics of globalizing venture capital in China. Environment and Planning A, 43(7), 1562–1580. https://doi.org/10.1068/a43562.