In the hypercompetitive world of Chinese technology firms, survival depends on legitimisation, something that depends in large part on rhetoric. Small and medium firms, especially, must articulate their technological advancements and synchronise them with market and societal perceived wisdom. Tariq Malik writes that smaller firms need to be agile and ready to shift their narratives from abstract to concrete, or vice versa, depending on the changing tides of market demand and technological advancements.
In the unsettling and ubiquitous world of digital entrepreneurship, small and medium enterprises (SMEs) in the information and communication technology (ICT) sector make difficult choices to avoid errors of omission, failing to respond to an event, or errors of commission, responding incorrectly. They want to lead and to avoid incurring the cost of lagging behind.
Firms in China are no exception. The journey from inception to commercialisation is laden with challenges and opportunities in a world where resources are unfairly distributed. Here, I describe a comprehensive real-life study of technology commercialisation, the pivotal role of narratives and the implications for SMEs aiming at growth-oriented performance.
The crux of commercialisation
Commercialisation in the high-tech sector transcends a mere transactional event between entrepreneurial firms and their environments. That’s especially true when survival depends on legitimisation. Legitimisation depends on rhetorical narratives. The commercialisation process follows a complex narrative journey. Legitimisation games encapsulate how SMEs articulate their technological advancements and synchronise them with market and societal perceived wisdom.
My discoveries from this study pivot from construal level theory, which shows that people transcend the self to understand an object far removed from direct experience, to perceptual wisdom, that is, relying on our senses.
The compatibility between technology and narrative significantly contributes to the success of an enterprise, particularly through return on employees, “the idea that the employer-employee relationship has mutual value that lasts well beyond the office goodbye party”. This is about avoiding errors of omission and commission.
Abstract to concrete narratives
Either highly abstract or concrete narratives alone can disturb the balance, and imbalance is the source of omission and commission errors. Abstraction is needed for endurance, core values, and reasoning. The concreteness is needed for experience, relevance, attention and engagement. But we rarely address these anomalies in the anxiety of uncertainties and in the excitement of success.
Especially when growth, performance and social value are intertwined, this balance is a critical ointment for curing the gaps between the firm and its market. The balanced narrative spectrum in technology commercialisation spans from superordinate (abstract, visionary and broad) to subordinate (concrete, specifics, tangible and direct deployment).
This abstract versus concrete notion of commercialisation narratives has a psychic distance implication in time: future versus the past. The distant future/abstract narrative fit induces positive outlook and sentiments, while the present elicits costs and threats to the product and service of the firm. Therefore, by using abstract and concrete legitimisation, the firm resolves a common problem in the high technology sector.
Insights from China’s high-tech SMEs
The empirical foundation of this study is robust, drawing evidence from SMEs across 500 cities in China. It uncovers a fascinating interplay between business technology and firm performance, moderated by the narrative used in the commercialisation process. The findings indicate that a concrete narrative enhances the link between business technology and firm performance, effectively bridging the gap between the firm’s offerings and its audience.
The role of perceptual wisdom
Perceived wisdom is pivotal in understanding how different levels of abstraction in narratives influence the commercialisation process, because the human construal levels (from abstract to concrete thinking) oscillate between experiential reactions and vicarious ideas. High-level perceptual wisdom aligns with abstract narratives, suitable for visionary, broad-scope technologies. Conversely, low-level perceptual wisdom aligns with concrete narratives, fitting specific, detail-oriented technologies. This alignment plays a crucial role in legitimising the business in the eyes of its audience.
SMEs’ legitimisation journey
For SMEs, legitimising their technological advancements is not just about showcasing their innovations. It’s about resonating with their audience at the right perceptual level. The study underscores the importance of narratives in this legitimisation process, suggesting that the right narrative can significantly enhance the SME’s credibility, desirability, and appropriateness in the eyes of its audience.
Performance and growth: beyond survival
The ultimate goal for SMEs in the information technology sector is to survive and thrive. The study illuminates the performance measures most relevant to these enterprises, focusing on return on employees. This metric reflects the direct link between the firm’s legitimisation efforts and its audience’s positive response, reflecting on its survival and growth.
Implications and path forward
The insights from this study have profound practical implications. Understanding the interplay between technology, narrative, and performance is crucial for SMEs. It’s about choosing the right narrative for the right technology and audience. For policymakers, the study highlights the need for a balanced ICT sector where technology and narratives are aligned for sustainable performance.
Conclusion
As SMEs in China’s ICT sector navigate the complex terrain of digital entrepreneurship, this study offers a beacon of understanding and guidance. It’s not just about the technology but how it’s communicated. The right narrative can make all the difference, turning potential into performance and ideas into impact. As these enterprises look forward, the interplay between technology, narrative, and perceptual wisdom will continue to shape their journey towards growth-oriented performance.
In this ever-evolving narrative, the role of perceptual wisdom becomes increasingly significant. It’s not just a theoretical construct but a practical tool that SMEs can leverage to align their technological narratives with the perceptual realities of their target audience. By doing so, they can navigate the complex web of market expectations, regulatory landscapes, and competitive pressures.
As digital entrepreneurship evolves, the narratives surrounding technology commercialisation must also adapt. This means that SMEs need to be agile, not just in their technological innovations but also in their storytelling strategies. They must be ready to shift their narratives from abstract to concrete, or vice versa, depending on the changing tides of market demand and technological advancements.
In conclusion, the journey of SMEs in China’s ICT sector is emblematic of the broader narrative of digital entrepreneurship. It’s a journey marked by the constant interplay between technology, narrative, and perceptual wisdom. As these enterprises continue to forge their path, their success will depend on the technologies they develop, the stories they tell, and the perceptual connections they forge. This is the essence of growth-oriented performance in the digital age, where technology and narrative converge to create a new paradigm of commercial success.
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- This blog post is based on Digital Entrepreneurship and growth-oriented performance: commercialisation narrative of SMEs in the ICT sector in China, Journal of Chinese Economics and Business Studies.
- The post represents the views of the author(s), not the position of LSE Business Review or the London School of Economics and Political Science.
- Featured image provided by Shutterstock
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In an era marked by disruptive technologies and the Anthropocene, the commercialization of high-tech innovations is heavily influenced by how companies leverage the rhetoric of hyper-nationalism and animosity towards perceived enemies, which may include both environmental threats and geopolitical rivals like the US. This rhetoric often demands a balance between abstract ideals and tangible realities. The ongoing decoupling issue highlights this dynamic: while the situation may be challenging, Chinese high-tech firms might turn to commercializing older technologies that struggle to compete with those from the US or Taiwan. Despite this, the government is likely to continue investing in these outdated technologies, influenced by nationalist rhetoric. SMEs in China can ride the bandwagon by filling up the niche in each stage of the entire supply chain.
A thoughtful comment.
Yes, small firm need an interesting story. From the boss, to every employee.
Your story makr this firm alive.
There is a very important Chinese saying that seven points of doing and three points of saying， adding up to 10 points perfection. This article mentions a very important concept, how to communicate with customers, especially how to combine the storytelling strategy and technology advanced to communicate with customers to form an effective impact
This is a great article, which makes me understand a lot when I do not know the development principle of various enterprises.Not just technology but also the way to communicate can make the enterprises better. And the perceptual wisdom is really important to help them to develop.This is what I learn from the article. Tariq’s writing also got me thinking.
It is my essay, so I cannot write comments for myself. However, I request friends and colleagues to say something!
This topic sounds very interesting and inspiring. For consumers, life is filled with a myriad of technology promotions, but what truly resonates with them are the stories that create a connection. This resonance is influenced by various factors, making it worthwhile for SMEs to explore deeply. Look forward to reading more insightful thoughts.
I learned the true context of the two types of errors from the author: Omission and Commission. He helped me clarify these errors in our decision makings, and I used them effectively in my publication:
https://link.springer.com/article/10.1007/s44265-023-00015-0
I agree that the dynamic interplay between technology, narrative, and perceptual insight that defines the journey of SMEs in China’s ICT sector. Indeed, the evolution of these enterprises underscores how crucial it is for digital entrepreneurship to harmonize innovative technologies with compelling stories and perceptual understanding. As these SMEs navigate the digital landscape, their ability to seamlessly integrate these elements will be key to their growth and success.
As a Vietnamese researcher who is in the process of researching technology-related issues in the field of business management, I understand that the perception of business organizations on the process of technological innovation is closely related to their existence and sustainable development, especially in the current context of globalization. The characteristics and results of the process of approaching and changing the perception of the digital business story of small and medium-sized enterprises in China mentioned by Professor Tariq in this article have helped me a lot in promoting my own research process. In many Vietnamese enterprises, business people are still struggling with the question: Is technology promoting business activities or becoming a barrier? This article helps us to some extent answer that: In order to achieve long-term value from investing in digital technology transformation, businesses need to have new and practical thinking about applying technology to operating work processes.
Better to understand if there are some examples of the arguments!
I am working with the author on learning preferences and performance based on Q-proximity versus A-proximity. In the forthcoming article, we built on the author’s previous work on the same model he has developed over the last 15 years. I am so proud to see his work gaining attention, and I will be looking forward to contributing our focus on Management & Business Education to deal with the institutional sclerosis ‘Tariq’ has proposed.
I am proud to see my professor, Tariq H. Malik, who is also my co-author and a friend has appeared on the LSE website! Yes! I learnt the importance of narratives in today’s digital/social media. Those narratives are driving our collective actions.
Professor Tariq H Malik’s article highlights the importance of understanding the interface between narratives and technology in the digital environment. The article raises an awareness through weaving a lot of information and arouses the reader’s attention in the context of Chinese SMEs. Thank you.
This insightful article beautifully encapsulates the intricate dance between technology, narrative, and perceptual wisdom that SMEs in China’s ICT sector must master to succeed in today’s digital landscape. The article underscores the importance of adapting not only technological capabilities, but also the ability to craft compelling narratives that resonate with target audiences. This holistic approach to digital entrepreneurship fosters growth-oriented performance and pave the way for sustainable commercial success in an era where technology and narrative intertwine to create new frontiers of opportunity.
A very timely and interesting article. It highlights the importance of communication for the success of digital firms.
This article delves into the complex process by which small and medium-sized technology enterprises in China achieve commercialization in a highly competitive market environment through narrative strategies. The author particularly emphasizes the critical role of balancing abstract and concrete narratives in the legitimization of enterprises and their market acceptance. This is a fascinating perspective, applicable to the analysis of various aspects of life, offering a concise yet potentially profound philosophical viewpoint.
ICT provides unprecedented opportunities for SMEs’ innovative development. However, in the face of the resource monopoly ability of large enterprises, SMEs’ ability to survive and develop in the cracks of the jungle is obviously not enough to rely solely on ICT. The innovation capability of SMEs depends more on a favorable business environment and policy preferences.
A very insightful perspective on the Chinese context, and SMEs are always a good topic for discussion. This piece provides long-term thinking about how they can survive, not just focusing on their purpose but also emphasizing the importance of the process.
Today, I respond to SS (Sheffield and Shannel), whose Chinese names are Pang and Zhao. They correctly observed that the process is more critical than the target. Because we have long neglected the process, our focus and incentives have shifted towards the outcome. When the target becomes the ultimate goal, we lose on both fronts: subjective well-being and health suffer from process neglect, and the desired outcome is compromised, as misaligned labor leads to wasted effort. Kong Zi (Confucius) insightfully addressed this balance, recognizing the costs of imbalance. His analysis remains relevant:
“Learning without thought is labor lost; thought without learning is perilous.”
In the sciences, learning entails repetition and hard work, but without insights and complementary thought from the social sciences and arts, it risks becoming rigid. Effective learning demands not just concrete activity but also attention to abstract ideas, creative flexibility, and subjective values. Conversely, thought without empirical testing and validation can lead to peril, as ideologies often lack grounding in reality, fueling conflicts. For example, current tensions between China and the USA stem more from ideological narratives than from substantive understanding. Wisdom has deep roots in both Greek and Chinese traditions, though their paths diverge due to unique evolutions and historical contingencies. This wisdom, applicable to individuals, extends to firms and national economies alike, where process and outcome must be harmonized.
I fully concur with the overarching concepts articulated in the paper. The idea is not only intriguing but also possesses considerable potential for practical application. Since the beginning of 2024, I have been actively engaged in contemplating and researching this subject, which has greatly captured my interest. I am particularly impressed by the firm’s proactive impression management strategy. This approach aims to foster positive evaluations from external stakeholders, thereby achieving pragmatic legitimacy in the competitive landscape. The perspectives presented in the article closely align with my own reflections and inquiries in this domain. I find it compelling how effectively such strategies can influence stakeholder perceptions and enhance a firm’s reputation and legitimacy in the market and society.
This is a fascinating analysis of Chinese technology firms, highlighting the importance of narratives and discourses in shaping their competitive strategies and outcomes. It would be good to read full papers of case stuides with more details of evolutionary paths. Congratulations on your insightful argument!
“ICT provides unprecedented opportunities for SMEs’ innovative development. However, in the face of the resource monopoly ability of large enterprises, SMEs’ ability to survive and develop in the cracks of the jungle is obviously not enough to rely solely on ICT. The innovation capability of SMEs depends more on a favorable business environment and policy preferences.” in case you could not read it from the web.
This study is very interesting, and it speaks to how as digital entrepreneurship evolves, the narrative around the commercialization of technology must also adapt. This means that smes need to be flexible, not only in terms of technological innovation, but also in terms of storytelling strategies. They must be prepared to shift their narrative from abstract to concrete, and vice versa, in response to changing trends in market demand and technological progress. It gave me a lot of inspiration after reading it
I have known Tariq for 25 years, and I found him always surprising because he can manage contradictions very well and very fast. I calle me ‘real polymath’. I am proud of him after he told me that his article was invited by Helena, the editor.
How can Chinese smes achieve development under the Chinese system? Apart from the fact that they need to explain their progressivity to the market and consumers, what else needs to be done
In the process of business growth, small and medium-sized enterprises in science and technology often face financing difficulties, fierce market competition and other problems. In order to solve these problems, the Chinese government has introduced a series of policies to encourage scientific and technological innovation, reduce the tax burden of small and medium-sized enterprises, and optimize the business environment. These policies not only provide financial support, but also promote compliance with laws and regulations in the innovation process, improving corporate compliance, and thereby promoting long-term sustainable development.
SMEs must establish legitimacy in the marketplace. Entrepreneurs should recognize that the evolution of their narratives—whether moving from abstract concepts to concrete strategies, or the reverse—must align with shifting market demands and technological progress. This principle applies universally to entrepreneurs across all countries. I look forward to reading Tariq’s paper and gaining valuable insights.
First off, I would invite anyone who found this piece interesting to read the full article to get intrigued on the subject at a new level. There is a lot of room for expansion in terms of academic research on the subject. Some of the questions that arise are how and why narratives in the English language generated in the Chinese cultural context and if the selected language of story telling offers any nuances in terms of performance and why. Thanks for sharing for this gem.
Two years ago, we invited Tariq to give a seminar on university students’ learning preference and performance based on his 15 years efforts to develop a Q-proximity versus A-proximity of Chinese University Students in the Business and Management Education. He had mentioned in the passing about apprehension of Chinese students taking up entrepreneurial routes to life. Now I understand what he might have been talking about the ICT and semiconductor issues that he had mentioned in the seminar. I will further read the orginal article, this brief of it and reflect on it in a future post. Best of luck, Tariq!
Storytelling or narratives is one important and interesting topic in tech-commercialisation and digital entrepreneurship. SME in China are no exception. This study offers further understanding to the mechanism of narratives. So all of entrepreneurs should realize that entrepreneurship is not just about the technology but communication and marketing with the stakeholders and shareholders.
I know Tariq when he came to DUFE in October 2010, all the way from London and then Singapore to Dalian. I was a PhD student and his Research Assistant, and both of us benefitted from our cooperation and interaction since them. He moved to Liaoning in 2017, and our frequency of interaction got reduced. He had started the project on SMEs and would ask all the students and teachers: Why do you think SMEs fail in China? He would instruct us not to give him a text book answer. I am so happy that his work on SMEs success and failure saw light of the day.
The paper delves deeply into the challenges and opportunities faced by small and medium-sized enterprises (SMEs) in China’s technology sector during the process of technology commercialization. It covers not only the innovation of the technology itself but also emphasizes the importance of narrative in gaining market acceptance and legitimacy. It provides a comprehensive perspective, ranging from theoretical to practical aspects, and from the abstract to the concrete, showing how businesses can adjust their narrative strategies amidst changing market demands and technological advancements.
Overall, the paper is a profound exploration of technology commercialization and business narrative strategies. It provides valuable insights for SMEs on how to achieve success in a competitive market and offers recommendations for policymakers on how to support these enterprises. It is an essential resource for businesses and researchers seeking breakthroughs in the technology sector.
I have known the author since he joined Liaoning University in 2017. Then I was HR executive, and we jointly made a good progress towards reputation building of our institution. Three of us once went to Benxi where pharmaceutical firms are located, and Tariq was keen on seeing the place. We also had set up a tent along the water channel and made BBQ in a valley there for our lunch. That was one of the episode of our coordination and joint efforts.
I was expecting something on biopharma companies failure and success in China through the lenses of their narratives. It turned out to be ICT in the visibility. Perhaps the Biopharma sector will become visible to some media outlets. I am very proud of Tariq’s as a friend and a colleauge. As a person responsible for managing his research projects, I used to have the list of his items in the pipeline. For the last three years, I have different assignment. But I am looking forward to working with him again soon!
Very interesting insights, professor Tariq, for me, using narratives to promote legitimation is also a focus of communication studies. SMEs are concerned with survival first and growth second. Understanding the interaction between technology, narratives and performance is crucial for SMEs.
The article provides analysis on the need for firms to be agile in aligning their technological advancements with market perceptions is especially relevant in today’s fast-evolving landscape. A great read for anyone interested in the intersection of technology, communication, and market strategy.
This article sheds light on the importance of storytelling for the success of Chinese tech SMEs. I found it insightful how balancing abstract and concrete narratives can enhance both market engagement and company performance. It’s a great reminder that it’s not just about the technology itself, but how effectively companies communicate their innovation. A very valuable read for anyone in the tech industry!
A prolific researcher in the field of innovation management and policy, Tariq Malik has written yet another masterpiece that offers timely insights into the complex interplay facing the contemporary Chinese tech firms between technology, narrative and perceptual wisdom. While the highly abstract construal level theory aporopriately informs the study being undertaken, the author successfully elaborates on its relevance from a practical point of view, highlighting an abstract-concrete dichotomy which itself lies at the very heart of the main theme of the study. The research and the conclusion it draws perhaps go beyond the common-sense understanding of many – not just that of the laymen – regarding the role and importance of storytelling in the success of SMEs. The study also transcends a narrow marketing perspective to place the whole discourse in a broader context that may serve to appeal to a larger audience than otherwise. Another merit, desirable for any study of this kind, is that the sufficiently large sample of SMEs across 500 Chinese cities employed in the study renders the findings robust and convincing to a great extent.
Very interesting that also Chinese corporations should think about their narrative! This is clearly related to the new phase of economic development that such a successful economy should somehow face. I see here a major difference with Japanese corporations in the 1970s and 1980s: they invested massively on product quality. Now Chinese corporations, after a long period of price-based competition, should adjust their aim.
Professor Malik once again “nails it.” Not surprising, since he has produced a wonderful chapter on the semiconductor industry in China forthcoming in Sage’s Handbook of the Chinese Economy and Financial System (ed. Ron Schramm).
I saw Tariq’s presentation online at Academy of Management (AOM) annual conference in Chicago, and I wrote to him if we can meet at coffee to talk. Since last year at EIBA conference in Lisbon, Portugal, this was the chance we were able to meet. While talking to him, I found out that my supervisor/director, Professor Liu of CAS in China is Tariq’s friend. This is how small the world of scholars is. I am thankful to him for giving me quick tips how to management my dependent variable in the article I was working on.
Now, why SMEs success or fail is of interest to all people. Yes, I tend to agree in the underlying tone in the paper. First, it is more often than not that the incentives to enter, where, when, how and why are different in China than in the west, in high or low tech firms. So, they end up having everything in one basket. Second, it is the path-dependent issues that Tariq often talks about institutional scleroses in China. I have looked at one of his article on the education system in China, and he talks about what is taught, how is it taught, and what gains glory or disdain in publications.
Innovation and storytelling are two key requirements for a hi-tech company, and this is particularly true in China. The paper studies this phenomenon. Tariq Malik chose a sample of ICT companies with 6 to 1,000 employees, which may be beyond company’s initial founding stage. A similiar question also worth to be examed. If we focus on the early-stage startups, which contributes more to a high-tech company’s survival or success, technological innovation itself or the ability to tell a story? Maybe the later.
This article looks very professional. I have no idea why SMEs fail or succeed in China. What we are studying now is intelligent transportation and robots, which are very different from the previous financial and financial topics. I don’t study these things now, and I can’t understand these issues. But I asked AI to make a critical comment in the context of these previous sentences. It gave me the following:
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“The article from LSE Business Review presents a polished take on the role of storytelling in determining the success of Chinese SMEs, but its applicability across different industries is questionable. For someone unfamiliar with China’s SME dynamics, particularly in cutting-edge fields like intelligent transportation and robotics, the emphasis on narrative oversimplifies more critical factors such as technological advancements and market demand. These fields are distinct from traditional finance topics, where storytelling might play a larger role. In emerging sectors, success relies more on innovation, technical expertise, and regulatory alignment, making the article less relevant to those focused on these newer industries. This gap may leave those studying advanced technology feeling disconnected from the article’s claims”.
You present a compelling analysis of how storytelling plays a pivotal role in the success of Chinese tech SMEs, particularly in the ICT sector. Your emphasis on the balance between abstract and concrete narratives is insightful, as it highlights the need for firms to align their messaging with both their technological advancements and market demands. By grounding your argument in construal level theory and perceptual wisdom, you effectively demonstrate how different narrative levels can influence a firm’s legitimacy and growth. The empirical evidence from SMEs across China adds depth to your claims, showing the tangible impact of narrative strategies on firm performance. This piece offers valuable guidance for SMEs navigating the complex digital landscape, stressing that innovation alone is not enough; how it is communicated is equally critical for success.
However, there are some areas where further development could enhance the analysis. One potential shortcoming is the limited discussion of how cultural factors specific to China may affect the storytelling strategies of SMEs. While the focus on narrative structure is robust, integrating a cultural dimension—how Chinese values, business norms, or consumer expectations shape these narratives—would make the analysis more contextually grounded. This addition could also explore how these cultural influences impact the perception of abstract versus concrete narratives.
Another area for expansion is the role of external forces such as government policies, global competition, and regulatory pressures. Although the analysis touches on market dynamics, a more explicit discussion of how these external elements influence the narratives SMEs adopt could provide a more comprehensive picture. For instance, highlighting specific cases where policy shifts or international market demands have necessitated a change in narrative approach would deepen the practical relevance of the findings.
Additionally, while you offer strong insights into the SME-commercialization process, it would be useful to explore how larger tech firms have employed similar narrative strategies and how SMEs can learn from or differentiate themselves in this context. A comparison between SMEs and larger firms might offer valuable lessons in narrative agility and adaptation across different business scales.
By addressing these aspects—cultural influences, external pressures, and the comparison with larger firms—you can broaden the scope of your argument and provide readers with a more nuanced understanding of the role of storytelling in tech commercialization.
This article highlights the critical role of narratives in the commercialisation of technology for SMEs in China’s ICT sector. It underscores the importance of balancing abstract and concrete narratives to resonate with market and societal expectations. This balance is essential for legitimisation and avoiding errors in decision-making. The insights remind me of how storytelling in business can significantly impact a company’s success, much like how brands globally use strategic narratives to connect with their audiences and drive growth.
Great write-up and so inspirational
Dear Professor Tariq,
Many thanks for your interesting article. I was wondering what China`s glorious economic history, as described in the following book, has contributed to the world-class development of China`s technology enterprises.
https://www.cambridgescholars.com/product/978-1-0364-0627-1
Yes, story make tha small firms alive.
Thank you for this thoughtful article outlining the concepts, Tariq. I look forward to reading more about it from you as you dig into the data and the cases that exemplify it.
Legitimizing startups and SMEs is of great importance to the founders and their success. We can see the theoretical situation is similar here in Japan were I live and work. Young and small firms here seem to rely on concrete evidence as key to their legitimation – that means technical specifications above all. After getting a start based on technical ability, they next rely on price as well as person relationships to close the deal, it seems to me. I suspect that they would do well by more successfully developing and telling compelling narratives about themselves. This might help them to avoid the price squeeze that seems so inevitable here in Japan as their supplier status matures.
I am sure tech SMEs in Japan have something to learn from this!
Professor Tariq’s insightful article underscores the critical role of storytelling in bridging technology and success for Chinese SMEs. By dissecting the intricacies of narrative legitimization, he provides a compelling argument for the importance of agility in storytelling strategies. The detailed exploration of the abstract-concrete narrative spectrum and its implications for technology commercialization resonates deeply, offering valuable guidance for digital entrepreneurs navigating today’s hypercompetitive landscape
I think, the article giving a valuable insights for policymakers and entrepreneurs alike, demonstrating that in an ever-evolving new digital landscape, the way of technology is communicated can make the difference between success and failure. The fusion of technology and storytelling is clearly shown to be a pivotal factor for survival and growth in the hypercompetitive Chinese tech market. good to be know about article and understand about China technology merket.
Yes, ICT is crucial for SMEs. However, they need to have strong cash flows to support the upgrade of ‘hardware’, which is a potential of big challenges for them. The adoption of supply chain finance would be a possible method to improve the capital flows through collaborations with different tiers of supply chain players.
Thanks for these valuable insights. Very useful. One challenge for disruptors is that the narrative that generate customer legitimacy may not be the same narrative that lead to regulatory legitimacy. The challenge of coming up with a single narrative that can generate legitimacy coherence across multiple audience is not easy.
Gratitude to Professor Ishtiaq Mahmood of the National University of Singapore for expressing a large amount of information in a brief exposition.I have known him for many years at conferences, but during the last few years in this period, we had a chance to talk at coffee when I was in Singapore.
Professor Mahmood:
His comment highlights a key challenge for disruptive businesses: crafting a narrative that resonates across diverse audiences. Disruptors often rely on narratives to establish legitimacy, but the story that appeals to customers, emphasizing innovation, convenience, or cost savings, may not align with the narrative needed to gain regulatory approval, which often focuses on compliance, safety, and stability. In other words, regulators are looking for science; customers are looking for novelty, functionality, and economy. This divergence creates a strategic dilemma for companies trying to appeal to both groups simultaneously.
At the heart of this challenge is the concept of “legitimacy coherence” — ensuring that a single narrative satisfies the expectations of different stakeholders. For disruptors, customers and regulators often have conflicting priorities, making it difficult to craft a unified message. For instance, while customers might celebrate a company’s bold, rule-breaking approach, regulators might see this as a reason to deny approval or impose restrictions. Striking the right balance requires careful framing and adaptability in storytelling.
Ultimately, this complexity underscores the importance of narrative strategy in disruption. Crafting a single, coherent narrative that bridges these gaps demands a deep understanding of audience needs, cultural contexts, and the broader market environment. Without this coherence, disruptors risk alienating key stakeholders or facing resistance that could hinder their growth and innovation.
My complimentary note!
I often allude to Narrative Alignment Theory (NAT) on a spectrum of alignment versus misalignmented, at varying levels of optimality for different targets. The solution to achieving legitimacy coherence lies in aligning narratives across different stakeholder groups without diluting their distinct priorities. NAT emphasizes that successful narratives must bridge the gap between diverse audiences by harmonizing their values, expectations, and goals. For disruptors, this means using a shared abstract narrative—focused on overarching themes like innovation, societal progress, or economic empowerment—to create a foundation of trust and purpose. This abstract narrative serves as a “meta-narrative,” aligning stakeholders at a conceptual level while providing a unifying story arc.
At the same time, NAT underscores the need for tailored sub-narratives that address the concrete, audience-specific concerns of each stakeholder group while remaining anchored to the shared meta-narrative. For example, a disruptor might craft customer-facing narratives emphasizing affordability or convenience, while regulatory narratives focus on compliance and public value. By embedding audience-specific details within the overarching narrative framework, the disruptor can create a sense of coherence that satisfies stakeholders’ diverse needs without appearing fragmented or contradictory. This alignment ensures that the narrative remains flexible yet unified, fostering legitimacy across both competitive markets and regulatory landscapes. In short, neither buffers nor bridges along lead us to desired level of NAT. Instead, some level of balance is the call of the day.
I am an accounting academic, and Tariq is an interdisciplinary scholar. His ways and views can be different. He has written at Macro level, Industry level, Firm level and even Individual level in his recent article on students learning based on Q-proximity versus A-proximity in Chinese universities.
From an accountant academic perspective, addressing why Small and Medium Enterprises (SMEs) in China fail in response to different narratives used for commercialization can revolve around several factors. These are my views, and I incorporate narratives in this debate.
1. Mismatched Financial Narratives:
SMEs often construct narratives around their business model, growth potential, and market opportunity to attract investment and customers. However, if these narratives do not align with the company’s actual financial situation, it can lead to mismanagement of expectations. For instance, presenting overly optimistic financial forecasts that don’t consider market volatility or regulatory constraints may lead to unsustainable financial strategies, including debt overextension or poor cash flow management.
2. Regulatory Misalignment:
SMEs may fail due to a lack of understanding or alignment with China’s complex regulatory environment. Companies promoting narratives of rapid growth or technological innovation may not sufficiently account for the stringent local regulations governing industries like technology, finance, or health. Financial reporting inconsistencies or non-compliance with tax regulations could result in penalties, leading to financial strain.
3. Weak Capital Structure:
The narratives used by SMEs to raise capital can sometimes backfire. Many SMEs in China rely on informal financing channels or focus on short-term gains rather than sustainable growth. If the narrative emphasizes quick returns or overstates profitability, investors may pull out prematurely, leading to liquidity crises. Furthermore, the reliance on high-interest informal loans can result in untenable financial burdens.
4. Ineffective Cost Management and Pricing Narratives:
Often, SMEs craft narratives around competitive pricing to capture market share, which can erode profit margins. This can lead to cost-cutting in crucial areas like R&D or quality control, affecting long-term sustainability. From an accounting perspective, the failure to maintain appropriate margins while emphasizing low costs to attract customers may create a cash flow imbalance.
5. Overemphasis on Growth Without Financial Discipline:
In some cases, SMEs prioritize growth at all costs, constructing narratives that focus solely on market share or scaling up. This can lead to reckless spending and failure to reinvest in core operations. As growth narratives dominate, financial management practices may be sidelined, leading to inefficient asset utilization, poor liquidity, or excessive leveraging.
6. Transparency and Trust Issues:
SMEs in China, particularly those using high-growth or disruptive innovation narratives, may sometimes exaggerate their financial performance or underreport risks. This can erode trust among investors, customers, and regulators. A lack of transparency in financial reporting, or discrepancies between the narrative and the actual financial statements, can lead to diminished investor confidence, making it difficult to secure funding or maintain business operations.
Well, I am Jacky and I help Tariq in his research related activities such as booking conferences, arranging hotels, taking of his documents, and anything related to his research work. I feel very happy when Tariq gets Awards like he got in France for his best paper, or he publishes his articles such the one in TFSC, or even his successful blog on the LSE website based on his scientific article. So, I can say good things because I enjoy assisting him and working with him, but I am less than qualified to reflect on professional issues of scholarly caliber. I am going to put his achievements on our university website.
Professor Will Baber at Kyoto University, Graduate School, pointed out an interesting observation. He wrote to me, “Hi Tariq, a good piece – I left a comment. Two items: The picture looks like Indonesian shadow puppets. I am not an expert, but perhaps you could confirm that you got a suitable Chinese cultural image for the blogpost. Also, ” people transcend the self to understand an object far removed from direct experience, to perceptual wisdom, that is, relying on our senses.” Should this be ” people transcend the self to understand an object far removed from direct experience, to perceptual wisdom, that is, relying on our interpretation of the information.” Perhaps I have not grasped it right – I think perception is what we do in the immediate proximity of something, but cognition and interpretation are what me must do with distant, mediated, and abstract things.
Tariq (I) replied: “Hi Will, I am delighted to know you have added a comment, and you have also shared an amount of rich information, especially after giving a dedicated attention to it. Let me add responses to your comments.
a) If you allow me, I want to add your material sent to me (your questions and my responses), I will post them in comments.
b) LSE Business Review did almost everything, and I am very thankful to them, especially Helena. She had sent me an invitation to write a 1000-word preview of my article based on which you see this preview. I had agreed, and I did it about six months ago. Six months had passed and I heard nothing.
c) I had thought they did not want to publish it because of me, my location or my institution. These suspicions occurred because I had a long experience with academic journals who are looking for impact factors and not justified knowledge. Surprisingly, just as I was returning from the AOM conference in Chicago to London, from where I as heading to REIMS for a sports conference, I got this update that my essay (preview) was ready. Helena apologized for the delay and showed me the edited and improved version. This is how it all developed, and I am extremely delighted to have this visibility–thanks to Helena’s invitation.
d) Regarding your comment on perception and proximity on the one side and cognition and distance on the other, I am very much with you on that. You have got it right. The theories has been perfecting this duality for 3 decades.
e) Any comments get vetted by LSE Review team, and it takes a day or so to pass the filter. Usually, formal emails addresses are required to confirm the right people.
Hence, unless Helena invites me for another essay later, I cannot just barge into the system and write a blog.
Thank you to all who have comment. I am here to help those who cannot get access or facing difficulty posting comments. Trust me, I will not change your comments, no matter how critical you are about my article, the preview or me!
Best
Tariq
A really insightful piece that highlights the importance of discourse and socially constructed narratives to technology success! Looking forward to reading me about this fascinating research!
I am Sandy (Qiusha Liang), with a PhD from Dongbei University of Finance and Economics (DUFE), working as a lecturer at LNNU-MSU College of International Business, Liaoning Nornal University (LNNU), which is a Sino-Foreign joint institute. Also, I am working research on Sino-Foreign university collaboration in China. This orientation with Sino-Foreign ventures brought me to interact with Tariq.
I have known Tariq since 2010, and we were his first class at Surrey International Institute, DUFE. Now I am an academic myself. We became colleagues for several years. Tariq is currently the director of the International Center for Organization and Innovation Research at Liaoning University. He is mainly engaged in research on technology innovation management, international business, and entrepreneurship, and has made significant achievements in the field of technology innovation management.
From my perspective, the primary reasons for the failure of SMEs in China could be inadequate funding, ineffective management, inability to adapt to change, product quality issues etc.
Tariq Malik, a valued member of our advisory board at management revue – Socio-Economic Studies, offers a thought-provoking perspective on the role of storytelling in Chinese tech firms. His emphasis on the concept of “perceptual wisdom,” suggesting that SMEs must align their narratives with the cognitive frameworks of their audience, resonates deeply with the challenges these firms face in the competitive tech landscape. It opens a promising path for further exploration and practical application.
While Malik emphasizes the importance of perceptual wisdom, the blog post leaves room for a more extensive examination of its practical implications. It sparks intriguing questions that warrant further consideration: How can firms effectively gauge the “perceptual levels” of their audience? What strategies can they employ to tailor their narratives accordingly? Addressing these questions would undoubtedly enhance the applicability of Malik’s research, providing valuable guidance for SMEs seeking to leverage the power of storytelling for commercial success.
Overall, Malik’s work serves as a catalyst for further discussion and exploration in this fascinating area, encouraging a more nuanced understanding of the interplay between narrative, perception, and success in the Chinese tech sector.
This article highlights the critical role of storytelling in technology commercialization and success for Chinese SMEs in the tech sector. Drawing on empirical research and theoretical insights, it shows how narratives shape perceptions, enhance trust, and drive performance. SMEs must adapt their narratives dynamically to match market demands and technological advancements, emphasizing the importance of agility in storytelling strategies. The study also underscores the need for balanced narratives and the role of perceptual wisdom in connecting technologies with audiences. Ultimately, the article provides valuable insights for SMEs, policymakers, and researchers alike.
Tariq, a former colleague of my research director, professor Meng of DUFE in Dalian, is a friendly and caring scholar. This character of him prompted me to say something about his preview on the LSE website and the article in a journal. The report refers to an analysis engaging deeply into the challenges and opportunities faced by small and medium-sized enterprises (SMEs) in China’s technology sector during the process of technology commercialization. It covers not only the innovation of the technology itself but also emphasizes the importance of narrative in gaining market acceptance and legitimacy. The paper provides a comprehensive perspective, ranging from theoretical to practical aspects, and from the abstract to the concrete, showcasing how businesses can adjust their narrative strategies amidst changing market demands and technological advancements. I am working on tourism and hospitality issues, but the digitalization era makes it all the relevant. SMEs are no more standalone islands, but they are contextualized and interconnect in subtle ways. I will be happy to see more of his work in the public domain and respectable media like that of the LSE’s.
Appreciation and Gratitude!
Let me offer my gratitude to those who wrote something about my blog based on a paper I had published on ICT firms challenges and opportunities in the ever change nature of politics, industries and technology. Today, I start with Professor Ingu Oh at Sookmyung Women’s University, Seoul, Korea. We met at a special issue workshop on the Korean Wave, related to a fusion of K-pop and ICT, organised by Ehwa and APBR. I thank him again for taking a brave step in writing the first comment, and then many others followed, and I hope they will continue to follow as will he! Tariq
Good advertising skills are crucial for tech companies, and this article highlights a key aspect of that – storytelling. The article’s emphasis on the interplay between abstract and concrete narratives offers a fresh perspective on technology commercialization, potentially revolutionizing how SMEs approach market communication. However, it may oversimplify the complex dynamics of the tech industry by placing too much weight on narrative strategy alone, potentially overlooking other crucial factors like product quality, market timing, and competitive landscape
In China’s ICT sector, SMEs face a range of challenges that contribute to their failure, with capital flow and cash management being among the most critical. Many SMEs fail to effectively manage their financial resources, resulting in liquidity problems that hinder their growth. Additionally, a lack of strategic foresight leads to a failure to learn from the experiences of others. Instead of leveraging lessons from decades of global industry development, these firms often fall into the trap of reinventing the wheel. Without incorporating valuable insights into their business strategies, they frequently overlook important factors such as market research, missing opportunities to align with consumer needs and industry trends.
Another key issue stems from the way firms approach teamwork and organizational culture. While Chinese culture emphasizes structure and clear roles, many ICT SMEs attempt to create abstract work environments, bringing together teams with diverse backgrounds but lacking proper coordination mechanisms. This leads to inefficiencies and conflicts, as these firms struggle to balance innovation with effective communication. Without clear structures in place, the differences in team dynamics and expectations often slow down progress, preventing SMEs from scaling successfully or maintaining competitiveness in a fast-evolving sector.
A potential PHD student, appreciate Tariq, our friend and teacher, we work together in a coffee shop, and is an honour to get the chance to write papers with him. I will come back to more comments when I make some progress…
“perceptual wisdom” is a very interesting concept, and reminds me of Xiaomi’s corporate culture of being friends with its users. Xiaomi’s electric car, the Xiaomi SU7, was a big hit with consumers this year, perhaps in part because of the company’s strong emphasis on “perceptual wisdom”
This is an interesting and engaging article. While Chinese firms have manifested themselves in the economic domain, we still know little about how different narrative strategies may have been evolved amidst changing market demands and technological advancements. Tariq’s work provides a promising avenue for exploring this issue. Congrats!
I am proud to see my professor, Tariq H. Malik, who taught my MBA about 10 years ago has appeared on the LSE website! Appreciation and gratitude! I learnt the importance of narratives.
Since I start my own business in 2013，the journey from inception to commercialisation is laden with challenges and opportunities, as owner of a Chinese tech SME, I been inspired by Professor’s perspective, perceptual wisdom is not just a theoretical construct but a practical tool that SMEs can leverage to align their technological narratives with the perceptual realities of their target audience. By doing so, we can navigate the complex web of market expectations, regulatory landscapes, and competitive pressures.
This is a very thoughtful article. Professor Tariq is adept at combining theoretical innovation with management practice. I agree that smaller firms need to be agile and ready to shift their narratives from abstract to concrete, or vice versa, depending on the changing tides of market demand and technological advancements in the hypercompetitive world. Congratulations on your insightful argument!
In Tariq H. Malik’s article on the LSE Business Review, he highlights that while narratives can play a role in shaping perceptions and attracting initial interest, they are not a substitute for the structural and strategic foundations necessary for SMEs’ success in China. Malik argues that factors such as innovation, resource management, and institutional alignment are crucial for sustainable growth. Therefore, while a compelling narrative can help SMEs create an identity and differentiate themselves in a crowded market, it must be accompanied by tangible business strategies and capabilities, aligning with Malik’s view that long-term success is driven by more than just storytelling.
In China, narratives play a unique and powerful role in shaping business success due to the cultural and social dynamics that influence consumer behavior and corporate identity. Chinese consumers value stories that resonate with cultural heritage, collective values, and the evolving aspirations of society. A compelling narrative in China often intertwines traditional elements with modern aspirations, creating a sense of connection and trust with the audience.
For businesses, especially SMEs, crafting a narrative that aligns with the societal context can be a significant advantage. Narratives that emphasize harmony, community, and the pursuit of collective well-being tend to resonate well, reflecting deep-rooted cultural principles like Confucianism. Moreover, in an era where digital media and social networks dominate, narratives become even more crucial. They help companies differentiate themselves in a highly competitive market, where consumers are increasingly looking for brands that share their values and tell engaging, authentic stories.
However, while narratives are influential, they must be backed by genuine actions and quality offerings. In China, where the consumer market is both vast and discerning, a narrative that fails to deliver on its promises can lead to rapid distrust and damage a brand’s reputation. Therefore, successful narratives in China are those that are not just compelling in their storytelling but are also integrated with the company’s practices, values, and commitment to delivering real value to customers. This blend of storytelling and authenticity is key to building long-lasting relationships with consumers in the Chinese market.
“Professor Tariq Malik’s insightful piece on the narrative strategies of Chinese tech SMEs offers a profound understanding of how storytelling can be leveraged for commercial success. It’s a testament to the idea that in the technology sector, ‘it’s not just about the technology, but how it’s communicated.’ The balance between abstract and concrete narratives is particularly intriguing from a marketing perspective, as it highlights the need for a dynamic communication strategy that resonates with the target audience’s perceptual level.
This study invites us to consider the broader implications of narrative in the global technology market. How do cultural and regulatory factors influence the crafting of these narratives? And how can SMEs worldwide adopt similar strategies to enhance their market positioning? As we stand on the brink of an ever-evolving digital landscape, the narrative’s role in shaping a firm’s growth-oriented performance becomes increasingly significant, urging further research into this fascinating intersection of technology, communication, and perception.”
As the top leader of this institution, I first met Professor Tariq H. Malik in 2017 when he came to LNU to deliver a lecture to our postgraduate students and junior teachers. After the lecture, was introduced to me in the Admin Building. Within a few seconds in our brief meeting, we found our chemistry compatible, and I approved the HR director for preparing the relevant documents. In that brief meeting, I said, “Shenyang is cold in winter, and it does not have the seaside location that Dalian has, you’ll find meaningful aspects of life at LNU in the capital of the Northeast.” Since then, he has contributed to our institution like no one else has. Tariq took on challenging commitments and fulfilled them, even when the odds were against him. His LSE Business Review blog offers insights from his seniors, peers, and juniors about his work. Featured in China Daily, his research on SMEs is another feather in his scholarly cap.
2. Gratitude: Joy (Ma Yali):
I thank joy, the second brave person to write a comment. She is voice dean of one of the business schools, and currently, she is a visiting scholar in the USA. I met her at the AOM conference, where she added value to my experience of being there. Or else, like almost all the 13000 participants, I was lost in the crowd. I asked her if she would comment on the blog at LSE Business Review site. She happily agreed. I am thankful to her, and we are keenly waiting for her return to solve my issues in the admin office. After our friend, Professor Oh, she is the second most delighted person to make a comment, and then many other friends and colleagues followed. Interestingly, strangers do not comment unless invited to do so. Tariq
I am Faizan Alam, with a PhD from DUFE where Professor T. H. Malik has been working for Surrey University’s Institute in Dalian. Before I came, he had left for LNU. But I have heard a lot about him, changing the research and publication culture at DUFE.
I am interested to follow him because of two reasons. First, I am building a study on his published article where he is trying to explain that understanding Q-proximity versus A-proximity can mitigate the institutional sclerosis facing Chinese Education. I am from India, and I will compare China and India on the Q vs A proximities.
Second, I became interested following his argument about narratives in management effects. Based on the blog published at LSE Business Review, I was about to write about it when received an Award in France on his narrative paper in the sports industry. I was planning to add and post when I read a press release that he got another award at R&D Management Special Issue workshop.
I congratulate him, and I am thankful for him sharing with us his ideas! Faizan Alam, PhD
I am Ma Guangxing from the Innovation and Technology Department of Liaoning University. I am proud to say that I had a philosophical talk with Tariq when we hosted him at a BBQ tent on the riverbank in North Shenyang. My English communication skills are not sharp, but Catherine often helped me get my point across. I am looking forward to engaging with him in another tent BBQ for an in-depth discussion, especially after he received the best paper recognition for his research on the comparative analysis of civil-military technology transfer. I used AI to correct my text.
I am Junguo Shi, an Associate Professor at Jiangsu University, China. I met Professor Malik at Northeast University when he was invited to speak at a conference. Since then, we are in touch, and recently I had the opportunity to invite him for a lecture at our university. I was a visiting scholar at Seoul National University, and he was in the Seoul Schumpeterian conference. It strengthened our academic links. Now I turn to the blog on LSE Business REview.
In an era of rapid technological advancements, Chinese small and medium-sized tech enterprises face a complex landscape filled with significant barriers to entry and entrepreneurial challenges, alongside numerous opportunities. Establishing legitimacy is crucial for these startups to gain the trust of customers, investors, and regulatory bodies. My collaboration with Professor Tariq H. Malik resulted in a paper exploring how Didi Chuxing, a leading ride-hailing company in China, achieved legitimacy in this competitive and regulated market. The study examines the strategic maneuvers, adaptive learning processes, and narrative constructions Didi employed to gain acceptance, offering insights into how tech startups in China can navigate the multifaceted challenges of legitimacy.
Professor Tariq H. Malik, with his extensive research on Chinese innovation practices, provides a deep understanding of how firms in China innovate and adapt to rapidly changing technological and market demands. His insights highlight the intricate interplay between technological advancements, market dynamics, and the socio-political context in which Chinese tech enterprises operate. By understanding Didi Chuxing’s path to legitimacy, we gain a broader perspective on the strategic actions and narratives necessary for success in fast-paced, competitive markets, making this paper an essential reference for those interested in startup growth, market entry strategies, and innovation management in China.
I am so proud that my co-author has appeared in the media such as that of LSE and he has recently gained visibility by getting many awards that he has posted on wechat. I plan to see him soon.
The article highlights how storytelling plays a critical role in the success of Chinese tech firms, particularly by connecting with their audience through compelling narratives. It emphasizes that effective communication, especially when linking technology to users’ experiences, creates a competitive edge. This strategy isn’t just about product development but also shaping perception and trust.
Tariq is my MBA professor at Northeastern University in Shenyang, China. Following his narrative researches in Chinese corporations and SMEs also, I have applied some for my research for issues of FDI corporations affect to Vietnamese economics in background of Chinese corporations made up the highest ratio of total foreign-invested fund.
Besides being a researcher, I’m also an accounting and financial manager in Chinese manufacturing corporations. I am proud that Professor Tariq owns a sharpen view on Chinese innovation practices, understand Chinese culture and how these companies adapt to the market that have brought his researches more valuable and practical.
I believe that my beloved professor will create more and more valuable journals in future and his devotion will become a rich resources as references for young scholars.
n the fiercely competitive world of Chinese ICT firms, Tariq H. Malik highlights the critical role of legitimization through storytelling. For small and medium enterprises (SMEs), survival is not just about technological innovation but about crafting the right narrative—one that aligns their advancements with societal expectations and market demand. Malik argues that firms must be agile, shifting between abstract and concrete narratives as needed to stay relevant. By balancing visionary, long-term messages with more tangible, immediate claims, SMEs can avoid the twin pitfalls of inaction and misguided responses. The study, which draws from a vast pool of evidence across 500 cities in China, underscores the importance of narrative in driving firm performance, particularly through metrics like “return on employees.” In this environment, SMEs must constantly refine their narratives to remain competitive as technology and market conditions evolve.
Criticism:
Though Malik’s study provides a compelling look at the power of narratives, it places too much weight on the abstract versus concrete distinction, potentially oversimplifying the realities of technological commercialization. The focus on rhetorical agility overlooks other vital factors like strategic planning, financial resilience, and the importance of innovation ecosystems. While the argument about narrative flexibility is insightful, the broader challenges faced by SMEs, such as navigating global competition or adapting to shifting regulatory environments, receive little attention. Additionally, the study’s reliance on China’s specific market dynamics raises questions about its applicability to SMEs operating in different cultural or economic contexts. By focusing so heavily on storytelling, Malik risks underplaying the complex, multifaceted nature of business success in the high-tech sector.
In the hyper-competitive world of Chinese ICT firms, Tariq H. Malik emphasizes the importance of legitimization through storytelling for small and medium enterprises (SMEs). He argues that survival in such a dynamic market requires agility, not just in technology but also in how firms frame their innovations. By shifting between abstract and concrete narratives, depending on market conditions and societal expectations, SMEs can position themselves for success. Malik’s study, drawing on evidence from 500 cities across China, highlights how aligning the right narrative with technological advancements can lead to improved performance metrics like the “return on employees.” The study suggests that a well-crafted narrative can help firms avoid the common mistakes of inaction or missteps in responding to the market, offering a pathway for sustained growth.
Criticism (from a Japanese perspective):
From a Japanese business perspective, which places a high value on long-term planning, consensus-building, and gradual improvement (kaizen), Tariq H. Malik’s focus on narrative agility may seem overly reactive. While the idea of shifting between abstract and concrete narratives is insightful, it risks encouraging a short-term, opportunistic approach that might undermine the deeper, trust-based relationships critical in Japan. In contrast to China’s rapidly changing business environment, Japan’s market dynamics often prioritize stability, reputation, and incremental growth. Moreover, the study’s focus on rhetorical flexibility overlooks the importance of harmony (wa) and collective decision-making, which are deeply embedded in Japanese corporate culture. Malik’s framework may thus resonate more with highly competitive, fast-moving markets but feels misaligned with the slower, consensus-driven pace of Japanese firms, where the narrative is more about long-term dedication than rapid shifts in messaging.
In Japanese high-tech firms, narratives are often conceived as more than mere storytelling; they represent a critical tool for conveying long-term visions, fostering innovation, and maintaining harmonious relationships among stakeholders. This understanding of narrative is deeply embedded in the collective culture of Japan, where business success is often seen as a product of shared values and incremental growth. The narrative often emphasizes collective harmony, continuous improvement (kaizen), and a deep respect for the technological craftsmanship (monozukuri), blending traditional Japanese values with modern technological advancement.
In high-technology businesses, narratives are used to balance the tension between global market pressures and the preservation of local identity and practices. This narrative framework helps foster innovation by integrating external knowledge with internal capabilities while ensuring that technological advancements align with broader societal and corporate objectives. High-tech firms in Japan often focus on communicating a narrative that reflects long-term sustainability, incremental innovation, and societal contribution, rather than the rapid disruption often emphasized in Western tech firms.
Relating this to the article by Tariq H. Malik in the LSE Business Review, the piece likely discusses how narratives in high-technology firms can be strategically deployed to shape business outcomes, particularly through technology disclosure practices. Malik’s insights could emphasize how Japanese firms use narrative to navigate the complexities of innovation, global competition, and domestic policy pressures. His article may also draw comparisons to other contexts, highlighting the distinctiveness of the Japanese approach to narrative in tech firms, particularly in contrast to American or Chinese firms.
I met Tariq in Tsinghua at a conference some 12 years ago. He was at Surrey University Institute in Dalian, and I did not know he is still in China until now. Someone pointed out that he also was at a recent SI workshop in Wuhan.
Here are three critiques of Tariq H. Malik’s article in the LSE Business Review, addressing the key themes of narratives, the role of the arts, and the interplay between arts and sciences in the context of Chinese high-tech SMEs:
Overemphasis on Narratives and Legitimization: While Malik provides compelling insights into the role of narratives in shaping the success of small and medium enterprises (SMEs) in China’s technology sector, he arguably places too much emphasis on legitimization through rhetoric. While it is true that storytelling can influence market perception and contribute to a firm’s success, this focus may undermine the material and technological advances that drive firm performance. Malik seems to suggest that the right narrative alone can enhance credibility and bridge gaps between technology and market demands. However, in hypercompetitive environments like China’s, technology’s practical value and tangible innovation likely outweigh mere rhetorical framing. A stronger focus on how technological capability directly correlates with commercial success would provide a more balanced view.
Undermining the Role of Science and Technology: Malik challenges the conventional wisdom that science and technology are the primary drivers of progress by placing arts and narratives at the forefront. He chides the exclusive role of science in innovation and implicitly argues that the arts may even precede scientific development. While this perspective is intellectually stimulating, it risks downplaying the transformative power of science in technological innovation. Scientific advancements provide the foundation upon which most high-tech firms are built, especially in China’s ICT sector, where breakthroughs in artificial intelligence, telecommunications, and hardware development have shaped the global economy. While narratives might elevate and sustain technology’s success, the article would benefit from a more nuanced acknowledgment of the indispensable role that rigorous scientific research plays in high-tech commercialization.
The Abstract-to-Concrete Narrative Framework Needs Further Exploration: Malik’s argument about the need for firms to shift between abstract and concrete narratives depending on market conditions is intriguing but underdeveloped. His discussion of how perceptual wisdom aligns abstract narratives with long-term goals and concrete narratives with short-term performance is valuable but lacks specificity on how firms can operationalize this in practice. For example, how can SMEs effectively balance visionary rhetoric with the immediate realities of technological application in different stages of growth? Additionally, Malik’s framework might oversimplify the complex nature of strategic communication, as abstract and concrete narratives are often intertwined and not easily separated. A more detailed exploration of how Chinese SMEs can transition between these narrative styles in response to real-world challenges would strengthen the practical relevance of this theoretical model.
My name is Shawn, and I was Professor T. H. Malik’s student in one of the PhD courses. Now I am a Postdoctoral scholar. I was asked to read and comment on it it, and here is my short view on it after reading carefully this article and other works of his. Since I have known professor Malik since 2018, I am comfortable to write a short passage.
Professor Tariq’s discussion is quite brilliant. This is my conclusion after reading his article in detail. China’s economy is undergoing transformation. The production model left over from the traditional planned economy is biased towards production, while now, the production model is more inclined towards market recognition, which means higher market valuation and more relaxed industry entry barriers. In reality, “business roadshows” have become a platform for companies to show investment institutions. They will show how huge the company’s potential growth and profits are, which have a great impact on the growth of small and medium-sized enterprises. Anyone who reads Professor Tariq’s article will have some academic inspiration and the idea of commenting on the reality.
The passage provides a compelling narrative on the critical role of storytelling in the survival and success of SMEs in China’s tech industry. It underscores the importance of aligning technological advancements with market demands and societal expectations through the right rhetoric. The study’s findings are particularly insightful, highlighting how the balance between abstract and concrete narratives can significantly impact a firm’s performance. It’s a powerful reminder that in the digital age, the ability to communicate effectively is as vital as the technology itself. Personally, I find the concept of perceptual wisdom particularly intriguing—it suggests that understanding and leveraging the audience’s perception is a skill that can be honed to drive business success. This aligns with my belief that empathy and understanding are key to effective communication and, by extension, to business strategy.
I did my PhD at Imperial College, London, and it was then I happened to meet Tariq in 2008 and then we briefly interacted at the AOM at Orlando, Florida in 2014. Based on my critical view and somewhat limited knowledge, I offer several comments below:
1. The study appears to be most relevant to the marketing communication literature.
2. I think the right narrative abstractness can significantly enhance the SME’s appropriateness and desirability (coupled with a need) in the eyes of the audience, but not necessarily its credibility. Credibility is a psychological affair, and usually goes along with backed up evidence. This is an assessment point that differentiates a seasoned businessman from a novice entrepreneur.
3. You could have sold your paper without stressing on legitimization and credibility. The statement that, for a technology, the right narrative abstractness resonates (or should synchronize) with perceptual level of the audience, or reasoning with the audience at the right perceptual level, is good enough. To me legitimization and credibility are big concepts and probably are at “too high level of abstraction” for this work. Mentioning them in the passing would have been enough.
4. I think the real practical relevance of this study is the “beyond survival”, i.e. growth performance. This means exploring and enhancing breadth of the potential opportunity landscape. Too abstract narrative should be evaluated for implementation feasibility in specific circumstances and cases.
5. Empirics: Your findings indicate that concrete narrative enhances the link between technology and performance. While this is expected, the real value of your work (and data) lies in explaining the moderating effects of abstract narratives. I understand that it is not easy to analyse this aspect with your existing data, but perhaps you could have tried to gather other related qualitative data to put forward some unexplored relationships.
6. Is a firm’s performance a proxy for perceptual alignment between narrator and audience in your study?
7. Differentiation of visionary broad-scoped technologies from specific detail-oriented technologies. I wonder how you had operationalized this definitional aspect, as it might be context dependent. Multiple levels of abstractness might be valid (for multiple applications) for the same technology.
8. Humans (the narrator and the audience) can have a natural tendency to operate at a certain level of abstractness. Some are naturally detail-oriented (like myself), while others may be naturally abstract-oriented. Coordination of human perceptions at the right level should be accounted for in a narrative story.
9. It is difficult for me to comprehend an exclusive causal (direct & strong) link between business narrative and “return on employees”. Per my understanding of the term, “return on employees” (or employee-employer relationship) is a byproduct of many “right” things a firm does and makes it prosperous, narrative being one of them.
10. When growth, performance and social values are intertwined, then abstractness must include the social dimension, apart from the technological and economic dimensions, if the society demands it.
Overall, I think the broader topic you have in hand (commercialization narratives for emerging tech) is relevant and important for these times, and it can be dug a little deep to understand and generate a prescriptive theory for narratives along multiple dimensions, including abstractness.
Follow-on topics to explore:
1. Manifestation of narrative abstractness through the digital medium (for digital marketing).
2. Narrative for growth performance ‘vs’ narrative exclusive to establishing credibility (legitimization). In a socially conscious society, “return on employees” can be a link between firm’s legitimization efforts (that are not necessarily linked to narrative abstractness) and audience positive response.
3. Narrative for digital (emerging) tech space ‘vs’ narrative for established or matured tech.
Kuen Lee, at Seoul National University, has raised an implicit but interesting question: what is the proof or support for your claims in this essay? He writes: “Better to understand if there are some examples of the arguments.” The comment is short, and the implication is long. I add some points to answer those implicit questions.
1) Economies are driven by narratives. While sociologists and economists in sociology have long known and claimed in support of this point, recently, Shiller, the noble laureate has written a book on narrative economies.
2) We know that some inefficient technologies get diffused, and efficient technologies vanish from the industrial scene. It happens sometimes.
3) It is these narratives that make some technologies compatible with social culture, religious contexts, and even health related phenomena.
4) A Chinese contract is often 2.5 pages long; an American contract is about 25 pages long. The former is abstract, the latter is concrete.
5) My own article in Chinese Management Studies (2019), claims that American legislators are 80% lawyers and 20% engineers or so. In contrast, Chinese legislators are 80% engineers and 20% others (arts and social sciences). One can guess what it means.
6) If one looks at policies of companies, those that say what to do are often abstract. But those that explain how to do it, they are often concrete.
7) The concrete narrative of an entrepreneur tells the investors: this is how it increases your value (economic, social or psychological). The abstract entrepreneur tells investors: this technology will change the world.
8) CEOs, top leaders and politicians often rely on abstract narratives because they can align with the good feelings of the audience. However, they subtly relate to the context (concrete) of those audience. But scientists will always be concrete. Therefore, they can never commercialize themselves to be the top leader of a company. It is very rare for concrete functions to rise up to the top of an organization.
10) I have been working on this issue of concrete versus abstract communication, but no journal wanted to publish it. Then came articles in AMJ in the USA. Now I can cite them. Once again, it is not technology or knowledge, but it is the legitimacy of the background.
The list goes on, but not many people have the time to read it. Therefore, I close it with pleasure that I found a question to answer. I will do so more in the future.
I am a graduate at Dongbei University of Finance and Economics, and my teacher Professor Yang introduced me to Professor Tariq H. Malik, and we are very thankful to him for his time and detailed explained on the potential development of our papers for journals in our field. Along with another classmate of mine in postgraduate studies, three of us meet (my teacher, and two of us–students) at a coffee talk in Dalian. We are working on the antecedents and consequences of smart cities in relation to digitalization. We were surprised to have his flexible ideas at different levels. We were just expecting a ritualistic input that we usually get, but this time it surprised us. While we could not attend his seminar yesterday where he was invited to deliver a lecture on the ICT survival differences in China, we got the privilege to get connected with him through our teacher. We have to have a chance to talk to him again.
My name is Zheng Yan, and met Professor Tariq H. Malik in 2018 when I saw him tryong to explain something in English but people in front of him did not understand. Recently, I saw his essay about narratives, and it attracted me write something for three reasons.
First, I have written a fiction, and narrative has been in passion, depite my postgraduation is in physics. Second, I have started making organic soap by using coffee gregs, an experiment that may or may not be successful but I believe it will need a narrative. Third, I am passionate about narrative after seeing the documentary by Fan Li on Lisbon Maru, ship drowned by American torpedo, killing 1100 out of 1800 on board. They were prisoners of war by Japanese. Dongji fishermen try to save as many as they could by their small fishing boats.
Fang Li when all the way to the UK, Canada, the USA and Japan. He found one surviver in the UK and one in Canada, both of whome died during covid times. The narrative is so strong that it can bring one into tears. It is the narrative of the letters; the narrative of love between husbands lost at the sea and wives waiting in the other part of the world; and it is narrative of the daughter who never saw her father but her mother kept her promising he will come and she would wait at the train station.
I am sure the narrative of aestehtics, of functions, of prestige and of passions work the same way that narratives of emotions.
ZY
I met Professor Malik two years ago when he conducted a three-hour seminar for PhD students on innovation studies. Despite my limited English-speaking capability, I was able to follow his arguments, and that’s how we clicked, quickly becoming more friends than teacher and student. It was a wonderful experience to interact with him, and sometimes even amusing due to our cultural differences—something I said might look silly to him and vice versa. He let me use his office for a year or so.
One thing I learned from him that remains unforgettable is that “research needs stories.” Every time I asked him what could be important, his reply was simply, “story.” Over time, he even began learning how to say it in Chinese. It became our catchphrase: “Gushi = 故事 = story.” Sometimes, he would emphasize this with, “大新闻, big story,” as a way to encourage me to develop my narratives further. This phrase not only motivated me but also added an element of fun to our academic discussions, reminding me of the power of storytelling in research.
I am Dr. Mushtaq Bakhshi, a former consultant cardiologist at King Faisal Specialist Hospital & Research Centre. During my secondment to the royal palaces, I served as the director (top position in the entity) of a royal medical organization in the 1990s. At that time, Tariq had become the focal figure in the digitalization of medical records after completing his first degree. He was the sole employee and manager of the computerized record room. I was almost his only support for this innovation, as most of our colleagues preferred manual methods over computerization and the automation of certain activities.
Once, we devised a plan to leave the computers in the ultimate boss in the previous evening to be seen the next morning, hoping he would eventually start using them. Indeed, he did, and he liked it so much that he bought expensive laptops for his sons and daughter. We also worked on digitalizing medical records in a way that allowed visualization of handwritten notes and drawings by physicians.
Tariq was not a professional programmer, but he was an enthusiastic learner by passion. It was this passion that took him to many countries and shaped him into the person he is today. I know he excelled at narratives, and even when he translated between patients and British doctors and dentists, he made a difference and built friendships on both sides. Some patients would even call him “doctor” despite him not being one.
It has been 30 years, and we have not met again since he left and never returned to the region.
This is my key theme all the time-narrative strategy in the process of technology commercialization. This is not only very important for SMEs, but also the focus of the whole technology industry. The author not only provides a theoretical framework, such as the theory of construction level, but also combines empirical research, which increases the persuasiveness and practical value of the article. The article not only provides guidance for enterprises, but also provides insights for policy makers, emphasizing the importance of balancing the ICT industry.
I met with professor at the high-speed train yesterday and we talked a lot. We talked about the universties, a the English accents and so on. That`s was my first time knowing that someone in the UK say ” ugly” like “wugly”, before that I only know that there are two accents in the world hahaha.
I am a student now studying Russian. For me I think language is the most useful “tool” to learn about a new country. Last year, I had an opportunity to be an exchange student at Moscow. It was my first time to be abroad. Everything in Russia were very novel and interesting to me. At the very beginning, I couldn`t speak Russian so fluently, so that I didn`t have many Russian friends there, but I didn`t think my life will always like that. I started to join in the Chinese Learning Club, there were many Russian students, who were studying Chinese. In the club, I met with lost of interesting people and we all became friends. Thanks to them, I practised my Russian better and learned more about Russia. I had a very nice time in Russia.
In the future, I wish I could get more “tools” to learn more country in the world.
I really appreciate this research. It has very insightful findings. Professor Malik’s research always has strong industry implication and can highly benefit the industry development.
I am Linxy, a postgraduate student at Dalian University of Languages and Foreign Studies in Liaoning Province. I met Professor Tariq H. Malik on the high-speed train from Dalian to Shenyang yesterday. Our conversation started once he found out I could speak English comfortably, and we ended up talking for hours. We discussed everything from education to universities, narratives, China, and international issues. One of the funniest moments was when we talked about English accents. He mentioned the British pronunciation of “water” as “wa’er,” and to my surprise, he also shared how some say “ugly” as “wugly.” Before this conversation, I thought there were only two English accents in the world—what a revelation!
Currently, I’m a student learning Russian. To me, language is the most valuable “tool” to explore a new country and culture. Last year, I had the incredible opportunity to be an exchange student in Moscow, my first time living abroad. Russia was filled with new and interesting experiences, but at the start, my Russian wasn’t fluent enough to make many friends. I didn’t let that hold me back, though. I joined the Chinese Learning Club, where many Russian students were learning Chinese. In that club, I met many fascinating people who soon became my friends. Thanks to them, I improved my Russian and learned so much more about Russian culture. My time in Russia was truly wonderful.
Professor Malik also explained the concept of narratives to me and told me about his blog at the London School of Economics. Curious, I looked it up afterward, and it inspired me to write something of my own. It felt good to reflect on myself and my experiences. In the future, I hope to find more “tools” like language to explore and learn about even more countries.
Interesting and informative.
As a bank loan officer, I often meet with people from high-tech SMEs. When I first meet them, their narrative and behavior have a big impact on my decision（loan or not） . If they are too grandiose and enthusiastic(call me brother, hug, first in the world, show educational background, the history of meeting big shot, etc.), I will be suspicious of their company. I’m going to ask them for more collateral or I’m not going to work with them. In the bank, we have too many painful experiences with the bad assets.
My name is Zi Jiang, and I work at the International Business College of Dongbei University of Finance & Economics. Last week, our school had the honor of hosting Professor Tariq H. Malik for a lecture on the differences in the life spans of Small and Medium Enterprises (SMEs) in China, particularly in the ICT (semiconductor) industry. It was during this event, where I was involved as an admin executive, that I first met Professor Malik. Interestingly, he insisted I call him “Tariq,” which set an informal tone for our conversation. I also discovered that he had previously been a professor at our university before my time here, as I joined after completing my postgraduate studies at Maritime University. During our discussion, I learned that he has written about SME narratives for the London School of Economics’ Business Review, which piqued my interest in his work.
Initially, I was skeptical about the importance of narratives because, in my field, science has always been the priority. The idea that narratives could play a role in business success was unfamiliar to me. However, after Tariq encouraged me to leave a comment, I decided to read the preview of his article on the LSE website. As a science student, I had never considered this perspective, but the brief read made me realize that if I ever plan to start a company, I must first find a “blue ocean”—a new market space without competition. The Chinese market’s homogenization is intense, so finding a unique track and branding oneself or the company is crucial. In my case, Chinese Internet media is extremely popular, and if I became a vlogger, I could brand myself as a “post-2000 college teacher,” sharing daily insights about the work life of university administrators and how to secure such positions. Additionally, as a star-struck fan in my spare time, I think sharing stories around this interest could also attract viewers. There are many successful vloggers of this type in China today.
I am a current PhD student at Northeastern University, and my supervisor had invited Prof. Tariq to give a presentation to us. Information technology brings great opportunities for the development of SMEs, but gaining legitimacy is also a great challenge they need to face. The current market environment in China provides a good case sample for such issues. The Storytelling mentioned in this study provide a new perspective for thinking about the relationship between technological progress and performance. I think it is a very interesting study. I think using case studies is also a good direction for this issue in the future.
The blog “Storytelling Makes the Difference Between Success and Failure for Chinese Tech Firms” provides a compelling view of how narrative plays a key role in the success of firms within China. However, from a Malaysian university professor’s perspective, the approach to storytelling requires a more culturally nuanced lens. In Malaysia, storytelling in business is complicated by a multicultural environment comprising Malay, Chinese, and Indian influences. Unlike China’s relatively homogenous cultural setting, Malaysian firms must craft narratives that resonate with diverse communities, incorporating different cultural values and beliefs to effectively communicate with a broad consumer base.
Moreover, the blog emphasizes the alignment of Chinese tech firms with government policies as a vital component of their storytelling strategies. While this is relevant in the Malaysian context, where government influence is significant, the nature of this relationship differs. Malaysian tech firms align their narratives not only with national policies, such as the Malaysia Digital Economy Blueprint, but also with regional market dynamics within a more decentralized political framework. This requires a more flexible storytelling strategy that balances government priorities with regional diversity, an aspect not thoroughly addressed in the blog.
The blog also could benefit from a stronger theoretical and empirical foundation. Malaysian academics, who place a high value on theoretical grounding and cross-contextual research, might argue that the article lacks robust scholarly frameworks and comparative evidence. Incorporating theories from strategic communication, organizational behavior, and empirical studies comparing storytelling across different Asian economies would provide a more comprehensive view. For example, exploring narrative practices in Malaysian, Singaporean, and Indonesian firms could help assess the transferability of the storytelling principles discussed in the blog to other contexts.
Lastly, the practical implications outlined in the blog seem tailored to China’s unique market dynamics and regulatory environment. Malaysian firms face different challenges, including navigating a diverse consumer market and increasing regional competition. To be more relevant to a Malaysian audience, the article could have provided strategies for adapting storytelling to Malaysia’s specific business context. Addressing how Malaysian firms could leverage their multicultural narratives for regional or international expansion would give the blog broader applicability and practical value for academics and practitioners in Southeast Asia.
I am A. Gaff, and I have been enjoying the company of Tariq, whom I have known since the mid-1990s when he was at Manchester and later at London University. I have also been taking care of his house in the UK. On the way back from Chicago, he stayed with us in Leeds before visiting Reims and then going on to Singapore. I have been an entrepreneur, a social worker, and a politician at the city level. While I am not an academic, I have had the opportunity to travel with Tariq to different universities and cities. I have been with him to Edinburgh, Manchester, Leeds, Oxford, Cambridge, London, Reading, Kent, Rome, Seoul, Japan, Malaysia, and Singapore. I have met his academic colleagues, friends, and students. Once, he wrote a fiction book called Espionage of Mind and Machines, and today, mind and machines are becoming a real thing. His articles are not accessible to me because of our different levels of intellectual training, but the previous publication of his makes sense to me. Here is an example: We have been running a family business in West Yorkshire for 30 years, and every time a customer posts a note on social media, it makes a difference. We had to watch every post and reflect on it. Sometimes the focus was on the product, and other times it was on communication-related issues—thus, narratives. The best example of rhetorical narratives in my view in recent times is George Galloway, whom I listen to every time he is on air.
I am Khalifa Ahsina, a professor at Ibn Zohr University in Agadir, Morocco. I am the editor in Chief of African Management Review, and we aim to make the African approach to management issues a developed idea in the near future. We cater for those scholars interested in the African continent for its inward and outward business interactions. I have known Professor Tariq H. Malik for sometime as we got connected through social media. Especially he is proud to be called ‘Tariq of Giberalor’, the Moor whose name represent the mountain, we have some connection in this context. Hopefully, we will see face to face each other at some event in the near future. After discovering the essay on LSE’s Business Review site, I decide to make a comment from the Moroccan perspective and use historical context to show how narratives work.
Narratives play a critical role in business commercialization, serving as a tool to communicate an idea’s value, build brand identity, and establish trust with consumers. In the context of commercialization, narratives provide a story around the idea or service that resonates with the target audience, going beyond mere features and technical specifications. For example, a Moroccan high-tech firm seeking to commercialize a new software idea may craft a narrative that not only highlights its technological capabilities but also how it empowers local businesses to thrive in a digitally evolving economy. This story transforms the idea from a simple concept into a symbol of progress, aligning with cultural and social aspirations, thereby making it more appealing and relatable to the target market.
A historical example that embodies the power of narrative is that of Tariq Ibn Ziyad, the Berber commander who led the conquest of Spain in the early 8th century. Upon arriving at Gibraltar, Tariq famously ordered his soldiers to burn their ships, delivering a speech that emphasized their point of no return and their need to fight for victory as there was no option to retreat. Today, that mountain in the meditrean is called ‘Tariq’s mountain = Gibal al Tariq’. His narrative framed their (the audience, soldiers) mission as one of destiny, courage, and glory, effectively uniting his troops with a shared purpose and instilling the determination to succeed. In a modern business context, companies use a similar approach to forge compelling narratives. A startup might use the “burn the ships” metaphor to rally its team and customers around the idea that adopting their new technology is a decisive, forward-looking choice, leaving behind outdated practices to embrace innovation and progress.
Furthermore, narratives help businesses navigate market entry by framing the idea in a way that addresses specific market needs and cultural nuances. In North African markets, where consumers often value heritage and social connections, companies leverage narratives to showcase how their ideas align with these values. North’s study of institutions is contextualised in Morocco’s bazars. Today, a start-up in Morocco, for instance, might build its commercialization narrative around themes of community support, sustainability, and traditional craftsmanship, particularly when marketing ideas related to fashion, agriculture, or artisan goods. Like Tariq’s call for unity and resolve, these narratives resonate deeply with local values, distinguishing the idea in a crowded market and positioning the company as culturally sensitive and locally grounded, building a foundation for customer loyalty and brand advocacy.
It was 2013 when I became a foreign student from Turkey in China. It was our postgraduate days, and everyone had some understanding that communication was the essence. Unfortunately, not many people practice it because of pressure for technical merits. But I do know and enjoy observing the differences of my exposure to China. No there are not many students there from Turkey, and it was a different story in 2013.
My name is Wu Hengqin (Henry). During 2013 and 2014, Professor Malik, whom we called ‘Tariq’, was informal in interaction with students and faculty. At one time, our school appointed him as a secondary PhD supervisor at the Harbin Institute of Technology (HIT). We had several meetings with Tariq during this period, where he conducted seminars on technology development, particularly focusing on clinical trial projects in the project management department. At one stage, we were in a car when a Chinese song ‘Gen Bei Peng you’ played, and he got visibility emotional making a story of it. After a decade-long gap, we recently reconnected through WeChat.
Since completing my PhD and other formalities, I have been working as an academic in Zhejiang Province. When it comes to narrative, both in general and specifically in project management, an effective narrative is crucial. Every project has stages, each marked by milestones. A coherent narrative alignment serves two key purposes: before the project starts, it helps to reduce uncertainty, and once the project is underway, it legitimizes milestone achievements (deliverables). Tariq emphasized this during the clinical trial seminar and has since published one or two articles on project management evaluation, focusing on both the pre-start phase and the transitions between project stages.
The following three studies, among others, explore the intersection of projects and narratives:
DOI: 10.1080/00208825.2024.2370610
DOI: 10.1016/j.techfore.2024.123676
DOI: 10.1007/s12144-023-04901-w
Given my background in project management, I would be excited to collaborate with Tariq if an opportunity arises. I was introduced to this blog and got old memories back.
Today I deal with Colin Chen’s comment, which is very short but one of the earliest observers. I have known Colin since 2011, and since then I have been interacting with him. Twice, he had invited me to conduct seminars at his universities in different countries. I recently met him, albeit briefly, at a conference where both of us were invited as keynote speakers. I was excited and happy that Colin still admires my style of narratives in simplifying things. His keynote was after me, and as he found I had three questions for the audience, especially on communication, he followed with verbal talk and three questions, ignoring formal PPTs. It means he is a quick learner and highly adaptive, even though he is a trained mathematician and has written on nuclear technology. I am impressed that he conducts orchestra and trains for free to small places as his philanthropy. Neverthless, I noticed that he has been a bit too short in his comments on the narratives. Once he translated my poem when I invited him to Dalian, in China some 10 years ago. So, he should be able to say more than what he said about narratives.
The first time I met Professor Tariq was about 10 years ago at DUFE, a place from where I learned how to see the world with an open mind. Tariq is a warm hearted man, a good mentor, a wisdom person and a good friend who helps me and teaches me a lot. 10 years past, I have got my first post graduate degree from Beijing Jiaotong University and the second one from the University of Cincinnati, changed the job from a state-owned finace company to a private firm aiming at providing good car selling and repairng services to customers. It’s really interesting to read Tariq’s article，he is good at finding the rules or principles of thinks and combining them with his unique perspectives and points. From my perspective, storytelling is essential for all the firms, just like we have done a good job and we need to let people know; we have good products, perfect service, advanced technology, we not only need to let customers know, giving them the chance to get one more option，but also shall give all the other stakeholders more information to make a good decision. Good understanding of the business from the market makes a more successful enterprise.
Very interesting topic I enjoyed reading it.
Thank you
I recently read your insightful article on the role of narratives in SME growth on the LSE Business Review, which I found to be thought-provoking. As an emeritus professor of Accounting in Japan, I have spent decades studying how accounting systems can be used to predict the success or failure of small and medium-sized enterprises (SMEs). I developed the SAF2002 model, a bankruptcy prediction tool that has been widely recognized and used for a variety of applications, from corporate ratings to credit line management for businesses. My interest in your article comes from my ongoing exploration of how narratives and accounting models can intersect to support SME success.
In Japan, the meaning and source of narratives indeed vary across different cultural and historical contexts. Japanese SMEs have a unique way of aligning their narratives to legitimize their operations, much like larger firms. This has contributed to the resilience of our SMEs, evidenced by the record-low failure rate despite the challenges brought on by the COVID-19 pandemic. A notable example is YKK, a non-public Japanese company that achieved global success through its products and technology. YKK’s achievements illustrate that while narratives alone do not determine success, they significantly complement technological advancement.
My work in this field continues even now, as I teach a license course for Small and Medium Enterprise Management Consultants. The SAF2002 model that I developed has been instrumental in this journey. While it is primarily known for its ability to predict bankruptcy, its use has expanded beyond this scope. It serves as a tool for analyzing the financial health of companies, thus aiding both SMEs and larger corporations in managing credit lines effectively.
In your article, you alluded to the role of narratives in SME growth. I believe that both narratives and accounting models are critical components that, when used effectively, create a solid foundation for SME success. My SAF2002 model has contributed to this foundation by offering a concrete way to assess a company’s financial position. It is perhaps this holistic approach that has led to my appointment as an outside board member for several large public companies.
On a side note, I would like to clarify that the development of the SAF2002 model had no relation to my assignment as the Council Chairman of the Road Tax Rating Council of the Tokyo Regional Taxation Bureau. The model’s influence and application have been primarily focused on the corporate sphere and SME management.
Your discussion on narratives provides a valuable perspective, and I appreciate the opportunity to engage in this dialogue. Understanding the diverse narratives at play in different cultural contexts, such as Japan, helps enrich our global comprehension of SME growth and sustainability.
Tariq H. Malik’s essay on the LSE Business Review delves into how narratives shape the understanding of high technology firms in Japan, emphasizing the role narratives play in business contexts. Though the essay primarily focuses on Japanese high-tech industries, it provides a framework that can be related to Arabic business and management literature.
Connecting Malik’s Ideas to Arabic Business Narratives
Narrative as a Cultural Lens: Malik’s essay explores how narratives are culturally embedded, which can be applied to Arabic business literature. In the Arab world, narratives serve as a lens through which business practices and strategies are communicated. Just as Malik discusses the nuanced ways in which Japanese firms use narratives, Arabic businesses utilize storytelling to convey values, ethical considerations, and strategic choices that align with cultural and religious norms.
Narratives in Strategic Development: Malik argues that narratives in Japan help construct the strategic vision of high-tech firms, often emphasizing innovation and long-term growth. Similarly, in Arabic business literature, narratives often guide strategic development, stressing adaptability, community welfare, and ethical conduct. This parallel suggests that narratives in both contexts are vital in forming a strategic ethos that resonates with societal values.
Role of Narratives in Knowledge Transfer: In his essay, Malik highlights the importance of narratives in the dissemination of technological knowledge. This concept can be related to the Arabic context, where business narratives often serve as a medium for transferring not only knowledge but also best practices, particularly in family businesses and traditional industries.
Managing Uncertainty: Malik’s exploration of narratives in the context of high-tech firms managing uncertainty can also be seen in Arabic literature. Narratives in Arabic business often reflect themes of resilience and strategic maneuvering in uncertain markets. Stories of entrepreneurs overcoming economic and social challenges are used to navigate the complexities of business environments in the Arab world.
In essence, Malik’s analysis of the interplay between narratives and business practices provides a useful framework for understanding the significance of storytelling in Arabic business literature. While the cultural specifics differ, the underlying principle—that narratives shape business practices, strategies, and knowledge transfer—remains consistent across different contexts.
Narratives are relevant to our institution in two ways: The internationalization of our quality education, and import the importance and techniques among our students who often join the news media after graduation. We are improving our position every year on the global scene.
Malik is a very interesting and kind person. I met him many years ago in London. I am engaged in the intelligent manufacturing industry and started my own company in China. Malik’s article gives a very good introduction to the key points for the survival and development of small and medium-sized enterprises in China. We need to maintain technological innovation while also maintaining market sensitivity and practicality. If new technologies are not used in the short term, it will result in huge sunk costs. Therefore, during research, we will adjust our direction in a timely manner according to market demands.
I met Professor Tariq H. Malik at my office today, and we are delighted to welcome him to collaborate with us in research and practice. We talked at length about our mutual interests and scholarly activities for the short-term and long-term plans. Regarding the role of narratives in our institution, our graduates are often in demand in the media and creative industries; therefore, narrative is necessary for our development. We develop talent for creative industries, media and various other sectors at all levels. We highlight the career for our graduates, reputation for our institution and prestige for our scholars. Therefore, we value the development of narratives. Si-Yeun Moon, the President of SUM.
Response to Tariq H. Malik’s Article: The Role of Narrative in Teaching and Research in Medical Sciences
I am Sher Afzal Awan, former Registrar at the Pakistan Institute of Medical Sciences, and I am writing to reflect on the insightful article by Tariq H. Malik published in the LSE Business Review. Malik’s exploration of narrative in business and high-tech firms resonates deeply with the field of medical sciences. In my experience, the role of narrative is just as crucial in both teaching and research within this discipline.
Narrative in Medical Teaching
In medical education, narratives serve as the foundation for learning. The process of teaching future doctors, nurses, and healthcare professionals extends beyond imparting scientific knowledge—it involves building a sense of empathy and understanding toward patients. When I taught medical students, I found that case studies and patient stories were indispensable. Narratives provide real-world context, transforming textbook information into relatable scenarios. For instance, teaching through patient journeys allows students to grasp complex concepts such as the progression of diseases, the ethical dilemmas in patient care, and the psychological aspects of treating patients.
Furthermore, narratives shape the students’ ability to listen, observe, and respond to patients effectively. A doctor’s success is not measured solely by their medical knowledge, but also by their ability to communicate with patients compassionately. In this way, narratives do not just educate; they humanize medical practice.
Narrative in Medical Research
Research in the medical field often revolves around the stories of patients, healthcare systems, and the breakthroughs that change lives. When we discuss the results of clinical trials or new treatments, we are essentially telling stories—stories of challenges, hope, failure, and success. Narratives in research make complex scientific information accessible, ensuring it reaches not only the scientific community but also the patients who stand to benefit from it.
For instance, while working on various research projects, I have seen how sharing patient experiences and outcomes can drive advancements in medical practice. These narratives not only help to validate scientific findings but also inspire further research by highlighting unmet needs and gaps in current knowledge.
Narrative as a Bridge
Narrative-based communication forms the bridge between scientific research and public understanding. As a medical professional, I have found that storytelling can demystify medical jargon, making research findings more comprehensible and relatable to patients and the general public. It promotes informed decision-making and public health awareness.
In conclusion, the role of narrative in medical sciences is multifaceted. It is a powerful tool in teaching, allowing students to connect theory with practice. In research, narratives convey the significance of scientific findings in a way that data alone cannot. I firmly believe that incorporating narrative into our academic and professional practices enriches the field of medical sciences and ultimately benefits society as a whole.
I am the founder and CEO of a start-up in the high-tech sector in South Korea. Today I invited Professor Tariq H. Malik to my start-up lab, B-STAR, which is located South of Seoul city. Professor Malik was researches such new firms, and we found a common ground to talk about it. He also pointed it out that he has written an article on how SMEs should use narratives. I introduced my company that is three years old.
I am very thankful to Professor Malik for giving some input, asking some questions, and suggesting some paths to the next stage of development. I truly value the support of narrative to sell our idea for the next stage funding. I also understand that trust building is different than technology building.
This article explains the challenges and opportunities faced by SMEs in China’s ICT industry from an interesting perspective. Professor Tariq points out that finding a balance between abstract and concrete narratives largely determines whether a company can successfully transform its technological advancements into business performance, which will directly impact the survival and development of the enterprise. Technological progress is an important factor for companies to achieve innovation and continuous growth; however, my previous understanding did not consider the potential impact of narrative forms, such as whether they are too abstract or too concrete. As the author mentions, abstract narratives can evoke positive outlooks and emotions, but they may also raise concerns about the costs and threats related to the company’s products and services. I believe this has significant practical implications for SMEs, as it is crucial to choose the right narrative model and resonate with the audience at an appropriate level of perception.
I am at Tsinghua University, and I have become aware of the concreteness of the natural sciences and related context versus the abstractness of the social sciences. Yes, as the article has noted, SME entrepreneurs focus on concrete issues like tangible products and direct rewards in finance. But perhaps they often forget the abstractness of the sustainable value in the audience’s mind. More studies may reveal the nuances.
I am a professor at UPM, and I think this article goes against the trend. The trend is that improve science and get rid of the arts. The reason is that arts and social sciences do not directly contribute to the economy and the firm. This means that narratives are suggested to be concrete for STEM input resources.
I had an interesting exchange with an editor about a paper on narratives and strategies.
Editor:
The editor writes “I regret to inform you that after careful consideration I have decided that your above referenced paper, entitled “X”, which you submitted to “Y” is not appropriate for publication in this journal and we must therefore decline to consider it further. This is not a comment on the quality of your paper, but on its relevance for this journal”. So, here is the fitness issue of the paper. He goes on:
” Specifically, your paper is clearly focused on pure strategic decisions, rather than on innovation or technology development directly, which is the focus of “X”, and you would be well advised to seek publication in a more appropriate specialist journal. Your manuscript may be better suited to one of “Z’ publishers whose editorial team might be in touch with some specific suggestions. Thank you for considering “X”. I hope the outcome of this specific submission will not discourage you from the submission of future manuscripts.
The author:
“I trust your judgement and I understand that the decision is truly based on a misfit between the article and the journal. Your view is that strategy and technology/innovation are different things. You think that my article is a strategy paper, and it does not fit the scope of your technology journal. I also learned this difference today, right now. I had been misinformed before that innovation, technology and strategy are interrelated, and your journal uses both terms. Now I will explore some strategy journals for my article after learning from you”.
Editor:
” Thank you for your note and your understanding! Of course all these topics are inter-related and increasingly so in this day and age. However, we are now experiencing a huge increase in submissions and have therefore to be more discriminating about the scope of the journal. I wish you all the best for finding eventual publication”.
Did you, the reader, notice the difference between the first letter and the reply? Two reasons, two narratives, and the same article on the narratives of legitimacy building.
It is the narrative that differs from the facts. Narratives of driving the actions in the world.
Our link with professor T. H. Malik goes back to 2015 when he was invited as a chair of the committee for a research degree evaluation. He was at DUFE, and since then we have not been in touch. Not that he has appeared in the media, we know he is in the capital of Liaoning. We hope to see him here someday to develop our institution with the right approach to narratives.
My name is He Lian, and I met Professor Malik in 2013 in Dalian. Then I worked with Paul, the CEO at IBM Dalian’s head office. Our team visited Dongbei University of Finance and Economics where he hosted us and we discussed collaboration. Our CEO agreed to open a lab under IBM inside the university. While our CEO was very fond of the professor, I was equally keen to learn more about issues for practice in management. Now 11 years later, I have started my own venture, and coincidently, the professor was in London when I was visiting to explore other opportunities. I requested him to give me a few minutes for a talk at coffee, and yes, he did. I was so delighted and had a coffee talk with him. Now I am not working for IBM, but I am exploring ways to develop my own enterprise. I am sure this knowledge of narrative will be important to consider in my own ventures and those of my collaboration. I would like to thank professor Malik for putting up this article in a simplified way for all of us to understand. The academic article in the journal might not be accessible to all.
The article on Chinese tech firms highlights the importance of storytelling in bridging the gap between abstract technological innovations and tangible market needs. By balancing abstract narratives with concrete ones, firms can effectively communicate with audiences and enhance both legitimacy and performance. This insight is crucial for SMEs navigating competitive environments, where adapting their narratives to align with market demand and technological shifts can make the difference between success and failure. The analysis emphasizes that success is not just about technology but also about how well the story behind it resonates.
This article highlights a critical aspect of the hypercompetitive Chinese technology sector, particularly for small and medium-sized enterprises (SMEs). The emphasis on legitimisation through rhetoric is insightful, as it reflects the need for these firms to not only innovate but also communicate their value effectively to both the market and society. The ability to shift between abstract and concrete narratives depending on market demands is a powerful strategy for survival and growth.
I am an editor of an IB journal, and the author of this article had some reservations because we desk rejected his papers several times. While most of the comments are neutral or in favor of narratives, I am going to say something against narratives.
In the world of Chinese tech firms, where competition is fierce and survival depends on a mix of innovation, strategy, and luck, there’s a growing belief that storytelling might be the secret ingredient to success. But is that really true? A recent study claims that narratives—how a company frames its technological advancements and business journey—play a pivotal role in shaping market perceptions, boosting legitimacy, and ultimately driving growth for small and medium enterprises (SMEs). However, this idea isn’t without its critics.
It’s tempting to think that a compelling story can transform a fledgling tech company into a success. After all, customers, investors, and even employees respond to vision and charisma. In the fast-paced world of Chinese SMEs, particularly in the tech sector, where firms are often battling for attention and market share, a strong narrative might seem like the ultimate weapon. Companies that position themselves as forward-thinking, disruptive, and innovative have an edge—especially in an environment where first impressions matter.
But focusing too much on storytelling can have its risks. Critics argue that no amount of narrative can make up for a company’s weak product or lack of real technological breakthroughs. In a market as unforgiving as China’s, where regulatory hurdles, resource shortages, and cutthroat competition are everyday realities, technology and business fundamentals matter more than words. A well-crafted story might capture interest temporarily, but if the underlying technology is lacking, the story unravels quickly.
Another factor to consider is the diverse landscape of the Chinese tech industry. Not all sectors are created equal, and the role of storytelling may vary. A company in artificial intelligence or biotech may need a different approach than one in e-commerce or hardware manufacturing. And let’s not forget the external forces—geopolitical tensions, government policies, and global market access—that influence whether a company’s story even gets a chance to be heard.
Sure, narratives can help bridge the gap between innovation and public perception. But in the end, the success of Chinese tech firms—especially SMEs—is less about how they tell their story and more about how they perform in the real world. Storytelling is a tool, not the solution. In the highly competitive and resource-driven Chinese market, it’s innovation, adaptability, and solid business foundations that will make the difference between success and failure.
This article resonates deeply with my own experiences as a subject matter expert in the tech and financial sectors. Over two decades, I’ve worked alongside major banks and financial institutions and Fintech industries, from well established large organizations to a start up.
Tariq, who was my teacher and mentor in the 1990s, has always emphasized the importance of narrative in bridging gaps something I’ve seen firsthand in my career, especially in the vibrant landscape of Saudi Arabia.
After leaving Tariq’s classroom, I ventured to the USA to expand my horizons. That journey eventually led me back to the Gulf States, where I’ve cultivated a deep understanding of the financial ecosystems and regulatory frameworks in the greater Middle East. My academic inclinations have kept me grounded in continuous learning, earning a master’s degree in finance and pursuing numerous courses related to my field.
Currently, I’m part of a dynamic team at Awaed Alosool Capital, where we’re developing a fintech app aimed at consolidating various financial products under one umbrella. It’s an exciting venture that combines technology and finance in a way that makes complex solutions accessible to users. However, my journey has also revealed a critical insight about the failure of many startups in our sector: inadequate communication between business professionals and tech teams.
In many cases, startups falter because they fail to articulate their vision in a compelling narrative that resonates with both tech developers and potential users. When the business team speaks in terms that are too abstract or overly technical, the tech team struggles to translate those ideas into practical solutions. Conversely, when tech teams approach problems without a clear understanding of the market and user needs, the end product often misses the mark.
At Awaed Alosool Capital, we’ve learned to prioritize storytelling as a core aspect of our development process. By fostering open communication channels and encouraging collaborative brainstorming sessions, we create a shared narrative that aligns our business goals with technical execution. This approach not only enhances team synergy but also ensures that our fintech solutions genuinely meet market demands.
We’ve witnessed firsthand how bridging the gap between business and technology leads to innovative solutions that resonate with users. When team members understand and can articulate the “why” behind our product, we empower them to contribute their best work. This collaboration has been pivotal in crafting our fintech app, ensuring that it’s not just a tool, but a story that users can connect with.
Reflecting on Tariq’s teachings, I’m reminded that every successful project begins with a strong narrative. The ability to communicate effectively is not just a skill; it’s an essential component of innovation. In a rapidly evolving tech landscape, particularly within the financial sector, storytelling becomes the thread that weaves together ideas, teams, and users.
As we continue our journey at Awaed Alosool Capital, I’m grateful for mentors like Tariq who have shaped my understanding of the vital role of storytelling in tech. It’s a lesson that has transformed not only my career but also the way we approach innovation in the Gulf region and beyond. By prioritizing clear communication and shared narratives, we are not only increasing our chances of success but also redefining what it means to be a fintech company in today’s competitive landscape.
I am a teacher of arts at a university in Singapore, and I was forwarded this blog. I am sure narrative has a place in an art’s life and the life of their institutions. I write from an artist’s perspective. Tariq H. Malik’s exploration of narratives in high-tech firms highlights how these stories help position technology and innovation in the market. High-tech firms often use structured narratives to build trust with stakeholders, including investors and consumers, by clearly communicating their technological capabilities and business goals. These narratives are essential for driving commercial success, as they shape market perception and guide decision-making. For Chinese ICT firms, which are primarily focused on manufacturing, the role of narrative has traditionally been less significant. However, as these firms expand globally and move toward more marketing-focused strategies, strong narratives are becoming increasingly important to differentiate their products in competitive markets.
In contrast, from the perspective of an arts university, narratives serve a broader purpose that goes beyond clear communication and goal-setting. Artistic narratives often invite multiple interpretations and are designed to provoke thought and reflection. Rather than focusing on business objectives or market positioning, these stories aim to explore cultural and social themes. This difference is key: while high-tech firms, especially in the ICT sector, use narratives to build customer loyalty and investor confidence, narratives in the arts are about engaging audiences on a deeper, more conceptual level.
As Chinese ICT firms shift from a manufacturing focus to marketing-driven strategies, the need for compelling narratives to attract global consumers becomes evident. Effective storytelling in this context helps build brand identity and communicate the value of their products beyond technical features. On the other hand, artistic narratives prioritize cultural and intellectual engagement rather than immediate business outcomes. While both sectors use narratives, their purposes differ—one to drive technological and commercial progress, and the other to influence culture and ideas.
We are one of the professional universities among three main categories in the country. In general, and ours in particular, like many Chinese finance and economics universities, balance concrete and abstract frameworks by focusing on practical applications while maintaining a foundation in theoretical and philosophical insights. The emphasis on pragmatism aligns with China’s rapid economic development, where courses and research stress real-world applications such as financial modeling, market analysis, and policy-driven growth strategies. Universities foster close links with industry and the private sector, encouraging students to work on projects that directly impact national and regional economic priorities. This concrete approach ensures that research and education serve practical purposes, addressing pressing economic issues like trade, innovation, and development, while supporting state-driven initiatives such as the Belt and Road Initiative.
At the same time, abstract frameworks rooted in traditional Chinese philosophies and modern theories are also incorporated into the curriculum and research. Confucian and Daoist values of harmony, balance, and long-term thinking influence economic thought in China, blending with theoretical frameworks from Western economics, such as development economics and institutional theory. Marxist economic theory remains relevant in some areas of research. These abstract perspectives allow students and scholars to think broadly about long-term economic trends, social equity, and global interconnectedness, enriching their understanding of the complex interplay between theory and practice in economic systems.
Universities in China have increasingly adopted a hybrid approach, blending concrete, data-driven methods with abstract theoretical frameworks to address global economic challenges. The use of big data, AI, and quantitative analysis has become a key feature of economic research, yet these methods are often connected to abstract concepts like behavioral economics and long-term economic sustainability. This combination of abstract thinking and practical analysis enables Chinese universities to contribute to global economic dialogues while addressing their own national development goals. Through this balance of theory and application, Chinese finance and economics universities ensure that their students and researchers are equipped to operate effectively in both local and international contexts.
I had the privilege of meeting Dr Tariq at NUS’ library while pursuing my master’s degree at the National University of Singapore (NUS). I am truly delighted to witness the continued success of his research. His latest article delves into the intricate process by which technology enterprises in China navigate the path to commercialisation in a fiercely competitive market landscape, leveraging narrative strategies to forge their identities. The discussion of the dynamic interplay between technology, narrative, and perceptual wisdom offers a compelling perspective, enriching our understanding and providing a concise yet profound philosophical insight into the complexities of modern business practices.
I recently met Professor Tariq H. Malik in our university’s cafe, and after learning that I was writing an essay in the field of law studies, he because curious and asked me about the role of narratives in Chinese law. He forwarded his blog link to me in LSE’s Business Review, and I have been preparing my comments for a few days. As a Chinese postgraduate law student at Liaoning University, in the context of civil law, I would approach Tariq H. Malik’s blog in the LSE Business Review with an awareness of the fundamental differences between civil law and common law, particularly as they influence business practices, contracts, and narratives.
In civil law systems like China’s, legal rules are codified, and court decisions tend to interpret and apply these codes rather than create law through judicial precedent. Common law systems, like the UK’s, rely more on case law, where past judicial decisions serve as a significant source of legal reasoning and future rulings. This distinction shapes not only the legal landscape but also how businesses present their strategies, narratives, and disclosures.
In his blog, Malik emphasizes the importance of narratives in business, particularly in high-tech firms. From a civil law perspective, these narratives may align with a more structured and regulated framework, where legal compliance and the detailed adherence to codified regulations are emphasized. For instance, in China, firms are expected to craft narratives that closely adhere to statutory guidelines. In contrast, the UK’s common law environment might offer businesses more flexibility to innovate their narratives, responding to evolving judicial interpretations and market conditions.
Malik’s exploration of how narratives shape business practices could also invite a reflection on how legal narratives differ across jurisdictions. In China, for example, the role of the state in business is more pronounced, and corporate narratives often need to consider both market dynamics and government policies. Understanding these dynamics could be crucial for analyzing and engaging with Malik’s points, particularly when comparing civil law-based approaches with common law-based flexibility in corporate storytelling and strategic disclosures.
From a Chinese legal scholar’s perspective, the comparison of these systems might open discussions on how legal frameworks impact the way businesses, especially high-tech companies, shape their strategic narratives to align with regulatory expectations and market competitiveness. Malik’s focus on narratives can be insightful when juxtaposed with how civil and common law systems foster different approaches to legal compliance, innovation, and storytelling.
Lydia Liu:
Today I am replying to the comments made by Lydia Liu. She commented, “There is a very important Chinese saying that seven points of doing and three points of saying add up to 10 points of perfection. This article mentions a very important concept, how to communicate with customers, especially how to combine the storytelling strategy and technology advanced to communicate with customers to form an effective impact.”
Tariq:
This comment really helps me to explain the narrative I draw on the concrete-abstract spectrum. If the abstractness of narratives makes the 3/10 points, and the concreteness makes the 7/10 points, then we have a historical Chinese framework. The saying is about the goals, and doing is about the methods. However, one needs to know when to return back from the drifted positions from optimal to suboptimal positions. For example, the person, organization or nation becomes too rigid and sclerotic in its trajectories because it takes either the 70% of the perfection at the cost of only 30% of vision. A Chapter I wrote for Sage Handbook for a professor at Columbia University explains this in a very lucid way. So, yes, they complement each other but should not substitute each other.
Very interesting and sound theoretical framework. The role of discursive alignment through appropriate narratives is indeed crucial for high tech SMEs. Looking forward to see the framework being applied in the concrete study.
Very interesting and explained well.
Storytelling has become a crucial factor for the success of Chinese tech firms, differentiating the winners from the losers in a highly competitive market. Here’s how effective storytelling impacts these companies:
1. Building a Strong Brand Identity
2. Attracting Investments
3. Crisis Management and Reputation Repair
4. Internal Motivation and Corporate Culture
A strong narrative can also serve as a unifying force within a company
I am Link,the student of Mr.Tariq.I quite agree with Tariq. In this report, Tariq asked us to understand how the level of Chinese technology companies is growing. Besides, I have a deep understanding of the commercialization and high-tech empowerment mentioned in the article
The text insightfully highlights the crucial role of legitimisation and rhetoric within the highly competitive Chinese technology firm environment. In particular, for small and medium – sized enterprises (SMEs), this perspective is of great value. It makes us keenly aware of the fact that in the tech industry, communication and the way a company presents itself are just as significant as its technological prowess. This recognition broadens our understanding of what it takes for these firms to succeed.The practical advice for small firms to be agile in narrative – shifting based on market and technology changes is valuable. It helps them adapt and enhances their competitiveness.
The analysis provided offers a deep dive into the importance of narrative strategies in the commercialization journey of tech SMEs, particularly in the Chinese context. I found the discussion on balancing abstract and concrete narratives particularly enlightening, as it highlights the dynamic adaptability required in today’s fast-paced tech environment. However, I believe there could be further exploration into how these narrative strategies are affected by cultural differences, especially for companies looking to expand globally. Additionally, while the role of employees as narrative ambassadors is noted, it would be interesting to examine more specific methods by which companies can effectively engage their workforce in this aspect. Furthermore, the mention of policy influence opened up a significant area of consideration — perhaps more examples of successful policy interventions that have aided SMEs in narrative legitimization could be beneficial. Overall, the insights are thought-provoking, and they underscore the multifaceted nature of storytelling as a tool for business growth and legitimacy.
I am a student of Liaoning University, and I met professor Tariq H. Malik in a lecture. He mentioned about this essay, and I wanted to have a look at it. My English is not good and I may have misunderstood some words in the article. Please forgive me.After reading the article, I felt Tariq’s profound insights.When discussing the storytelling of small and medium-sized enterprises, it is also necessary to talk about the role of the government here. We all know that China is a country with a politically driven economy. So many times, many high-tech small and medium-sized enterprises will definitely tell their technology stories, not only to investors in the market, but also to try to explain their important role to the government.From the perspective of an investor, it is important for technology companies to speak to me about the development prospects of their technology and the future return on investment, based on my knowledge reserves and emotional needs. Nvidia is a large company that uses its existing technology, potential future developments, and descriptions of the AI industry to convince investors that we are investing in the right future. Companies like Nvidia are still needed, let alone small and medium-sized ones.I want to say one thing here, China (including Taiwan province）The technological competition with some countries is not only for the sake of competition, but also for the progress of human common productivity.Moreover, we have reason to believe that for a considerable period of time in the future, China will be the main driving force for global technological progress.That’s what I want to say. Thank you for reading
This article is particularly interesting. It illustrates a lot of things about the current competitive environment of Chinese enterprises. Although it’s a bit difficult for me to read it now, I’ve roughly grasped the main points. After reading it, I think communication and rhetoric are really important for Chinese enterprises. Although it was my first day to meet Teacher Tariq today, we got to know a lot about each other through the introduction. Many of the viewpoints in the article are very profound and characteristic of Teacher Tariq. What I like most is the part about the research.
Hello, I’m Sam. This article has inspired me a lot. It said that for small and medium – sized enterprises, it’s important to balance within the information and communication technology department and make technology and narrative work well together for sustainable performance.
We should match different – level narratives according to the situation. It’s necessary to balance abstract and concrete narratives. Only this way can we achieve sustainable performance with long – term efforts. This article is great and has enlightened me.
This article is talking about how should SME do if it need to develop more longer nowadays.My father is a originator of a SME.He mainly responds for making the bond between home and school.Such as attendance of teachers and students,class grading.I really know a SME is difficult to operate.But Tariq’s article gives me some ideas to consider.I think maybe I can share with my dad
So perfect,it present all the importance elements of Chinese firms’ development.They need to combination the ABSTRACT and the CONCRETE.I’m an undergratuated of LNU and proudly became a student of professor Tariq.Fate makes us meet,so lucky and cool,isn’t it?
As an SME owner, I completely agree with the insights presented in this article. It effectively underscores the crucial role of narratives in the survival and success of SMEs in China’s tech sector. By striking a balance between abstract and concrete storytelling, businesses can enhance their legitimacy and performance. I particularly appreciate the emphasis on perceptual wisdom, which highlights the importance of connecting with the audience on the right level. As digital entrepreneurship continues to evolve, adapting these narratives will be essential for growth and innovation. Overall, this study provides valuable guidance for SMEs navigating the complexities of the ICT landscape.
This article provides a fascinating exploration of the challenges faced by SMEs in the ICT sector as they navigate the complex world of digital entrepreneurship. The author presents a comprehensive real-life study, emphasizing the pivotal role of narratives in technology commercialization and their implications for growth-oriented performance. The study’s findings are grounded in robust empirical evidence from SMEs across China, shedding light on the interplay between business technology and firm performance. The concept of perceptual wisdom is introduced as a crucial factor in understanding how different levels of abstraction in narratives influence the commercialization process. Overall, the article offers valuable insights and guidance for SMEs in the ICT sector, highlighting the importance of aligning technological narratives with the perceptual realities of their target audience to achieve success in the digital age.
The article provides profound insights into the significance of storytelling for Chinese tech SMEs. It emphasizes how narrative strategies impact commercialization and firm performance. The research – based analysis is thorough, highlighting the balance between abstract and concrete narratives. It offers valuable guidance for SMEs and policymakers in the ICT sector.I deeply agree with this article
I am a student from Liaoning University. My English name is Selina(Lu Jianing). My English level may cause me to make some small mistakes in reading, please forgive me.
In this article, I learned about the relationship between narrative and business development. I think the development of an enterprise is brought about by the people. These refer to those who work in the enterprise, but also refer to the relevant areas of society in the investors or observers. A good corporate story will attract the attention of investors, which is beneficial to small and medium-sized enterprises. It can also enhance the core competitiveness of enterprises. After all, for two companies with the same development potential, excellent corporate stories are often more eye-catching. It can be said that the story of the enterprise has brought the opportunity for the development of the enterprise, and whether it can seize the opportunity is not determined by telling the story alone.
This is my experience from this article, due to my lack of English, it may not be complete, for which I am very sorry.
I want to say another word.From reading this article, I learned that “the economic benefits of a proper development story are invaluable to a business.” For employees, the future vision and development story of the company is the “reason” that makes them willing to create value. Human’s innate compassion and subjective initiative determine that emotion is a factor of great significance in influencing individual actions. And for investors, of two equally promising investments, the one with a unique story always catches the eye. After all, a good story creates a better first impression than a monotonous presentation. In the face of consumers, a moving story can better mobilize people’s empathy to achieve the purpose of expanding the corporate consumer market. Just like at the time of the earthquake, enterprises and brands that provide supplies for survivors plump the image of enterprises with goodwill actions, leave a good impression in the hearts of consumers, enhance the brand effect, and tell a good corporate story. Therefore, a good narrative can lead to multiple effects inside and outside the enterprise, investment and consumption, and find a foothold in the field of information and communication technology(ICT). To put it in a more extreme way, the narrative of the story of the enterprise uses the emotional feelings of people in order to achieve their own economic interests and bring about better development.
My name is Rex,and I come from AABC of Liaoning University.The analysis provided offers a deep dive into the importance of narrative strategies in the commercialization journey of tech SMEs, particularly in the Chinese context.After reading it, I think communication and rhetoric are really important for Chinese enterprises.The article taught me a lot.
This article provides a comprehensive analysis of the role of storytelling in the success of Chinese tech firms. The author effectively discusses the importance of legitimization through rhetorical narratives and the balance between abstract and concrete narratives. The empirical foundation from SMEs across 500 cities in China adds credibility to the findings. The exploration of the role of perceptual wisdom in influencing the commercialisation process is also valuable. Overall, a well-written and insightful piece.
This is a very detailed and valuable article. It tells that from abstract to concrete can help small and medium-size enterprises to maintain advantages in the fierce market competition. Professor Tariq H. Malik has a very unique perspective.This article will be extremely useful for small and medium-size enterprises
Professor Malik got Best Paper Award at R&D Management workshop held in Wuhan this year, and his paper title was about Civil-Military proximity for technology transfer and at the same technology disclosure to the market. He addressed this balance and found different points on the spectrum: one point for China and the other point for the USA. It was an interesting read, and perhaps the first of its kind in addressing an issue often ignored among academic discourses. I have been thinking of writing a comment for a while, but has been skipping my mind due to so many other activities.
My name is Bai Yu, I come from Lioaning University. My English name is Sherry. In view of my poor English and reading ability, please forgive me for the wrong of my comments. I think this article is very detailed and comprehensive. It tells the role of storytelling in the succes of Chinese tech firms. From eight aspects, such as “the crux of commercialisation” “Abstract to concrete narratives” and so on. Through reading this article, I learned that relationship between narrative and business development. From this article, I can clearly realised that technology and narrative is very important to commercial success. Moreover, in my opinion, this article can provide excellent examples for Chinese businessmen. Thus China’s firms can go further. Above all are my views of this article, if there are mistakes, I feel very sorry about that.
My name is Guo Xingyang and my English name is Ella. I am a student from AABC of Liaoning University. And I am a freshman. I am very happy to meet such a professor as Tariq H. Malik, who not only has outstanding ability to teach in various excellent universities, but also has a sense of humor and is like a friend. Through reading this article, I have learned the factors and processes that determine the success or failure of Chinese technology companies, and I have a better understanding of the key to the survival of small and medium-sized enterprises. In general, this is really a very good article.
This article illuminates the importance of storytelling and how to make use of it. Based on research surveys and specific examples, identify the reason why companies can succeed. In this article, I can learn a lot. The development status and direction of Chinese enterprises which can give us inspiration. It is good for us to read such a perfect artical, and we can prepare for the future.
Small and medium firms need to articulate their technological advancements to survival. Additionally, using abstrast and cancrete legitimisation can effectively bridging the gap between the firm’s sfferings and its audience and legitmising the business in the eyes of the audience. Besides, using the right narrative can sighificantly enhance the credibility, desirability, and appropriateness in the eyes of its audience. Small and medium firms need not only technological advancements but also right narrative to survival and growth.
My name is Lily a student from Liaoning University.The article is meaningful and wonderful.SMEs plays an importance role in our daily life,which plays a crucial role in driving economic growth,fostering innovation,and creating employment opportumities.However,they also face numerous challenges and constraints.Innovation is a key factor for the long term success of SMEs.To make SMEs more success,we should clear market positioning,focus on innovation and strengthen marketing and brand building.This is a wonderful piece of writing and the words flow smoothly and beautifully.It is my pleasure to be your student,it let me learn more about SMEs
I am the student of Liaoning University.My name is Shen Qiaochu.I am so pride that I can read the fantastic paragraph of my English teacher .From the paragraph, I get benefit on it.He describes in clear language and fine words the relationship between high technology and small and medium-sized enterprises.He writes fluently and has many aspects to explain his point of view. Concise language helps people get to the point quickly. And it leaves a lot of room for reflection for the reader.Under the guidance of the teacher, we deeply thought about the role of high technology in promoting small and medium-sized enterprises, and rationally thought about its advantages and disadvantages. In the new era of rapid development of new science and technology, whether we can properly use science and technology to benefit mankind. The language is simple and easy to understand, even for a beginner of English like me. The center of the article is prominent, and the whole text revolves around a center, and the logic is clear.
I am a student from Liaoning University.After reading this article, according to my tempopary English level, I can get most points, I think that it highlights the importance of communication about the progress to the company. Besides,it depends on the background of SMEs in China, it is really a logical article, even it makes more people to pay attention on this situation.Not only tecenology makes effort, but also a good narrate makes sense, it can enhance the competitives of enterprises. A great storytelling really plays an important role.Above all, i think that it is really a fantastic article, and I learn a lot from it.
We saw this essay and its narrative style reminded us that we noticed ten years ago when Professor Tariq H. Malik wrote a narrative reference letter for a student’s entry to postgraduate studies in the USA. It was 2011, and the narrative style of the letter had all the contextual factors to vividly narrate supporting argument. Like it is shown here in this essay, the reference letter of a decade ago moved between concrete and abstract contexts to bring the binaries we see in most letters together. Usually, we see letter are sometimes too concrete or too abstract. This makes them look alike, a signal of rituals. Yes, sciences need narratives. Facts need meaning.
Differences in Narratives Surrounding the Commercialization of High-Technology Firms in the UK and China
The commercialization of high-technology firms in the UK and China is influenced by distinct narratives shaped by cultural attitudes, historical contexts, societal values, and perceptions of innovation and entrepreneurship. These narratives affect how high-tech firms are developed, scaled, and perceived within each country.
1. Cultural Attitudes Toward Entrepreneurship and Innovation
China:
Collectivist Ethos: Chinese culture traditionally emphasizes collective success and harmony. In the context of high-tech firms, narratives often focus on how these companies contribute to national development and societal progress.
Pragmatic Innovation: There’s a strong emphasis on practical applications of technology that can quickly improve people’s lives. The narrative values adaptability and efficiency over pure originality.
Entrepreneurial Momentum: Recent decades have seen a surge in entrepreneurial activities, with stories highlighting self-made tech entrepreneurs who embody modern Chinese ideals of success.
UK:
Individualism and Creativity: British culture celebrates individual achievement and creative thinking. Narratives often center on innovators who break new ground and challenge conventions.
Heritage of Innovation: The UK has a long history of scientific and technological breakthroughs, and current narratives often reference this legacy to inspire contemporary innovation.
Measured Risk-Taking: There’s a balanced approach to entrepreneurship, valuing calculated risks and sustainable growth over rapid expansion.
2. Social Perceptions of High-Tech Firms
China:
Agents of Modernization: High-tech firms are seen as symbols of China’s rapid modernization and emergence as a global power. Their successes are often portrayed as national achievements.
Youth Empowerment: Young entrepreneurs and tech professionals are celebrated, inspiring narratives about upward mobility and the possibilities within the tech industry.
Community Impact: There’s a focus on how technology can address social issues, improve quality of life, and contribute to the collective good.
UK:
Economic Contributors: High-tech firms are recognized for driving economic growth and innovation, but there’s also scrutiny regarding their impact on society and ethical considerations.
Innovation Clusters: Narratives highlight regional tech hubs, such as London’s “Silicon Roundabout,” emphasizing community and collaboration within the tech sector.
Balancing Tradition and Progress: There’s an ongoing dialogue about embracing technological advancements while preserving cultural heritage and social values.
3. Media Representation and Public Discourse
China:
Success Stories Prominence: Media often highlights success stories of high-tech firms and entrepreneurs, fostering a positive image of the tech industry.
National Pride in Technology: Achievements in technology are framed within the context of national pride and progress, reinforcing supportive narratives.
Role Models in Tech: Prominent tech figures are portrayed as inspirational leaders, their journeys serving as motivation for aspiring entrepreneurs.
UK:
Critical Engagement: Media coverage includes both the successes and challenges of high-tech firms, fostering a more nuanced public discourse.
Ethical and Social Implications: There’s significant attention to topics like data privacy, AI ethics, and the societal impact of technology, shaping narratives around responsible innovation.
Diversity and Inclusion: Narratives promote diversity within the tech sector, highlighting the importance of varied perspectives and inclusive practices.
4. Historical Context and Evolution of Innovation
China:
Rapid Economic Transformation: The narrative emphasizes China’s shift from a manufacturing-based economy to a technology-driven one, highlighting speed and scale.
Reconnecting with Ancient Innovation: There’s a resurgence of pride in historical Chinese innovations, linking past ingenuity with modern technological achievements.
Overcoming Adversity: Stories often focus on overcoming obstacles and challenges, reinforcing themes of resilience and determination in the tech industry.
UK:
Industrial Revolution Legacy: The UK’s role in the Industrial Revolution is a foundational narrative, connecting historical innovation with contemporary endeavors.
Steady Progress: There’s an appreciation for gradual, sustainable advancements in technology, valuing long-term impact over rapid change.
Global Influence: Narratives often highlight the UK’s contributions to global standards, research, and international collaborations.
5. Definitions of Success and Aspirations
China:
Market Leadership: Success is frequently measured by market dominance and scalability, with high-tech firms aiming to be leaders both domestically and internationally.
Technological Autonomy: Achieving self-reliance in key technologies is a prominent aspiration, with narratives celebrating advancements that reduce dependency on foreign innovations.
Societal Advancement: The impact of technology on improving societal well-being is a key measure of success, aligning business goals with social progress.
UK:
Innovation Excellence: Success is defined by the ability to innovate and produce cutting-edge technologies that compete on a global scale.
Ethical Practices: There is an emphasis on corporate responsibility, with narratives valuing ethical considerations alongside profitability.
Thought Leadership: Aspirations include being at the forefront of technological research and setting trends in emerging tech sectors.
6. Education and Talent Cultivation
China:
STEM Focused Education: There’s a strong cultural emphasis on science and engineering disciplines, with narratives encouraging young people to pursue careers in technology.
Entrepreneurial Training: Programs and success stories promote entrepreneurship as a desirable and attainable career path.
UK:
Interdisciplinary Approach: Education narratives encourage combining technology with other fields, such as the arts and humanities, to foster well-rounded innovation.
Supportive Ecosystems: There is an emphasis on mentorship, networking, and support structures to nurture entrepreneurial talent within the tech sector.
7. Global Integration and Outlook
China:
Emerging Global Tech Leader: Narratives focus on China’s increasing influence in the global technology arena, with ambitions to lead in fields like artificial intelligence and biotechnology.
Cultural Export through Tech: High-tech firms are seen as vehicles for sharing Chinese culture and values internationally.
UK:
Collaborative Partnerships: The UK values international collaboration, with narratives highlighting joint ventures, research partnerships, and participation in global tech communities.
Navigating Post-Brexit Landscape: Current narratives address the challenges and opportunities of maintaining global connectivity and competitiveness in a changing political context.
8. Societal Debates and Challenges
China:
Work-Life Balance: Discussions around intense work cultures in tech firms bring attention to employee well-being, influencing narratives about sustainable business practices.
Digital Inclusion: There is awareness of the need to ensure that technological advancements benefit all segments of society, leading to narratives about bridging the digital divide.
UK:
Impact of Automation: Debates focus on how automation and AI might affect employment, shaping narratives that consider the future of work and the need for reskilling.
Data Privacy Concerns: Public discourse includes critical examination of how high-tech firms handle personal data, influencing narratives about trust and transparency.
After a long time of just doing research and building reputation and institutional status for my university, I had prepared a course “Philosophy of Science'” to teach to postgraduates and above levels. Accidentally, I entered an undergraduate class because the staff in the admin office misunderstood and no one noticed until the last day. The first thing students asked me about was the narratives. Why are they relevant?
“Define yourself or you will be defined” means you should live your life according to your own values and aspirations, instead of letting others define you. It is like firms create their image, or else, the market creates it for them. Some narratives create an image; other narratives let the market create that image. But this is not the end of the story. Some conditions are stronger than the narrator and make the effect recessive; other conditions are weaker than the narratives and allow the building of the firm’s image. The same goes for all of us. Once I was in London, none I my articles faced desk rejection; once I am in China; 90% face that destiny even though my learning has increased, the quality of my work has touched heights, and solutions to real problems in theory and practice have developed manyfold. I began to collect all decision letters for a book to show how some narratives define us, and some narratives we define.
Thank you for this enlightening article, Professor Malik. Your exploration of storytelling as a strategic tool in the Chinese tech sector is both timely and essential, especially for SMEs striving to achieve visibility and legitimacy in a highly competitive market. The discussion on abstract versus concrete narratives highlights the delicate balance that firms need to strike—moving from broad visionary statements to specific, tangible messages that resonate with their audience. This transition seems crucial for building credibility and trust, especially in a market where rapid technological changes can easily disrupt established narratives.
The idea of “perceptual wisdom” as a way to connect these narratives adds an interesting dimension. It suggests that SMEs can strengthen their market position not only through innovative technologies but by aligning their stories with the expectations and values of their audience. This approach speaks to the adaptability required in modern business storytelling, where narratives must evolve in response to market feedback. I’m curious about whether this model of perceptual wisdom could be applied universally, beyond China’s tech sector, or if its effectiveness is tied to specific cultural and industry contexts. Thank you again for shedding light on this essential facet of growth-oriented performance.
Thank you for sharing this insightful article, Professor Malik. Your exploration of storytelling as a strategic asset for Chinese tech SMEs is both timely and crucial, especially for those seeking legitimacy in a highly competitive market. The contrast between abstract and concrete narratives brings out an important point—firms must find a balance between visionary ideas and specific, relatable messages that connect with their audience. This balance is essential for building credibility, especially in fast-evolving sectors where narratives can quickly become outdated.
The concept of “perceptual wisdom” as a narrative tool adds depth to this approach. It suggests that SMEs can enhance their market relevance not only by adopting new technologies but by aligning their messaging with the values and expectations of their audience. This adaptability in storytelling seems vital in today’s business environment, where narratives must be agile and responsive to market shifts. I’m particularly interested in whether perceptual wisdom can serve as a universal framework across different cultural and industrial contexts, or if it’s most effective within specific environments. Thank you again for highlighting this essential aspect of sustainable growth and strategic communication.
I’m Wendy, a lecturer in Shenyang Conservatory of Music. I think narrative is relevant to every field. I know Tariq for 8 years and we often exchange ideas for education and management. My research is in education management. When I came to know there is a chance to comment on this article, I found it interesting to compare two fields: management and education.
Tariq H. Malik’s essay in the LSE Business Review examines how narratives influence the success of Chinese tech firms, particularly small and medium enterprises (SMEs). He emphasizes that these companies must craft narratives that align with market and societal expectations to legitimize their technological advancements. Malik discusses the balance between abstract and concrete narratives, suggesting that firms should adapt their storytelling to resonate with their audience’s perceptual wisdom.
In educational management, narratives serve to communicate institutional values, achievements, and goals to stakeholders such as students, faculty, and policymakers. These narratives aim to foster community engagement, support, and a shared sense of purpose within the educational environment.
Both contexts highlight the strategic use of narratives to establish legitimacy and align with audience expectations. In business, narratives are crafted to synchronize technological advancements with market perceptions, while in education, they are designed to convey institutional identity and objectives. The common thread is the deliberate construction of narratives to influence audience perception and achieve organizational goals.
China Daily invited me to write an article on the role of the BRI project in the world economy. I was researching resistance to the BRI project in the Western Media, forthcoming in two journal articles: China Economic Review and China & the World Economy. Here is what is looks like in layman’s context:
https://www.chinadaily.com.cn/a/202411/06/WS672ab247a310f1265a1cba83.html
After reading Malik’s article, I realized the importance of balancing concrete and abstract technical narratives for ICT SMEs. I’m quite interested in the field of intelligent manufacturing. Robotics technology also falls under the high-tech-intensive industries, and I’m wondering whether this strategy might apply to the robotics field as well. Imagine if a robotics company, when promoting its products, could use specific technical features (such as the robot’s specific functions or application scenarios) along with concrete storytelling (such as how it solves real-world problems for users). This could potentially shorten the psychological distance between the customer and the technology, making it easier to gain market acceptance.
Moreover, due to its novelty, robotics technology could create psychological distance for users, and smaller robotics companies might face even greater market competition pressures. Compared to large corporations, they often have disadvantages in resources, technology patents, and market share. In this situation, perhaps only by effectively telling the “story” of their product (technology) can they establish a foothold.
Finally, I wonder if there is a correlation between the degree of innovation and narrative ability. If a company’s product is highly innovative, does narrative ability become less important? Is storytelling particularly crucial for the “average” majority? Additionally, is storytelling ability linked to innovation capacity? Highly innovative companies are typically adept at identifying and solving problems, which allows them to quickly pinpoint key issues. This clarity could also be reflected in the way they convey their narratives.
Overall, this article has sparked a lot of thoughts for me. It’s very interesting, with a fresh perspective, and offers insights that many companies could reference during their commercialization processes.
I majored in accounting from a leading university in China. I found this article by Tariq H. Malik on narratives relevant to my field. Especially, we, accountants and auditors like lawyers, share our tacit knowledge more than explicit knowledge or physical technologies. We rely on narratives more than it is thought we do. For instance, several articles have been published on the construal levels of narratives in the accounting profession. I make a point on the article in the LSE Business Review:
In his article “Storytelling makes the difference between success and failure for Chinese tech firms” published in the LSE Business Review, Tariq H. Malik explores how strategic narratives influence the success of Chinese technology firms.
LSE BLOGS
While the primary focus is on management and innovation, the insights have significant implications for the accounting field:
Financial Reporting and Narrative Disclosure: Malik emphasizes the importance of aligning technological advancements with market expectations through effective storytelling. For accountants, this underscores the need for comprehensive narrative disclosures in financial reports, providing stakeholders with a clear understanding of a firm’s strategic direction and technological initiatives.
Performance Metrics and Legitimization: The article discusses how firms use narratives to legitimize their operations and enhance performance. Accountants play a crucial role in developing performance metrics that reflect both financial outcomes and the effectiveness of these legitimizing narratives, ensuring a holistic view of the firm’s success.
Risk Assessment and Management: Malik’s insights into the dynamic nature of market demands and technological advancements highlight the importance of agility in narrative strategies. For accountants, this translates to the need for robust risk assessment frameworks that account for the potential impacts of shifting narratives on financial stability and compliance.
Malik’s article implies that accountants should integrate strategic storytelling into financial reporting, develop performance metrics that capture the impact of narratives, and enhance risk assessment processes to accommodate the evolving nature of corporate narratives.
I studied with DUFE about 10 years ago, and Professor Malik taught us one Semester there. I remember he asked us to collect data on a negotiation survey for cross-country comparative analysis. If I recall is correctly, he had referred to ‘narratives’ in success of inter-firm business negotiation for alliance building. We had an institute call, GIME, and I learnt that professor Malik suggested that name. Later, after he left Surrey University Institute in Dalian and DUFE, our school (GIME) had vanished during covid. In my memory, the concept of narratives is still fresh and meaningful.
In 2016, I set my sights on securing a PhD position at a top Economics and Management university in Northeastern China. At the time, the China-Pakistan Economic Corridor (CPEC) under the Belt and Road Initiative (BRI) was thriving, and several PhD positions were available through state-funded sources. I reached out to Professor Malik, hoping he might serve as my doctoral supervisor.
Professor Malik responded with an insightful message. He explained that to pursue a PhD in China, I would need a local supervisor, as foreign academics are not authorized to issue official acceptance letters to supervise doctoral students. While he could assist technically in my research, he clarified the importance of involving Chinese supervisors due to distinct legal, linguistic, and financial requirements that differ significantly from those in other countries. Though I hadn’t known him personally, I was deeply appreciative of his thoughtful and transparent response.
Here is my brief encounter with professor Tariq H. Malik at Heathrow this year in a brief narrative:
On the way to our long-anticipated cruise, my wife and I decided to make a stop in London. Early that morning, we checked out of our hotel and waited for a hop-on-hop-off bus near Heathrow. As we stood there, I noticed an elderly couple, also waiting, struggling with their luggage in front of us. My wife and I engaged in a brief chat with them and offered help, sharing a few friendly exchanges about travel and our orientations.
Behind us stood a well-dressed man, wearing a jacket with a distinctive blue emblem, suggesting he held some official or academic position. When the bus arrived in front of the hotel, we all boarded, and as it looped onto Bath Road back toward Heathrow, I leaned over and asked the driver if he knew where I could find “Cafe Reino” at the airport. With a thick British accent, the driver replied, “Cafe what?”
I repeated my query, but the driver could not make out what it meant. “Never mind,” I said, smiling it off with little bit of blush. Just then, the gentleman who boarded from the same hotel in that jacket leaned forward and asked, “Are you looking for Cafe Nero?”
“Yes, that’s it!” I replied, relieved.
He smiled and informed me that it was located on one of the upper floors of the terminal. Our conversation naturally flowed from there. He was decent and approachable, so I felt at ease to ask, “Do you often pass through Heathrow or visit that cafe?”
He nodded. “Yes, at both the airport and the hotel we just left.” Before I could ask where he was heading this time, he added, “I’m actually heading to Chicago for the Academy of Management Conference, where I’ll be presenting my research paper–some about Isomorphism in decision making.” Then, almost as an afterthought, he introduced himself: “My name is Tariq H. Malik, and I’m a professor.”
I shared a bit about myself with him, explaining that I work in health technology, and I commute between California and the Philippines. By then, our bus had reached the terminal. As we disembarked, juggling our suitcases, Professor Malik turned and offered, “Follow me—I know the way.”
He led us up a series of escalators, waiting patiently at the top while we caught up. At the last escalator, he pointed to his luggage and asked us to hold on for a moment. He dashed off, returning shortly with confirmation. “Yes, Cafe Nero is on this floor,” he said, smiling.
My wife and I exchanged a look of pleasant surprise—rarely had we experienced such concerning individual–a stranger in a busy city like London. I took out my simple business card and shared my email address, and he reciprocated after I did.
After our cruise trip, I returned to the U.S., then travelled to the Philippines, and finally made my way back to California. A few months later, I stumbled upon an article in the LSE Business Review by the same Professor Tariq H. Malik. Inspired, I wanted to share this memory of our unexpected and encounter in London. This narrative, told in my own style, is a small tribute to a memorable meeting and the kindness of a fellow traveler.
Trump won with narratives; Harris lost with facts
In the evolving landscape of political communication, the battle between narrative-driven rhetoric and fact-based discourse has taken center stage. This essay examines this dynamic within the 2024 U.S. election, where former President Donald Trump’s narrative-centric approach triumphed, while Vice President Kamala Harris’s fact-focused strategy struggled. I offer this analysis from the perspective of my own insights, as I have argued that narratives, when effectively crafted, often overshadow even the most rigorously constructed factual frameworks. The interplay of narratives and facts goes beyond the personalities of Harris and Trump, encompassing the broader strategies of the Democratic and Republican parties.
Republicans’ Power of Narratives: How Trump Captivated with Stories
Republicans, and Trump in particular, have long shown a keen understanding of the persuasive power of narratives, often preferring emotional appeal over technical detail. The Republican approach in 2024 was no exception; it was steeped in themes of “America First,” “draining the swamp,” and “protecting American freedom.” Trump’s stories resonate deeply with his supporters because they provide a sense of belonging and validation. By engaging with these emotionally charged narratives, Trump and his party bypassed the need for exhaustive policy explanations, instead connecting with voters who felt their own stories reflected in his.
I have written extensively on how narratives are not merely stories; they are mechanisms of alignment that provide coherence in the minds of audiences, even when the narrative might seem oversimplified. Trump and the Republican party excel at this kind of narrative construction, creating an “us versus them” dichotomy that turns complex political issues into accessible, emotionally resonant themes. This approach minimizes the importance of factual accuracy, emphasizing instead the validation of audience sentiments and offering a sense of empowerment. Trump’s narratives foster a visceral sense of connection that bypasses analytical scrutiny and appeals directly to the heart.
Democrats’ Challenge: Facts and Data in a Campaign Strategy
In contrast, the Democrats, with Kamala Harris as a prominent spokesperson, chose a more fact-oriented approach. Harris’s speeches and the Democratic Party’s campaign emphasized data, accomplishments, and policy plans grounded in research. This fact-centered approach aimed to appeal to voters through logic and evidence. However, while the Democratic Party’s focus on facts is intellectually sound, it has limitations in a political landscape increasingly shaped by narratives rather than strict data interpretation.
My own writings address the inherent limitations of purely factual communication when divorced from the narrative context. Facts, while crucial, often fail to engage audiences on an emotional level. They can appear cold or overly technical, making it difficult for voters who prioritize shared values over data to connect. For Harris and the Democrats, bridging this emotional gap proved challenging; without a story to anchor their facts, their data-driven approach could feel clinical and distant.
From my perspective, the Democrats’ approach could have benefited from a closer integration of narrative coherence. When I write about “narrative alignment,” I argue that facts need to be embedded within an engaging story that resonates with audiences’ identities and beliefs. Facts, without this narrative framing, can remain abstract and disconnected from voters’ daily realities. Harris and the Democrats ultimately presented a platform grounded in data without the accompanying emotional narrative, a gap that Trump and the Republicans capitalized on effectively.
The Persuasive Power of Narrative: Insights from My Work
Narratives are powerful tools of persuasion. I have argued that they shape perception and influence behavior, and in political contexts, they give meaning to policies and statistics, transforming abstract data into relatable stories that touch on the values and emotions of the electorate. Trump’s narratives appeal to cultural and economic anxieties, simplifying issues into binary choices that feel accessible and compelling to his supporters. Republicans frame their policies within themes of American identity and resilience, themes that resonate strongly with their voter base.
In contrast, Harris’s and the Democrats’ focus on factual integrity lacks the narrative engagement necessary to match the Republicans’ storytelling prowess. My research on narrative alignment suggests that effective communication requires blending narrative coherence with factual accuracy. While facts are essential, they must be contextualized within a narrative that makes them relatable and significant to the audience’s life experience.
This dominance of narratives has implications for democracy, raising questions about the role of truth in political discourse. If narratives can eclipse facts, the value of factual accuracy in the democratic process becomes ambiguous. Narratives that “feel” true can overpower data-based facts, leading voters to make decisions based on emotion rather than evidence. My work emphasizes that while narratives are crucial, they should never compromise truth. Instead, they should bridge complex issues and public understanding, making facts accessible without sacrificing accuracy.
Some of us remember one of the TV debates between Bush and Algore in 2000. Algore presented a fact with calculations. Bush said like this: “here he goes again with his fuzzy talk.” Bush went to war with narratives; others presented facts (some European leaders, British MPs, and scientists) against the far. Facts had been lost; narratives had won at high cost. Most of us forget that the world is standing the grey area between lie and truth. If there were no lies, the world would have collapsed. In other words, there will be no world as we know it.
I am Baomin Dong, a professor in the field of economics history. I attended one of the conferences in Shenyang and I met Professor Tariq H. Malik when he was one of the guest editors of a Special Issue. Now I meet him through this insightful article on narratives in the LSE Business Review. His exploration of how narratives are flexible enough to be linked to nations, industries and firms. The real impact of economic policies and influence on international trade dynamics is highly dependent on narratives.
As a scholar in international trade and economic history, I am particularly intrigued by the power of framing economic discourse. His argument that narratives can drive policy decisions and impact global trade resonates with historical instances where prevailing narratives have either propelled or hindered economic development.
In the context of China’s economic history, the narrative of “reform and opening-up” has been a driving force behind our integration into the global economy. This narrative is eloquently developed, highlighting the significance of the imbalance between facts and meaning–the narrative. He has rightly said in his comments about narratives in the context of recent elections in the USA:
One party won narrative tools; the other party lost with factual tools
This article offers an insightful exploration into how Chinese tech firms, especially small and medium-sized enterprises, navigate survival in a highly competitive market through the art of storytelling to establish legitimacy. It not only unpacks the logic behind technology commercialization but also brilliantly explains how the delicate balance between abstract and concrete narratives can impact a firm’s growth trajectory. By introducing the concept of perceptual wisdom, the author provides a fresh perspective that connects technological advancements with market demands and societal perceptions, underscoring the critical role of effective storytelling for tech companies.
The discussion on the interplay between abstract and concrete narratives, psychological distance, legitimacy, and market influence is particularly impressive and clearly presented. This approach not only offers practical strategic advice for SMEs but also provides valuable insights for policymakers. Overall, the article skillfully combines theory and practice with a unique perspective and comprehensive content. I look forward to seeing more analyses of this depth!
The Art of Narrative: Bridging Mathematics and Business Through Storytelling
As a mathematics student at Northeastern University, I’ve often found myself navigating the abstract nature of numbers and theories. Mathematics, by its very nature, seems distant from the colourful tapestry of narratives that weave through our daily lives. Yet, this perceived isolation is but an illusion. The reality is that narratives play a pivotal role in how we teach, learn, and even apply mathematical concepts. They transform dry equations into compelling stories, making the subject not just intellectually stimulating but also emotionally resonant.
My cursory introduction to narratives and the power of storytelling came after an encounter with Professor Malik at Liaoning University a year ago. He handed me a book, a work of fiction, and encouraged me to explore the world of stories. When I asked how long I could keep it, he told me I didn’t have to return it. His parting words lingered with me: “Imagine we do not have language, communication, and contextualised thoughts!” It was then that I realised the profound depth and breadth of narratives. They are not just tales we tell but are fundamental to our understanding and communication of complex ideas.
This revelation became even more significant when I encountered the essay by Professor Tariq H. Malik in the LSE Business Review. The essay illuminated how supportive policies are fostering the growth of small and medium enterprises (SMEs). These businesses, often the lifeblood of economies, are blossoming thanks to conducive environments that encourage innovation and entrepreneurship.
But what truly bridges my world of mathematics and the realm of business is the concept of storytelling. A vivid narrative can significantly reduce the psychological distance between a product or enterprise and its customers. Take, for instance, the confectionery brand Xiaoyoung. Their advertisement proclaims, “Each sweet has a different flavour, and there are a variety of flavours for you to choose from.” This simple yet evocative message does more than just inform; it invites customers into an experience. The result? An impressive 25–30% of customers return after their first purchase.
This strategy underscores a fundamental truth: stories engage us on a level that raw data and facts cannot. In the context of SMEs, storytelling becomes a powerful tool to differentiate themselves in a crowded market. It allows them to build authentic connections with customers, fostering loyalty and repeat business.
The advent of Information and Communication Technology (ICT) amplifies this effect exponentially. ICT makes it remarkably easier to transmit information and share narratives across vast distances. Enterprises can now make their products and services accessible and available to potential customers with unprecedented efficiency. It’s not just about visibility; it’s about crafting and sharing a story that resonates on a personal level.
In mathematics, narratives help demystify complex concepts. They provide context and meaning, turning abstract notions into relatable ideas. Similarly, in business, especially for SMEs, narratives can humanise a brand, making it more approachable and trustworthy. Indeed, narratives are the invisible threads that connect diverse fields like mathematics and business. They are as essential in teaching and learning natural sciences as they are in building customer relationships and in driving the success of enterprises. As Professor Malik implied, without language and contextualised thoughts, our ability to understand and innovate would be severely hampered. Embracing storytelling is not just beneficial—it’s indispensable for progress in any field.
Mathematicians and engineers understand the mechanisms of natural functions; narrators (entrepreneurs) make them move along the transformation line. That is what Professor Malik says in his research articles.
Comment on Tariq H. Malik’s Essay in the LSE Business Review
Dr. Malik’s insightful essay presents a compelling narrative on how the flexibility and framing of narratives influence the dynamics of global industries and national policies. As someone who researches international trade and innovation, I found his exploration of the interplay between narratives and strategic positioning particularly resonant.
1. Narratives as Strategic Assets in International Trade
Dr. Malik aptly highlights the role of narratives in shaping competitive advantage. This is especially relevant in the context of global trade, where the ability to craft compelling narratives often determines the reception of trade policies and agreements. In China, for instance, the “Belt and Road Initiative” demonstrates how a well-framed narrative can redefine perceptions, aligning economic integration with shared prosperity. This perspective enriches our understanding of how trade agreements are not just economic instruments but also cultural and political constructs.
2. Innovation and Entrepreneurship: A Narrative Perspective
The essay’s discussion of narratives in innovation and entrepreneurship aligns with trends I’ve observed in China’s transition to an innovation-driven economy. Narratives of “mass entrepreneurship and innovation” have galvanized entrepreneurial activity and attracted global attention to China’s technological advancements. However, it would be valuable to explore how differing national narratives—such as those in emerging versus developed economies—impact the diffusion of innovation.
3. The Role of Narratives in Bridging Cultural Differences
Dr. Malik’s emphasis on the cross-national variation in narratives is particularly insightful. In the context of international education, which I am deeply involved in, narratives serve as bridges between diverse cultural perspectives. For example, the narrative of China as an “open and inclusive” nation has been instrumental in attracting international students and fostering global collaboration. This highlights how narratives are not only tools of economic diplomacy but also vehicles for cultural exchange.
Suggestions for Further Exploration:
Comparative Case Studies: Future work could probe comparative case studies that illustrate how narrative strategies differ across industries and regions. For example, how do narratives in high-tech industries vary between Silicon Valley and Shenzhen?
Temporal Dynamics: It would be fascinating to examine how narratives evolve over time and how firms and nations adapt to shifts in public perception.
Integration with Quantitative Analysis: Incorporating empirical data to measure the effectiveness of certain narratives could further substantiate the claims and provide a bridge between qualitative insights and quantitative rigor.
Dr. Malik’s essay invites an interdisciplinary dialogue on the strategic importance of narratives in global business and policy-making. It is a valuable contribution that will undoubtedly inspire further research and application in the fields of trade, innovation, and beyond.
I am reflecting on Professor Malik’s article in the LSE Business Review that motivated me to add a comment, despite my limitation in the language. I am Song Xin, a postgraduate student in International Business Studies at Northeastern University, China.
Professor Malik’s perspective highlights on how narratives contribute to the outcomes of SMEs in China, particularly in high-tech sectors. His emphasis on narrative adaptability and its role in shaping firm success resonates with the growing importance of intangible assets in international business. From my perspective as a postgraduate student investigating the survival rate of Chinese subsidiaries abroad, I see potential parallels between the domestic and international contexts of SMEs. It raises an intriguing question: can the narrative-driven approach to success in China extend to SMEs operating across foreign markets?
As Professor Malik highlights, narratives are instrumental in aligning firm strategies with stakeholder expectations. I wonder if this alignment is equally critical for SMEs abroad, where cultural, regulatory, and competitive dynamics vary significantly. For instance, within the Belt and Road Initiative (BRI), Chinese SMEs might leverage narratives that emphasize mutual growth and infrastructure development. On the other hand, in non-BRI countries, the emphasis might shift toward innovation or local integration. The ability of SMEs to navigate the concrete (data-driven) and abstract (vision-driven) spectrum of narratives could be key to their survival and competitive advantage.
Professor Malik added that, “It is interesting to explore how narratives influence SMEs’ performance across sectors and geographies, whether Chinese subsidiaries in BRI member countries derive unique value from narratives compared to those operating in non-BRI regions?” This line of inquiry may discover how narratives adapt to varying socio-economic landscapes and whether they become more concrete or abstract depending on the host country’s institutional frameworks. Professor Malik’s essay provides a robust foundation for this exploration, and I look forward to any discover or insights that contribute to this dynamic and under-researched field.
I am a Professor in Agricultural Economics, and I recently moved from the North to Chongqing. During my research, I travelled to rural areas all over China to interview farmers and their small enterprises. Only after reading Tariq’s essay, I realized that small enterprises in the countryside have rich narratives about their products, processes, and problems. They have different reasons and results in the digitalization process.
While I was aware of narratives that Tariq mentioned in passing when we co-authored a study on the issue of population pressure, I got the rich context of it by understanding three concepts: (a) narratives and facts, (c) concrete and abstract, and errors of omission and commission.
I realized during my trips that sharing economy is a new concept for the modern organizations and policy makers, Chinese farmers have been working shared economies for centuries, more so in cooperative enterprises. The narratives they need is about digital implications for performance and procedural justice.
I am Fang Shanshan. As a student of Electrical Engineering and Automation at Liaoning University, I never imagined that narratives could hold any significance for engineers like us. One day, while passing through the campus playground with a fellow student, we noticed a foreigner engaging in an unusual form of tennis. He was playing with a ball tied to a base filled with water; after each hit, the flexible thread would pull the ball back, allowing him to strike it again. Intrigued by this setup, we paused to watch.
The man noticed our interest and invited us to give it a try. This chance encounter led us to meet Professor Tariq H. Malik. Since we tend not to ask questions directly, I searched for him online and found his articles in the LSE Business Review. Using a mix of translations and my limited English, I managed to strike up a conversation about his blog. When I asked him about it, Professor Malik introduced us to the concept of narrative and explained its relevance even in the field of engineering. He illustrated how storytelling can be a powerful tool to communicate complex ideas, inspire innovation, and connect disparate concepts.
This experience transformed my thinking from focusing on dry facts to appreciating rich context. I realized that engineering isn’t just about circuits and calculations; it’s also about effectively conveying ideas and solutions. Embracing the power of narrative has enriched my approach to problem-solving. I now see storytelling as an integral part of my engineering journey, helping me become not just a better engineer but also a more effective communicator.
As a professor specializing in organizational behavior and human capital at Northeastern University in Liaoning province, I have long been fascinated by the intricate dynamics that govern human interactions within organizations. Recently, my interest in the distinction between concrete and abstract narratives was rekindled upon reading a preview of an article in the LSE Business Review. This piece illuminated the profound impact that the framing of narratives can have on organizational understanding and effectiveness. It prompted me to reflect on how these concepts play out in our field and how they influence the way we perceive and manage organizational challenges.
This contemplation led me back to a seminar hosted by our business school two years ago, where we had the welcoming Professor Tariq H. Malik. As another professor who was invited from San Antonio in the USA had finished his talk on why and how to write paper in his experience as an associate editor of a journal in the USA, it was Professor Malik’s turn to speak, and he started with these remarks: “When I came to China 10 years ago, I thought Chinese society was an abstract one; now, as I am about to leave China, I have discovered that Chinese society is a concrete one.” Later, his contract got renewed and he stayed there.
At the time, his statement seemed paradoxical to me—both overly broad and narrowly concluded. My limited proficiency in English and the prevailing assumption that soft issues like communication and context were of lesser importance hindered my ability to fully grasp the depth of his insights. Now I can comprehend it.
Now, with a deeper understanding of the role narratives play in shaping organizational behavior, I appreciate the significance of Professor Malik’s observation. The shift from viewing Chinese society as abstract to recognizing its concrete nature reflects a profound realization about the importance of context and tangible experiences in influencing human behavior. This enlightenment has not only broadened my perspective but also reinforced the critical importance of effective communication and contextual awareness in our field. Embracing the power of narratives has enriched my approach to teaching and research, highlighting that the stories we construct and share are pivotal in navigating and influencing the complex world of organizational dynamics. For instance, he believes that the problem with Chinese education system is imbalance between manufacturing-oriented teaching and research and social sciences that provide fuel to creativity.
My name is Wang Yi, and I am a university student studying engineering in China. In my view, narratives hold a profound influence on positive psychology by shaping how we perceive ourselves and the world around us. Within this, the interplay of concrete and abstract narratives creates what I call a substitution effect—a trade-off where the emphasis on one diminishes the relevance of the other. Concrete narratives ground us in reality, offering clarity and direction, while abstract narratives inspire imagination and possibility. This trade-off suggests that personalities, positions, and even nations can never fully converge, as the narratives they adopt will always reflect unique priorities and values.
Engineering, by its nature, is about precision and functionality, which creates a static and structured view of life. However, it is narratives—both concrete and abstract—that fill the spaces and gaps left by pure engineering. These narratives provide meaning and context, transforming static systems into dynamic experiences. For instance, while a bridge may serve its functional purpose, the story of why it was built or what it connects can inspire community and culture. Similarly, in life, narratives complement the technical and practical aspects by introducing the emotions and aspirations that truly make life vibrant and meaningful.
Pervez Ghauri
Professor of IB, University of Birmingham
Chinese tech firms succeed
By Tariq H. Malik
This is a very interesting and timely piece. The survival and success of smaller
technology firms is a major concern of most countries at this time. In the UK it is
widely discussed, and the new labour government is designing new policies and
strategies to stimulate new smaller technology firms as these are considered to be
the businesses of the future. For China these firms are of even more importance as
there is a lack of entrepreneurial traditions and experience. This piece points out that
for China innovations is less of a problem as the country has been quite innovative in
recent decades. Here more emphasis is needed on commercialisation and marketing
efforts.
Building the right image and profile is thus more important to achieve legitimacy and
social license as there is now more focus on societal impact of businesses. As
pointed out in the paper, the growth and the social values are now intertwined.
Gathering evidence from 500 cities, the paper indicates that the legitimisation of the
business in the society is at least equally important as technical innovations. It also
calls upon policy makers to match their policies to these needs.
Dear Professor Ghauri,
Thank you very much for your insightful and encouraging comments on my article. I’m delighted to hear that you found the piece both interesting and timely, especially in the context of current discussions about the survival and success of smaller technology firms in the UK and China.
You raise an important point about the critical role of commercialisation and marketing efforts in China. While the country has indeed made significant strides in innovation, bridging the gap between innovation and market acceptance remains a key challenge. I wholeheartedly agree that building the right image and achieving legitimacy are essential for these firms, particularly as societal impact becomes increasingly significant in business success.
I’m glad that the findings from the 500 cities resonated with you, highlighting the intertwined nature of growth and social values. Your observation about the need for policymakers to align their strategies with these realities is spot-on. It’s my hope that this research will contribute to shaping policies that support the unique needs of smaller technology firms, not just in China but globally.
Your comments as one of the leading figures, after Dunning and Buckley, counts for me even though the article is about SMEs in China. I understand that your group from Manchester got funding in the UK on similar topics in the field–if I am not wrong. My appreciation comes from the understanding of your dedication to IBR that you had founded, developed and opened to everyone–unlike many journals with focus on selected a few and cliques.
Thank you again for taking the time to share your thoughts. Your feedback is invaluable, and I look forward to any future discussions we might have on this topic.
Tariq (Shenyang, Liaoning, China)
My name is Zhang Zhongzhao, and I am at Dalian University of Technology (DUT), using NLP. Now I work in the field of big data. In practice, at my organization, we are exploring the data security risk with the LLM and ML, and I met the author of this article in Xiantan Cafe, on a university campus, and we shared contacts because of shared locations, interests and intellectual humility. He referred me to his article in the LSE Business Review. I am reflecting on this as follows in three points:
1. Framing Risks and Opportunities Through Narrative
Tariq H. Malik’s article in the LSE Business Review emphasizes the dynamic role narratives play in shaping industries and organizations, particularly in high-technology domains. This insight is directly relevant to my work in big data and NLP. The narratives surrounding Large Language Models (LLMs) often highlight their potential for innovation, automation, and enhanced decision-making. However, as Malik argues, narratives must also address complexities and contradictions. In my field, this includes acknowledging the dual nature of LLMs as both enablers of progress and potential vectors for data security risks. Malik’s perspective inspires me to advocate for more balanced narratives that not only celebrate technological achievements but also critically examine their implications for organizational integrity and data ethics.
2. Intellectual Humility and Knowledge Integration
One of Malik’s key points in the article is the importance of intellectual humility in fostering meaningful collaboration and dialogue. My encounter with him at Xiantan Café exemplified this principle, as our shared interests in technology and narratives led to an exchange of ideas that transcended our specific domains. His emphasis on intellectual humility resonates strongly with my belief that addressing the challenges posed by LLMs and ML in big data requires diverse perspectives and interdisciplinary cooperation. This approach mirrors Malik’s call for narratives that bridge gaps between theory and practice, enabling professionals like myself to engage critically with complex problems while remaining open to new ideas and solutions.
3. Navigating Concrete and Abstract Narratives in Data Security
Malik’s article explores the tension between concrete and abstract narratives, especially in technology and policy discourse. This framework offers a valuable lens to examine how my organization addresses data security risks associated with LLMs. While concrete narratives often focus on specific technical solutions or risk assessments, abstract narratives—such as the promise of “intelligent automation”—shape stakeholder expectations and broader strategic decisions. Malik’s argument underscores the importance of aligning these two levels of narrative to create coherent, actionable strategies. Inspired by this insight, I am reflecting on how my organization can craft narratives that not only address immediate security challenges but also contextualize them within broader ethical and societal concerns.
I am privileged to read Professor Tariq’s article. This article delves into the business challenges faced by Chinese technology companies in a fiercely competitive market. In this field, legitimization and rhetorical narrative are crucial, especially for small and medium-sized enterprises. They need to combine technological advancements with market demands and societal perceptions through appropriate narratives. The article points out that small and medium-sized enterprises need to adapt flexibly to market changes, shifting narratives from abstract to concrete or vice versa.
For Chinese technology companies, the process from establishment to commercialization is full of challenges and opportunities. Uneven distribution of resources makes legitimization a key to survival and growth. Research shows that technology commercialization is not just about showcasing innovation but also about creating resonance with the audience. Suitable narratives can enhance the trustworthiness and attractiveness of companies in the eyes of their audience. This article provides long-term reflections on how they can survive.
My views on Tariq H. Malik’s Article in the LSE Business Review
I am Liu Yijia, a PhD student at LNU in China. I have been introduced to this article about narratives. As a student of business management, I was intrigued to write something in Chinese and then translated it into English.
Professor Tariq H. Malik’s article in the LSE Business Review is a thought-provoking analysis of the challenges faced by Chinese technology companies, particularly small and medium-sized enterprises (SMEs), as they navigate the complex process of legitimization and commercialization in a competitive market. His exploration of the interplay between technology, market demands, and societal perceptions is both insightful and timely.
The article emphasizes the critical role of narratives in helping these firms establish their legitimacy and align their technological advancements with audience expectations. It argues convincingly that narratives are not static but must adapt flexibly to market dynamics, transitioning from abstract to concrete, or vice versa, as circumstances demand. This perspective sheds light on a nuanced yet underexplored dimension of business strategy in the technology sector: the art of storytelling as a strategic tool.
Professor Malik highlights that in a landscape marked by resource asymmetry, effective legitimization is vital for survival and growth. His assertion that the success of technology commercialization hinges not only on innovation but also on creating resonance with the audience is particularly compelling. By leveraging suitable narratives, companies can enhance their trustworthiness and attractiveness, ensuring they connect meaningfully with stakeholders.
The article offers a long-term reflection on the importance of narrative adaptation, providing practical implications for SMEs striving to survive and thrive in challenging environments. It invites readers to consider the strategic significance of combining technological development with market alignment through tailored narratives.
As a publisherin various disciplinese, I have a special take on the LSE Business Review article aimed at Chinese readers.
Reflection on Narratives and Academic Publishing
The Importance of Narratives in Science and Research
The focus on narratives highlights a powerful yet often overlooked dimension in academia and publishing: the role of storytelling in advancing knowledge. Narratives are not just vehicles of cultural or business innovation but also integral to how scientific discoveries are communicated and understood. In academic publishing, a well-crafted narrative can make complex ideas accessible, increase reader engagement, and enhance the impact of research findings.
Narratives as a Bridge Between Disciplines
A key insight is the flexibility of narratives across industries, nations, and organizations. This resonates with the interdisciplinary nature of modern research. Narratives can unify diverse fields—linking the abstract theories of the social sciences with the empirical rigor of natural sciences. This cross-pollination of ideas is vital for journals that cater to an international and multidisciplinary audience.
Ethical Dimensions of Narrative Crafting
The narratives we allow or reject as editors shape the intellectual capital of society. For instance, narratives that emphasize innovation and sustainability are crucial in addressing global challenges. As stewards of academic discourse, it is essential to ensure that narratives in publications align with ethical standards, foster transparency, and promote constructive dialogue.
Reflecting on the Narrative Flexibility in the Global Context
The discussion on narratives’ adaptability across nations and industries prompts critical questions for publishing: How do cultural and linguistic differences shape the reception of academic narratives? How can publishers ensure that narratives are inclusive and resonate globally? These questions are particularly pertinent in bridging research across nations with diverse economic and cultural backgrounds.
Leveraging Narratives for Greater Impact
Finally, the essay underscores a transformative opportunity: the ability of narratives to drive engagement and influence. Journals aim not only to publish findings but to craft narratives that inspire policy change, industrial innovation, and societal progress. This reflection challenges us to innovate in how we frame scientific discourse, ensuring it remains relevant and impactful.
Storytelling is important for all businesses, and even more so for SMEs trying to survive in a competitive market. The article effectively highlights that success in the tech sector is not just about technological advancements but also about how these advancements are communicated to the audience. This is a crucial takeaway for SMEs aiming to enhance their market presence.
I appreciate Denise Chua’s perspective on my article. As an assistant director at NUS (national university of Singapore), she insightfully underscores the vital role of storytelling in business strategy, especially for SMEs in competitive markets. Here prior experience in the service industry, like financial sector, speaks a volumne. Her statement aligns well with the LSE Business Review’s narrative focus, emphasizing that technological innovation alone is insufficient without effective communication. Indeed, she had had some interaction with SMEs in Singapore, Malaysia and in the rest of South East Asia, which I am familiar to some extend.
Her remark, “success in the tech sector is not just about technological advancements but also about how these advancements are communicated to the audience,” resonates deeply with SMEs striving to enhance visibility and establish credibility. This view suggests that strategic narratives can bridge the gap between technical capabilities and audience engagement, fostering both trust and competitive advantage.
Denise’s focus on communication reflects a broader understanding of how businesses, especially SMEs, can leverage storytelling to differentiate themselves, build a loyal customer base, and survive in dynamic markets. This perspective not only applies to tech but extends across various industries where narratives shape perceptions and drive decisions.
The importance of narratives and storytelling for success – in many industries, contexts, platforms – is well-established. What I found especially interesting in this article is its impact on ‘return on employees’. SMEs’ quest for legitimisation extends not just to customers and investors, but importantly to employees as well – and this article reminds us that effective storytelling plays a big part in staff retention, motivation and performance.
Contextualizing Narratives Across Regions and Cultures: A Student’s Reflection
As a university student from Chaoyang, a city in Liaoning province, my understanding of SMEs is limited, but I find the concept of narratives, particularly their abstraction or concreteness, both fascinating and relatable. Drawing from Professor Tariq H. Malik’s discussion in the LSE Business Review, I reflect on how narratives manifest in social and regional contexts within China and beyond. Professor Malik’s comparative analysis of North and South China in his earlier work (https://doi.org/10.1016/j.techfore.2018.04.027) resonates with me. I observe that South China, characterized by its bustling economy and dense urbanization, fosters more concrete narratives compared to the relatively abstract ones in the North. This aligns with the notion that environments shaped by commercial activity and higher interaction often demand practicality and specificity in their narratives.
In my hometown of Chaoyang, a smaller and less commercialized city, I notice narratives that tend to be more abstract and rooted in tradition and context. These contrasts are further magnified when comparing urban dwellers in larger, more developed cities, who often adopt a concrete style of communication, to those in smaller cities like mine. Professor Malik’s insights help me understand how regional disparities influence narrative preferences, shaping how people perceive and interact with the world. This difference, I believe, stems from varying levels of exposure to external influences, commercial systems, and cultural interactions.
Moreover, this dynamic extends beyond China, revealing cultural distinctions between China and Western countries. As Professor Malik highlights, Western societies often embrace more concrete narratives compared to the context-dependent and relationally driven narratives in China. This divergence reflects deeper cultural orientations—individualism versus collectivism, low-context versus high-context communication. These insights not only illuminate the narrative differences between regions but also enhance my understanding of how narratives are tools for navigating complex social and cultural systems. For students like me, such reflections pave the way for bridging theoretical knowledge with real-world observations.
My name is Yanting Wang, and sometimes I am Aliyah Tomb for social media, such as WeChat. I am a doctoral scholar at a leading Chinese university, studying economic history. I am motivated by the story telling argument made by Professor Tariq H. Malik in LSE Business Review magazine. I had never heard about this magazine until recently when this article was shared with me. I am an artist by heart. I play the guitar, I paint, and I travel. None of these activities can be fulfilled without narratives. Here is my share of the thoughts in relation to these activities for the comment section of this essay:
Economics
Economics is the poetry of choices, the brushstroke of markets on the canvas of society. Each policy is a narrative, shaping how wealth flows, how value is perceived, and how humanity sustains itself. As I delve into economic history, I find stories of innovation and struggle, prosperity and collapse—a tale spun through centuries, reflecting human resilience and folly.
Artist
To be an artist is to breathe life into the abstract, to give form to emotion. My soul speaks in colors and chords, merging the tangible with the ineffable. Every stroke of my brush, every strum of my guitar strings, is a narrative—a moment captured, a story whispered to the world. Art is my language, my refuge, and my rebellion.
Guitar
The guitar is a storyteller with six strings, each note a chapter, each chord a turning point. When my fingers dance on the frets, they summon emotions unspoken, weaving melodies that linger like echoes of memory. It is in these harmonies that I find the rhythm of my life, a symphony of joy, yearning, and discovery.
Painting
With each sweep of my brush, I create worlds unseen, capturing fragments of my imagination and heart. Painting is not merely an act; it is a dialogue with the canvas, where colors become voices and textures become feelings. Every piece I create tells a story of who I am and the world as I perceive it—a visual narrative of my soul.
Traveling
Traveling is the ultimate narrative, a journey where each step unveils a new chapter. From bustling cities to quiet landscapes, every destination becomes a character in my story, every experience a plot twist. To travel is to connect with the vastness of the world, to be both storyteller and listener in an endless tale of wonder and discovery.
As a professor at a Chinese university, I think of narratives slightly different way. Narratives are the essence of human interaction and understanding. They connect people, cultures, and decisions, weaving meaning into our actions and aspirations. Yet, their relevance extends beyond humans—they resonate with animals, as demonstrated by fascinating examples from the Inner Mongolia region of China, where cows produce more milk when music is played them. This simple “music narrative” relaxes the animals, reducing their stress levels and enhancing productivity. Such practices underline how narratives influence even non-human life forms by creating contexts of comfort and predictability.
But what about machines? Unlike humans or animals, machines do not inherently rely on narratives for function. They operate on logic, algorithms, and data—attributes devoid of emotion, context, or the cultural underpinnings that narratives provide. However, as artificial intelligence (AI) evolves, the line separating machines and humans is becoming increasingly blurred. AI systems are being designed not just to compute but to “understand” and “interact” in ways that mimic human intelligence.
In this convergence, the role of narratives becomes more intriguing. AI, while not organic or emotional, can process and generate narratives. This capability enables machines to interface with humans more seamlessly, offering customer support, storytelling, or even strategic business insights. For example, AI tools already craft personalized marketing narratives based on user data, bridging the gap between human cognition and machine learning.
The challenge lies in the partial humanity of AI. It does not have a lymphatic system, feelings, or a visceral experience of the world. Yet, it is increasingly equipped with mind-like attributes—thinking, memory, and the ability to “learn.” As AI progresses, will it require narratives not only to interact with humans but also to navigate its own simulated understanding of the world? Will it someday need its version of a “music narrative” to maintain efficiency or “mood”?
In business, these questions are critical. Narratives help us motivate teams, build brands, and engage consumers. As we integrate AI into these processes, how we craft and adapt narratives for hybrid human-machine systems will shape the future of industries. AI may not “feel” a narrative, but it could learn to construct and manipulate them to fulfill objectives—a prospect both exciting and challenging for businesses, ethics, and society.
The integration of AI into human ecosystems calls for a rethinking of narrative utility. Just as music transforms cow productivity, narratives may one day be instrumental in harmonizing the interactions between humans and intelligent machines. The narrative journey continues—ever relevant, ever adaptive, and ever expanding.
My English name is Jason, and I have worked at Liaoning University for 10 years. During this time, I was assigned to manage research funds for Professor Tariq H. Malik. Although I met him about two years ago, before I moved to another school in the natural sciences, he was at our university since 2017. It is then that he moved from Dalian (Surrey University) to Liaoning Business School.
Recently, I came across his article in the LSE Business Review after someone within the university shared it with me. Reading it provided a unique opportunity to reflect on the role of narratives in academia, as well as their adaptability and significance across disciplines. From my perspective, with my limited scope of the English language comprehension, I used the help of AI to translate and correct my presentation in which I want to say that narratives remain a vital element in professional activities, bridging gaps between social sciences in business schools and natural sciences like physics, despite the differences in context, style, stakeholders, and processes.
The essay’s assertion that narratives adapt to suit different institutional and cultural frameworks resonates deeply with my experience in a Sino-Foreign joint institutional setting. In such contexts, narratives do not merely communicate ideas but also mediate between diverse cultural and organizational expectations. For example, the transition from a business-focused academic environment to one centered on natural sciences involves a shift in narrative focus—from abstract theories of human behavior and economics to empirical, data-driven discourse. Yet, both fields rely on narratives to contextualize their findings and to persuade diverse audiences of their relevance and significance. This underscores the adaptability of narratives in bridging conceptual and disciplinary gaps.
However, while I largely concur with the essay’s insights, I adopt a critical eye toward its implicit assumption that narratives evolve uniformly across contexts. In practice, certain institutional environments may resist narrative shifts due to entrenched hierarchies or cultural rigidity. For instance, within natural sciences, narratives are often constrained by an emphasis on quantitative rigor, leaving less room for the kind of speculative, abstract storytelling more common in business schools. This rigidity can stifle innovation and limit the narrative’s ability to foster interdisciplinary connections. Therefore, while the essay admirably highlights the adaptability of narratives, it could benefit from a deeper exploration of the structural and cultural barriers that limit their evolution.
As an academic specializing in Economics and Finance, with a focus on spatial political economy and regional economics, I find the interplay between concrete and abstract narratives deeply significant in both research and teaching. These narratives serve distinct but complementary roles in advancing understanding and shaping policy, and this duality resonates strongly with the insights presented in the LSE Business Review article by Professor Tariq H. Malik, which explores the strategic flexibility of narratives across nations, industries, and firms.
Concrete Narratives are indispensable in grounding theoretical concepts within observable realities. For instance, in teaching regional economics, I often use case studies of specific provinces or cities in China to illustrate how targeted policies, such as those within special economic zones, can stimulate regional development. Concrete narratives draw on empirical data—GDP growth rates, trade volumes, or infrastructure investment figures—to create a vivid picture of economic phenomena. Similarly, in spatial political economy, localized examples of industrial clustering or urbanization provide tangible insights into broader economic dynamics.
In contrast, Abstract Narratives offer the theoretical frameworks that underpin these localized stories. They encompass principles like agglomeration economies, theories of regional competitiveness, or broader models of political-economic interaction. These narratives enable us to generalize findings and draw parallels across contexts, extending the relevance of specific case studies to global patterns or trends.
Professor Tariq H. Malik’s article in the LSE Business Review highlights the pivotal role narratives play along the spectrum from concrete to abstract. His argument—that narratives must adapt to resonate with diverse audiences—aligns closely with the challenges we face in economic research and policy communication. For example, while abstract narratives of spatial economic theory might provide a conceptual basis, policymakers and stakeholders often respond more effectively to concrete narratives that reflect localized success stories, such as China’s Belt and Road Initiative or the transformation of specific industrial zones.
By contextualizing Malik’s insights within my research and teaching, I recognize the power of aligning abstract and concrete narratives to bridge the gap between theory and practice. Whether explaining the economic implications of policy decisions or exploring regional disparities, the strategic use of narrative, as highlighted in the LSE Business Review, is a crucial tool for making complex ideas both comprehensible and actionable.
This dual approach not only enriches academic inquiry but also ensures that research findings effectively inform real-world decision-making. Professor Malik’s work serves as a valuable reminder of the narrative’s centrality in shaping perceptions, fostering understanding, and driving meaningful change in the realms of economics and beyond.
Having studied international business with a major in marketing at Birmingham University, I observed firsthand the rigorous demands of a one-year master’s program. The structure, characterized by compressed timelines and a heavy emphasis on technical proficiency, left limited room for narratives to influence academic success. Technical skills, such as quantitative analysis and rapid project execution, were paramount, often overshadowing the deeper, process-driven meaning that narratives might provide.
Professor Tariq H. Malik’s essay in the LSE Business Review explores the flexibility and utility of narratives across varying contexts. While his argument is compelling, my academic experience suggests that the applicability of narratives is conditional rather than universal. In environments where time is a critical constraint, narratives may be perceived as a luxury—an indulgence in interpretation that detracts from immediate, tangible outcomes.
This perspective was particularly evident among many Asian students in the program, who prioritized speed and results. Their approach, where “the faster the winner,” reflects a broader cultural and practical emphasis on efficiency. Here, narratives that emphasize meaning and process may hold less value, as the context demands action over reflection.
However, this does not imply that narratives are irrelevant. On the contrary, their importance may lie in framing long-term strategies and understanding cultural dynamics, rather than in facilitating day-to-day technical tasks. Malik’s essay could benefit from acknowledging these conditionalities—specifically, how the relevance of narratives fluctuates depending on the temporal and operational constraints of the context.
Henan’s Agricultural SMEs and Narratives in the LSE Business Review: A Contextualized Perspective
Henan Province is often regarded as the agricultural heart of China, and its Small and Medium Enterprises (SMEs) in the agricultural sector form the backbone of this identity. SMEs in Henan play a pivotal role in bridging traditional farming practices with modern technological innovations, enabling the province to meet national food security goals while also competing in global markets. The LSE Business Review’s exploration of narratives, particularly in understanding the dynamic interplay between abstract and concrete contexts, provides a valuable framework for examining how Henan’s agricultural SMEs position themselves within regional, national, and international ecosystems.
Henan’s Agricultural SMEs: Pillars of Regional Development
Henan’s SMEs in agriculture are diverse, encompassing family-owned farms, agro-processing units, machinery manufacturers, and technology-driven startups focused on sustainable farming. These enterprises are vital in sustaining rural livelihoods and promoting technological adoption across the agricultural value chain. For example:
Agro-Processing SMEs add value to raw agricultural products like wheat and maize by producing flour, packaged foods, and beverages.
Machinery SMEs manufacture essential equipment such as tractors and irrigation systems, improving productivity for small-scale farmers.
Technology-Driven Startups integrate AI, IoT, and big data to optimize resource management and yield prediction.
These SMEs embody Henan’s agricultural narrative of transformation, balancing its historical identity as the “granary of China” with modern ambitions to become an innovation-driven agricultural hub.
Connecting SMEs to Narratives in the LSE Business Review
The LSE Business Review emphasizes the importance of narratives in navigating the concrete-abstract spectrum, which is highly relevant to Henan’s agricultural SMEs. These enterprises operate in a space where tangible outputs (e.g., food production and machinery) intersect with intangible factors such as branding, policy influence, and global trade dynamics. Several key narrative dimensions link Henan’s SMEs to the insights provided in the review:
From Traditional to Modern: Narratives of Transition The narrative of Henan’s agricultural SMEs centers on a transition from tradition to modernity. This reflects the LSE Business Review’s idea that narratives can bridge concrete realities (traditional farming) with abstract visions (sustainability and innovation). SMEs that emphasize their ability to modernize while preserving local traditions resonate strongly with both domestic and international stakeholders. For instance:
Family-owned SMEs that adopt eco-friendly practices while maintaining traditional farming methods position themselves as stewards of cultural heritage.
Agro-processing SMEs with certifications for organic or sustainable production leverage these narratives to access premium markets.
Global-Local Tensions: Narratives of Localization The LSE Business Review highlights the flexibility of narratives across scales. Henan’s agricultural SMEs must navigate global-local tensions by crafting narratives that align with local realities while appealing to global markets. For example:
SMEs producing specialized products like millet wine or regional snacks emphasize Henan’s rich cultural heritage to differentiate themselves in international markets.
Machinery manufacturers use narratives of affordability and customization to compete with global players, tailoring products to the needs of smallholder farmers in developing countries.
Innovative Storytelling: Narratives of Disruption The LSE Business Review discusses how narratives can disrupt established norms. Henan’s tech-driven agricultural startups exemplify this, using innovation-centric narratives to position themselves as disruptors in the traditional agricultural landscape. By integrating technologies such as blockchain for supply chain transparency or AI for precision farming, these SMEs create compelling narratives about reshaping agriculture for the future.
Policy and Institutional Narratives Supporting SMEs
Henan’s provincial government and academic institutions, such as Zhengzhou University, play a critical role in shaping and amplifying narratives that support agricultural SMEs. Key initiatives include:
Agri-Tech Hubs: Policies that encourage SME participation in research clusters and innovation hubs help align provincial development goals with entrepreneurial narratives of technological leadership.
Rural Revitalization Campaigns: Henan’s efforts to integrate SMEs into rural revitalization narratives highlight their importance in reducing rural-urban inequalities and promoting inclusive growth.
Export-Focused Strategies: SMEs are supported in crafting export-oriented narratives, leveraging Henan’s central location as a logistical hub within the Belt and Road Initiative (BRI).
Challenges in Crafting Narratives
Despite their potential, many of Henan’s agricultural SMEs face challenges in articulating and sustaining compelling narratives:
Limited Branding Expertise: Many SMEs struggle to transition from being low-cost producers to brand-driven enterprises.
Global Market Access: While narratives of sustainability and innovation are powerful, Henan’s SMEs must navigate complex trade barriers and competitive markets.
Policy Coherence: Aligning local SME narratives with broader provincial and national goals requires careful coordination and sustained institutional support.
Conclusion: Narratives as Drivers of Growth
Henan’s agricultural SMEs are not just contributors to the province’s economy but active agents in crafting and sustaining its evolving narrative. Drawing from insights in the LSE Business Review, these SMEs can leverage the flexibility and transformative power of narratives to navigate their concrete contributions and abstract aspirations. Whether through modernizing traditional practices, integrating global-local dynamics, or embracing disruptive innovation, Henan’s SMEs exemplify how narratives can shape and sustain competitive advantage in a rapidly changing world.
Zhengzhou University, as a key academic institution, plays a vital role in researching and disseminating these narratives, ensuring that Henan’s agricultural SMEs remain central to China’s food security, rural revitalization, and global economic integration. By aligning academic insights with practical applications, the university helps SMEs craft narratives that resonate across scales, transforming challenges into opportunities for growth and recognition.
KEYNOTE SPEECH
I was invited as a Keynote Speaker at an AI and Digital Technology conference, hosted by Zhengzhou University and Sheffield University in Henan, China. My keynote, titled “Institutional Sclerosis of the Chinese Semiconductor Industry (CSI)”, explored the critical intersection of intellectual capital, sectoral institutions, and industrial development. The narrative emphasized how the balance—or imbalance—between concrete manufacturing capabilities and abstract intellectual pursuits shapes the trajectory of industrial growth and innovation in China’s semiconductor industry.
During my speech, I concretized the concepts of institutions as “collective thinking (two or more people)” and sclerosis as a “traffic jam.” This analogy resonated with the audience, simplifying complex institutional dynamics into relatable terms. Ultimately, I conveyed the core idea that institutional sclerosis can occur when we gravitate too far toward one end of the spectrum, either focusing predominantly on Science (science, technology, engineering, and mathematics) or Arts (social sciences, arts, humanities). This imbalance limits the synergy needed for holistic progress.
Drawing parallels with my earlier work on narratives in technology businesses as presented in the LSE Business Review, I analyzed the concept of “institutional sclerosis”—a condition where rigid institutional frameworks hinder adaptability and innovation. In this context, narratives play a crucial role, oscillating between concreteness (manufacturing efficiency) and abstractness (creativity and intellectual capital). For instance:
Errors of Omission and Commission: These systemic errors in institutions, whether in neglecting “fabless” design firms or overemphasizing “fab” manufacturing, reflect an imbalance between abstract and concrete thinking systems. Such imbalances influence not only industrial policies but also the legitimacy and global perception of firms.
Abstract Narratives as Legitimacy Drivers: While China’s prowess in manufacturing (concrete institutions) remains globally recognized, its underinvestment in disciplines like the arts, humanities, and social sciences undermines the development of abstract narratives. These narratives are essential for building legitimacy, prestige, and a competitive edge in global markets.
Clustered Sentiments and Firm Dynamics: My keynote highlighted that younger firms in China tend to embody abstract and forward-thinking sentiments, whereas older firms are often anchored in past achievements and concrete processes. This duality is central to understanding how narratives shape the industrial landscape over time.
Paradoxes of Talent and Collaboration: The geopolitical constraints on academic and industrial collaboration, particularly between the US and China, further underscore the need for narrative-driven strategies that transcend political divides. Restrictions on Chinese students and scientists in the US, for example, disrupt innovation flows, offering opportunities for narrative reimagining within China’s institutional ecosystem.
The insights from the conference align with my LSE Business Review article’s assertion that narratives are not merely storytelling tools but structural frameworks that drive sectoral legitimacy, innovation, and international collaboration. By embedding narratives within industrial strategies, China has the potential to address institutional sclerosis, leverage its intellectual capital, and achieve a balanced, sustainable growth model.
Thank you for your insightful sharing. Your understanding of Chinese business operation models is truly profound, and it’s evident that you have a deep grasp of the nuances that characterize the Chinese corporate landscape. I appreciate how you’ve highlighted the importance of rhetorical skills in legitimizing businesses, especially among small and medium-sized enterprises in the tech sector, where agility and the ability to adapt narratives to market demands are critical.
The challenge in quantifying expressive abilities lies in capturing the qualitative essence of communication and leadership, which often involves non-verbal cues, emotional intelligence, and the ability to inspire and motivate others. These elements can be harder to measure than more tangible business metrics, but they are no less important. Techniques such as natural language processing and sentiment analysis, along with survey data, could be employed to assess the impact of an entrepreneur’s communication style on their team, stakeholders, and the public.
An empirical study in this area could contribute significantly to our understanding of how entrepreneurs’ communicative competencies influence firm performance, employee engagement, and stakeholder relationships. It would also provide valuable insights into the development of training programs and support systems that enhance these vital skills, ultimately fostering a more dynamic and resilient business environment.
Once again, thank you for bringing up this thought-provoking topic. I look forward to seeing more research in this area, and I’m sure your expertise will continue to shed light on the unique characteristics of Chinese entrepreneurship.
Very interesting
I understand that the power of narrative is integral not only to the stories we publish but also to establishing our legitimacy within the industry. Contextualizing this within the concept of legitimacy reveals the internal mechanisms that drive our survival and growth. Insights from the LSE Business Review further illuminate how narratives and legitimacy interplay to support small publishers like us.
The Concept of Legitimacy in Publishing
Legitimacy refers to the general perception that an organization’s actions are desirable, proper, or appropriate within a socially constructed system of norms and values. For small publishers, achieving legitimacy is crucial for gaining the trust of authors, readers, and industry stakeholders. It validates our role in the literary ecosystem and paves the way for sustainable growth.
Narrative as a Tool for Building Legitimacy
The LSE Business Review emphasizes that narratives are powerful instruments in constructing organizational legitimacy. Here’s how we leverage narrative internally to build legitimacy:
Establishing a Clear Mission and Vision
Internal Mechanism: We craft a compelling organizational story that outlines our mission to publish unique and impactful literature. This narrative aligns our team’s efforts and communicates our purpose to the external world.
Legitimacy Outcome: A clear mission enhances our credibility and signals to stakeholders that we are committed to contributing meaningfully to the literary landscape.
Curating Quality Content
Internal Mechanism: We implement rigorous editorial standards and select works that reflect our values and resonate with our target audience.
Legitimacy Outcome: By consistently delivering high-quality publications, we build a reputation for excellence, reinforcing our legitimacy in the eyes of readers and authors.
Building Authentic Relationships with Authors
Internal Mechanism: We engage with authors who share our vision, fostering collaborative relationships that prioritize storytelling and innovation.
Legitimacy Outcome: These partnerships enhance our portfolio’s authenticity and attract other talented writers, solidifying our standing in the publishing community.
Engaging with Our Audience
Internal Mechanism: We create platforms for reader interaction, such as book clubs, social media discussions, and literary events.
Legitimacy Outcome: Active engagement builds a loyal community around our brand, demonstrating our commitment to readers and enhancing our social legitimacy.
Insights from the LSE Business Review
The LSE Business Review provides valuable perspectives on how narratives contribute to organizational legitimacy:
Narratives Shape Perceptions: They argue that the stories organizations tell about themselves influence how they are perceived. For us, sharing success stories, author journeys, and our impact on readers helps shape a positive public image.
Adaptation and Innovation: The Review highlights the importance of adapting narratives to changing societal norms. We stay attuned to cultural shifts and incorporate relevant themes into our publications, ensuring our offerings remain legitimate and appealing.
Transparency and Accountability: Maintaining openness about our processes and decisions builds trust. By sharing our editorial choices and business practices transparently, we align with ethical standards that stakeholders expect.
Internal Mechanisms Enhancing Legitimacy
Organizational Culture Development
We cultivate a culture that values creativity, diversity, and integrity. This internal environment reflects outwardly, attracting like-minded individuals and organizations.
Strategic Communication
Our marketing and communication strategies are crafted to tell our brand’s story effectively. We utilize various channels to reach our audience, ensuring consistency in our messaging.
Continuous Learning and Improvement
We invest in professional development and stay updated on industry trends. This commitment to growth enhances our capability to produce relevant and legitimate content.
The Impact on Survival and Growth
By focusing on narratives that build legitimacy, we experience several benefits:
Increased Trust and Credibility: Stakeholders are more likely to support and invest in publishers they perceive as legitimate.
Competitive Advantage: Legitimacy differentiates us from competitors, particularly larger publishers that may lack the personal touch we offer.
Sustainable Relationships: Strong narratives foster lasting relationships with authors and readers, leading to repeat business and referrals.
Conclusion
Embracing the power of narrative within the framework of legitimacy is essential for our small publishing business’s survival and growth. The internal mechanisms we implement—ranging from organizational culture to strategic communication—are designed to reinforce our legitimacy continually. Insights from the LSE Business Review validate this approach, highlighting that narratives are not just stories but foundational elements that shape perceptions and realities.
By prioritizing narratives that resonate with societal values and by demonstrating our commitment to quality and authenticity, we position ourselves as a legitimate and indispensable part of the publishing industry. This strategy not only secures our current operations but also lays the groundwork for future expansion and success.
I reside in Cape Town, South Africa. I have known Tariq since our teenage years in the Middle East. While many of us settled into work and family life, Tariq never abandoned his pursuit of learning and education. He was always different among us, often maintaining a certain distance during jokes and small talk when we gathered with friends like the several Maliks—some of whom claimed to be his uncles. Later in life, I realized that Tariq was chasing big ideas. In the early 1990s, Tariq left the Middle East and never returned, while I moved to South Africa to work with an embassy. Now, as I spend my time on hobbies, I have rediscovered Tariq through an article in the LSE Business Review. It seems he has been reappeared, this time on the internet, after a long absence (thirty years).
Because I am not familiar with SMEs functions in the high technology sectors, I use the context of embassies in making the point on narratives. In diplomatic missions like embassies, narratives are essential tools for shaping international relations and perceptions. Concrete narratives—specific stories and tangible examples—differ from abstract narratives that focus on general ideas or ideologies. For instance, Gulf countries often use concrete narratives highlighting their rapid development and infrastructural achievements to influence global opinion. In contrast, European nations might employ abstract narratives centered on democracy and human rights, while Asian countries could focus on collective cultural heritage or economic philosophies. Understanding these narrative differences is crucial for diplomatic entities to effectively communicate their nation’s values and objectives on the global stage.
I am a Reader at WBS in London, and I am familiar with the author. I indulge into a brief take on how narratives are to my passion and profession.
Narratives as Strategic Anchors in Entrepreneurship
As an academic entrepreneur, I find Tariq’s essay deeply resonant, particularly his assertion that “wrong narratives can lead to miscalculations towards destined failure.” My experiences in creating small entities—both within the academic realm and beyond—have shown me that while innovation is critical, the stories we craft about our ventures are equally so. Narratives act as strategic anchors, guiding decision-making and shaping perceptions both within and outside the organization. Entrepreneurs often risk overemphasizing aspirational narratives without ensuring their alignment with operational realities, which, as Tariq highlights, can be disastrous. His essay is a poignant reminder of the need for complementary narratives that balance inspiration with grounded execution.
The Art of Contextual Bricolage
One of the most memorable discussions I had with Tariq was during his visit to London. In our conversation, he elaborated on the idea of bricolage, a concept he explores in his essay and other works. “What, when, where, how, and who make the context,” he said, “and the combination of at least two of them becomes a contextual bricolage.” Intrigued, I told him, “You are like Italians…” He laughed and asked, “What do Italians do?” I replied, “Italians are famous for making an innovative idea out of simple and minute things.” With a knowing smile, he said, “That is a good narrative.” This exchange exemplifies his ability to draw profound insights from simple concepts, turning them into powerful frameworks for understanding how narratives emerge and influence behavior. I find that these ideas are particularly relevant to the small entities I have created, where narratives often begin as modest, fragmented stories but evolve into cohesive, strategic visions.
Bridging Narratives Across Borders and Disciplines
Tariq’s essay also underscores the adaptability of narratives across cultural and disciplinary boundaries. Having met him in diverse settings, I have seen how his narrative-driven approach transcends geographical and contextual differences. He often says, “A narrative must evolve with its context, or it risks becoming obsolete.” This idea resonates strongly with his essay, which highlights the fluid nature of narratives as tools for navigating change and uncertainty. For me, his work bridges the gap between academic theory and entrepreneurial practice, offering a compelling perspective on the role of storytelling in entrepreneurship. Tariq’s essay is not only an intellectual exploration but also an inspiring call to refine and adapt our narratives to thrive in an ever-changing world. My own ventures, whether in academia or the entrepreneurial sphere, have shown me the power of this adaptability in crafting narratives that resonate across diverse audiences and contexts.
I am Kang Zheng, a founding partner at BEIJING GUANG SHENG LAW FIRM. I deeply resonate with the role of narratives in professional settings. While practicing law and pursuing my MBA at the Chinese University of Political Science and Law, I have observed firsthand how narratives are central to dealing with diverse client expectations and contexts. Narratives serve as essential tools for understanding variations in clientele, crafting tailored legal solutions, and building trust.
This aligns with Professor Tariq H. Malik’s insights on how narratives function across industries to address complexity and foster connection, particularly in dynamic and cross-cultural environments. While his study represents high technology SMEs, I see a significant overlap in knowledge based (service firms) industries. In legal and consultancy work, narratives not only facilitate communication but also enhance the ability to decode clients’ unique circumstances, enabling effective and sustainable solutions.”
Moreover, narratives can be seen as a form of ‘technology’ for business success. Just as technology streamlines processes and drives innovation, narratives provide a framework to interpret challenges, create meaning, and influence decision-making. In our firm, we leverage narratives to articulate strategic visions, align stakeholders, and position ourselves effectively in competitive markets. This narrative-driven approach enables businesses, including ours, to adapt, innovate, and thrive amidst uncertainty.
Indeed, narratives change shape when we deal with small versus large clientele, domestic versus international clientele and private versus industrial clientele.
I am a professor in Big Data Management in China, focusing on integrating NLP models to inform academia and transform applications across various fields such as Information, Production and Systems, Big Data Legal Supervision, and AI+Digital Marketing. I speculate that this expertise might be relevant to understanding and shaping narratives in the context of emerging technologies.
The narrative issues raised in the LSE Business Review, particularly regarding how firms and industries employ storytelling to navigate the abstract-concrete spectrum and address global audiences, align closely with the challenges and opportunities presented by big data and AI. My work involves designing systems that extract meaningful patterns from complex datasets, which can contribute to constructing effective narratives in business and society. For instance, NLP models can identify recurring themes, sentiments, and cultural nuances, aiding in the creation of coherent and impactful stories. This can empower organizations to articulate their vision, justify their strategies, and engage diverse stakeholders, echoing the critical role of narratives in framing policy and technological adoption highlighted in the review.
Storytelling is a core competitiveness, and don’t fall into the “spiral of silence”.
1. Storytelling can be a powerful tool for businesses, which is especially valuable in supporting technology and innovation progress of Chinese tech enterprises. In today’s rapidly changing world, stories make it easier for the demand side to understand complex themes, touch their emotions, and therefore reduce information asymmetry between businesses and various external entities.
2. Storytelling is far from a persuasive trick, because it is human nature to enjoy listening to stories. As explained by Kelly McGonigal, a psychology professor at Stanford University, listening to stories is more effective in activating various parts of the brain than watching slides filled with data. For example, when we hear someone playing soccer, our motor cortex is activated. Similarly, in business practice, if an ICT enterprise talks about how to use its latest technology to achieve intelligent parking in narrow parking spaces, this scenario will come to mind and generates more trust from listeners.
3. A more serious issue is that in the face of fierce market competition, Chinese enterprises should enhance the ability to demonstrate their technological advantages and compliance management to the outside world, in order to adapt to international and domestic competition rules and regulatory scrutinies.
4. Chinese tech enterprises should avoid the “spiral of silence”. Storytelling is also an art. Being humble and low-key is traditional Chinese virtue, so most Chinese enterprises are good at stating facts in narrative logic, but not good at gaining others’ understanding and support through captivating stories. They need to show their technological progress and compliant operation by telling good stories.
5. In sum, storytelling is not only the weakest link of Chinese enterprises in the process of implementing the Belt and Road Initiative, but also the consensus that government officials and entrepreneurs should achieve in the process of building world-class tech enterprises in China.
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I met Professor Tariq in Beijing at CUFE at a conference, and his research is cutting-edge and interdisciplinary, and we have formed a collaborative relationship in various fields in our complementary interests.
Lifang Hu
Lifang Hu is an associate professor of applied economics at Business School, China University of Political Science and Law (CUPL). She received her Ph.D. degree from Renmin University of China, and she has been a visiting scholar at University of Connecticut. She has been recognized as a top young talent from CUPL. She focuses mainly on policy study and regional development, and her research has been published in international and Chinese leading academic journals. She is the leader of various projects supported by the National Social Science Fund, the Ministry of Education of China, the Ministry of Finance of China, etc., and the research topics involves China’s urban-rural development and multiple reforms.
Very insightful thoughts, thank you. You are welcome to talk about cases and examples in the Symposium on World Economics, Finance and Business, which will be held during Aug.20-22, 2025 in Hyatt Regency Tokyo, Japan.
Working in the international office of a Chinese university offers a unique vantage point into the dynamic interplay of narratives in fostering cross-cultural connections. Engaging with foreign students, scholars, and institutions reveals how deeply narratives shape perceptions, expectations, and relationships. When foreign dignitaries visit our university, we witness firsthand how their stories about their nations’ academic traditions, societal values, and cultural heritage set the tone for collaboration. Similarly, we craft narratives that highlight our university’s strengths in education, research, and innovation, positioning it as a hub for international partnership. These narratives transcend mere words; they become the foundation for trust, mutual understanding, and meaningful collaboration across borders.
The role of narrative becomes even more pronounced when we travel abroad to represent our university. In these contexts, we are not just presenting facts or numbers; we are telling stories about who we are, the values we uphold, and the shared goals we aspire to achieve with our international counterparts. These stories often serve as bridges, helping us navigate cultural differences and forge connections that might otherwise be challenging to establish. Whether it’s articulating the significance of a joint research initiative or narrating the personal journeys of international students thriving on our campus, these narratives carry the weight of authenticity and aspiration. They illuminate the shared humanity behind institutional agreements and academic exchanges, making narrative an indispensable tool in the global engagement efforts of our university.
The LSE Business Review article on narratives provides a compelling perspective on the interplay between China’s micro and macroeconomic contexts, emphasizing their alignment with concrete economic models, practical thinking, and a trade-oriented mindset. This analytical approach resonates with China’s broader economic philosophy, which tends to favor structured, goal-driven development over speculative abstraction. Historically, Chinese business narratives have been deeply embedded in pragmatic decision-making, efficiency, and measurable progress, reflecting a preference for tangible, outcome-based frameworks. Such an orientation is visible in China’s industrial policies, corporate strategies, and global trade initiatives, which prioritize infrastructure, supply chain dominance, and long-term economic sustainability. The article’s emphasis on these characteristics helps demystify how Chinese firms approach international expansion, emphasizing their reliance on structured, incremental strategies rather than abstract theorization.
For an international audience, a discussion on the contrast between concrete and abstract narratives in Chinese thinking would be particularly insightful, especially as China’s global business presence continues to expand. Many Western economies often incorporate abstract, principle-driven narratives into their economic discourse, where conceptual frameworks and long-term projections shape decision-making. In contrast, Chinese businesses typically operate within an adaptive, pragmatic paradigm, where economic activities are deeply contextualized and tied to immediate, practical outcomes. This distinction is crucial for China’s trade partners and host countries, as it enables a deeper understanding of how Chinese firms negotiate, adapt, and integrate into foreign markets. Highlighting this contrast in the article would not only clarify China’s economic behavior but also foster more effective cross-cultural collaboration by helping international stakeholders engage with Chinese enterprises on more aligned terms.
We had the privilege of hosting the author of the Narrative Discourse featured in the LSE Business Review, and we found the discussion deeply resonant with our experiences. The depth and breadth of the discourse illuminated how narratives shape not only industries but also the perceptions and expectations within them. As a result, we felt compelled to contribute this note to the ongoing conversation, recognizing the profound impact of storytelling in our own business landscape. The dialogue reinforced how narratives are not just abstract constructs but tangible forces that influence customer engagement, branding, and service delivery.
As a service industry enterprise based in Batam, Indonesia, our entire business identity is woven into narratives—whether through the emotions we evoke, the catering experiences we design, the scenes we craft, or the social positions we cater to. Every aspect of our operations is a story in itself, influencing how customers perceive and interact with our brand. From the ambiance we create to the personal touch in our services, narratives define the connections we establish with our clientele. This realization aligns seamlessly with the insights from the LSE Business Review, affirming that narratives are not just tools of communication but fundamental drivers of business success.