Institutional entrepreneurship in the informal economy: China's shan-zhai mobile phones

Abstract

During the last decade, Chinese shan-zhai mobile phones have steadily and deliberately evolved from an informal economy to a formal one. We draw on institutional entrepreneurship to study this evolution, focusing in particular on how informal Chinese entrepreneurs pursued change and the transition to a formal economy. We emphasize three strategies-framing, aggregating, and bridging-Chinese entrepreneurs employed to mobilize support, garner resources, and increase their amount and level of legitimacy. We also discuss implications for research on informal economies and institutional entrepreneurship. © 2014 Strategic Management Society.