Authenticity and high performance: Nonmarket social, public and media strategies of foreign SMEs during a black swan event

Abstract

Nonmarket (NM) strategy is an emerging concept, similar to the notion of NM social, public and media strategy (SPMS). Previous literature has predominantly focused on larger corporations, often overlooking smaller enterprises. Additionally, much of the existing research has been centred on developed markets, leaving a gap in qualitative research. The current analysis seeks to elucidate how foreign small and medium-sized enterprises (FSMEs) in transitional markets, such as Shanghai, adopt specific NM SPMS to mitigate the liability of foreignness (LOF) during a pandemic. The study utilizes a CGT approach, employing semi-structured interviews with 27 participants, including foreign entrepreneurs and digital marketing specialists. Additionally, qualitative data was analysed comprehensively using Atlas.ti 9 software. The qualitative methodology implementation resulted in the creation of the authenticity and high performance framework from where specific strategies and general implications are presented. The study highlights two principal themes: (1) The need for increased flexibility and speed in social media message communication and (2) Customized FSME strategies through digital marketing—a never-going-back market digitalization. The second theme is subdivided into (a) Tailored public relations for FSMEs. (b) An increased need for internal cohesion—fostering a stable mindset and positive rapport among staff. (c) An increased need for trialling new target customers. (d) Creating a relatable story—showing a particular vulnerability can be viral and (e) Maintaining a strong reputation for operational performance.