Social Embeddedness and Resource Orchestration as Drivers of New Entrants’ Market Entry and Growth in High-Barrier Markets: A Case Study of a Logistics Company in China

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Background and Aims: This study elucidates the mechanisms through which new entrants in mature markets encounter structural barriers, demonstrating the synergistic effects of social embeddedness and resource orchestration. It addresses how firms can undertake strategic transformations while simultaneously orchestrating resources. Methodology: Based on a longitudinal case study, this research examines the entry process of a multinational logistics enterprise into China's highly regulated market, which is dominated by incumbent firms. Qualitative research methods were employed, including in-depth interviews, archival documentation, and field observations. Results: Research indicates that social embeddedness manifests as the stable network of relationships established by enterprises, while resource orchestration is reflected in management's utilisation of internal and external resources. Enterprises first secure legitimacy and resource channels through social embeddedness, subsequently implement cross-stage resource orchestration, and ultimately achieve market breakthroughs. Conclusion: This study constructs a five-stage model, clarifying the pathway of this mechanism under conditions of high institutional complexity and significant incumbent advantage. This provides new theoretical perspectives and practical insights for understanding the growth of new entrants in high-barrier markets.

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Related topics: Outsourcing and Supply Chain Management · International Business and FDI · Quality and Supply Management