This study profiles new Mainland Chinese entrepreneurs and their enterprises as well as explores the cultural and family forces shaping small‐ and medium‐size enterprise development. The study uncovers entrepreneurial motives, demographic attributes, and the type of businesses being established. Family and enterprise relationships relating to financial investment and employment are also presented. The majority of enterprises were found to be closely held small businesses focused on the retail and technology sectors. The findings suggest that entrepreneurs are motivated by the need for independent‐based achievement and continuous learning around a family focus. Family played an active role in enterprise formation and development in China. Entrepreneurs were found to rely on family members both to establish and develop their enterprises. The majority of the entrepreneurs surveyed employed at least one family member on a full‐time basis. Entrepreneurs were also found to use family finances as the primary source of start‐up capital.

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Purpose With the increasingly collaborative nature of innovation and the expanding role of digital platforms on inter-firm collaboration, the purpose of this paper is to investigate the impacts of digital platforms on collaborative innovation capability (CIC) under conditions of two distinctive governance mechanisms. Furthermore, the competitive benefits of CIC at different levels of environmental uncertainty are examined to clarify the performance of collaborative innovation. Design/methodology/approach The research model is proposed based on dynamic capabilities theory, information technology (IT)-enabled organizational capability and governance mechanisms literature, and then validated by using partial least squares with data collected from 200 Chinese firms that engage in digital collaboration with their major channel distributors. Findings Empirical results show that the enabling effect of digital platforms capability on CIC is positively moderated by relational governance while negatively moderated by formal governance, and both governance mechanisms directly and positively influence CIC; the positive relationship between CIC and competitive performance is stronger for higher level of environmental uncertainty; and CIC is the key mediator converting digital platforms capability into competitive performance. Originality/value This study enriches the existing literatures in IT-innovation relationship by not only surfacing the interplay of digital platforms capability with two distinctive governance mechanisms in building CIC, but also clarifying the competitive benefits of CIC in an uncertain environment. Moreover, this study helps explain the controversial issue of the business value of IT capability by discovering the mediating role of CIC.

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