Moral Embeddings of Trade Relations between Nigerian and Chinese SMEs: Implications for Firm Internationalization

Unreported internationalisation relations between small and medium enterprises (SMEs) in Nigeria and China have increased significantly in the recent time. This has received further boost by the greater than ever favourable trading understanding between the two countries, and in particular the recent China's Policy on Africa. Amidst this development is the emergence of grey market in Nigeria where imitation, counterfeit, fake, and sub-standard goods from mainly China are sold. The depth and vibrancy of this emerging market can potentially be challenged by the increasing unethical framework that supports the existing relationship. Using this as a point of departure, this paper among others examines the Nigerian SMEs' perception of the obvious morality questions that frame the subsisting trade relations with their Chinese counterpart. The study utilises direct participation method to extract relevant information. Part of the major conclusions from the study is that ethical behaviour for both countries appears peripheral and rhetorical. Accordingly, SMEs in Nigeria do not consider the importation of counterfeit product from China as unethical. Instead they consider their roles as invaluable value chain function that makes available to the largely Nigerian poor consumers international brands at affordable price. Nigerian consumers somewhat collaborate this thinking. However, most Nigerian consumers now interpret Made-in-China label as inferior. Arguably, this has serious long term implications for Made-in-China brands. Policy and management implications are discussed.