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This article examines the influence of Daoist nothingness on leadership in growing Chinese small and medium enterprises (SMEs). Daoism is based on a “letting-go” approach through maintaining inherent openness, which challenges goal-oriented and hierarchical approaches typical of Western and Confucian leadership theories. This facilitates the cross-fertilization of ideas related to the effective management of smaller firms.

This study focuses on SME leaders in a group of 12 growing SMEs in the Shanghai logistics industry in China. Narrative and semi-structured interviews explored emerging aspects beyond the established model of leadership associated with reputation-building. This led to in-depth, thick descriptions, broadening our understanding of leadership and reputation-building.

SME leaders follow nothingness by continuously adopting a letting-go approach which spontaneously fosters reputation-building. By maintaining inherent openness, nothingness functions as an enabling principle that mobilizes multi-beings leading to reputation-building in unintended ways.

A greater plurality of empirical and methodological contexts in Western and non-Western countries helps to understand the dynamics and intersection of Daoist nothingness, leadership and reputation-building.

SME leaders recounted how they discursively practised nothingness for extended periods in their everyday practice. The study shows the significance of nothingness for SME leaders who aspire to grow their businesses by reputation-building among salient stakeholders.

Daoist nothingness provides insights into the distinctive approach of Chinese SME leaders and their relationships with local and distant stakeholders. By engaging in active non-action they relax pre-determined intentions and immerse themselves in the process of leading, where the connections between goals and processes are automatically animated. Such an approach differs from the top-down and goal-oriented approach to leadership adopted in many Western SMEs.

This paper makes two theoretical contributions. First, it indicates the powerful influence of Daoist nothingness on leadership by drawing on the broader context of entrepreneurship in Chinese SMEs. Secondly, it enriches existing concepts such as reputation by endowment and reputation borrowing by demonstrating how Daoist nothingness silently fosters both local reputation and generalized reputation.

Small and medium‐sized firms (SMFs) can make valuable economic and social contributions through their distinctive capabilities for innovation. However, SMFs rarely possess adequate R&D resources and are therefore dependent upon external technological information. We believe that collaboration between higher education institutions (HEIs) and SMFs has considerable potential for strengthening innovatory activity in the UK. However, very little detailed information is available about the process of technology transfer from the perspectives of HEIs and SMFs. This paper examines ways in which HEIs establish links with SMFs as a means of commercializing their scientific and technological research. A questionnaire was used to obtain data from 37 HEIs on technological alliances with SMFs. In addition, a number of interviews were carried out with individuals responsible for marketing HEI science and technology.