Constructing Global Business Networks in China

Abstract

This article explains the issue of business networking for foreign multinational enterprises (MNEs) operating in China from various perspectives (including cultural, political, economic, and marketing perspectives). The article seeks to provide a basic platform for comparing business network development with corruption to clearly differentiate between these two concepts. The article clarifies how foreign MNEs can effectively establish and maintain business networks to navigate their way through the complex institutions in China and local networks. The article suggests that developing a business network strategy could add value to activities of MNEs in China. Although not all established business networks will definitely lead to new opportunities or bring about greater competitive advantages, an ineffective business network strategy may actually reduce the ability of foreign MNEs to achieve performance outcomes in China. An analysis of the business network strategy would be invaluable to help foreign MNEs to develop business operations in China effectively.

KEYWORDS:

• business networks
• China
• foreign MNEs

ACKNOWLEDGMENT

The authors thank the anonymous reviewer and guest editors Dr. Mehmet Demirbag and Dr. Ekrem Tatoglu for helpful comments on earlier drafts. We also thank Dr. Paresha Sinha, Rong Hou (Rona) and Joella Allott for their research assistance.