Transnational Entrepreneurship and Chinese Business Networks

International business has become one of the most important fields of Chinese business activity in today’s globalizing world economy. When Chinese business firms extend their operations across borders to become transnational corporations (TNCs), they are often entering into host business environments that are fundamentally different from their “home” countries ¹ in terms of institutional and market structures, industrial organization, social relations and cultural practices. To overcome these barriers to globalization, the ethnic Chinese TNCs need actors who are creative, proactive, adaptive and resourceful in different countries; these are all aspects of transnational entrepreneurship. Sometimes, these actors are the owners or founding entrepreneurs themselves. They often participate actively in the establishment and management of foreign operations. More commonly, these actors in transnational operations are intrapreneurs or professional managers who are neither founders nor owners, but are given much autonomy to manage transnational operations. They may be as entrepreneurial in their approach to managing cross-border operations. An understanding of the nature, modus operandi and performance of these entrepreneurs/intrapreneurs is vital to the success of international operations by these Chinese business firms (see also Yeung 2002).