ABSTRACT
This chapter attempts to use Austrian theories of entrepreneurship in economics to explain the operations and practice of Li & Fung's business. In an Austrian economic perspective, entrepreneurs attempt to coordinate economic activities for profits. The driving force of the market process is provided neither by the consumers nor by the owners of the means of production such as land, capital goods, and labor, but by the promoting and speculating entrepreneurs. In the Austrian perspective of market process, Li & Fung is properly regarded as an international entrepreneur. Li & Fung was first established in Guangzhou, China by Mr. Fung Pak-Liu and Mr. Li To-Ming. It exhibits capabilities in international coordination by understanding capabilities of the market participants, building mutual trust, ensuring quality and on-time delivery, constructing a global information network, and internal organization and incentive system. Li & Fung can be regarded as a global knowledge broker that transmits, assimilates, and creates knowledge around the world.
