Convergence and divergence of ethnic Chinese business networks in the Asia-Pacific

Abstract

This study examines the characteristics of effectiveness ethnic Chinese business networks (Guanxi) in Malaysia, Indonesia, Singapore, Australia, Hong Kong and the Peoples' Republic of China. There are no statistical significance differences in the degree of business networks and human capital skills such as the extent of technological skills and capabilities and managerial and organizational skills among these ethnic Chinese entrepreneurs. Significant differences can be identified in the extent of networking with government officials and entrepreneur's strategic orientation. Annual growth in net profit is predicted by the extent of managerial and organisational skills, strategic orientation, and the extent of networking with government officials. Annual growth in sales is predicted by the degree of technological skills and capabilities and the extent of networking with government officials. The results suggest the importance of human capital and strategic orientation in effective firm performance in ethnic Chinese business networks in the region.