Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/17357
Title: Private Entrepreneurship in China: A Case Study
Authors: LIU YI
Keywords: PRIVATE ENTREPRENEURSHIP, CHINA, LIFAN, MOTORCYCLE, YIN MINGSHAN
Issue Date: 30-Jul-2009
Source: LIU YI (2009-07-30). Private Entrepreneurship in China: A Case Study. ScholarBank@NUS Repository.
Abstract: As the world¿s factory, China, together with the countries of Central and Eastern Europe, attracts the largest amount of Foreign Direct Investment. This study focuses on the reverse trend - the movement of Chinese enterprises out of China. Although most transnational corporations in China are state-owned enterprises whose growth was encouraged and favoured by the state immediately after the implementation of economic reforms, a small number of private enterprises have succeeded in expanding and becoming the market leaders of their respective industries. Many of these expanded overseas after the 1990s. How did these companies grow so quickly in such a short period of time without government support? What were their motivations for transnationalisation? How can their success in terms of their research and development (R&D) capabilities and their own brands be explained? This paper puts forward private entrepreneurship as the key explanation for this. From the sociology of entrepreneurship perspective, this project illustrates the role of private entrepreneurship in post reform China at multiple levels. It is based on a case study of a market leader in the motorcycle industry in China called the Lifan Group. The findings show that although it has faced constraints, Lifan has emerged and developed itself as a market leader through proactive and innovative strategies that are institutionalised by the chairman into the organisation. Its developmental strategies not only establish it as a role model for latecomers to follow, but its breakthroughs in technological innovation also facilitate the industry to evolve. More importantly, the active involvement of the Lifan chairman in the political arena and social welfare has pushed forward the process of modernisation in China by influencing regulations and policies.
URI: http://scholarbank.nus.edu.sg/handle/10635/17357
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