ENTREPRENEURIAL NETWORKING AND INDUSTRIALIZATION

Abstract

In this thesis, I trace the change in entrepreneurial networking through Singapore's industrialization experience. I identify three different phases of networking using a chronological framework. Singapore's early history was characterized by the existence of strong Chinese networks. These networks traverse both the economic and social realms. Although their importance diminished with the arrival of foreign investors, the basic infrastructure was set for further development. In the next phase of development, the networking was characterized by a "multi­ entrepreneurial" playing field. There is considerable networking between the government and the MNCs. Although the manufacturing industry in Singapore is dominated by the MNCs, the networking between MNCs and local enterprises provided a channel or technology transfer. The interactions with the MNCs also enhanced the managerial expertise of local entrepreneurs.

The networks amongst the local firms do not seem to be strong. Small firms have the potential to become more cohesive and to undertake technology developments. This is shown by the study of the networking of Taiwanese subcontractors. The third phase of development will require greater all rounded participation for the exchange of ideas and know-how. Finns, be they public, private or foreign, will have to work together with each other and with other research and tertiary institutions for greater effectiveness in technology development. This will bring about endogenous growth in the economy.

I use a model to illustrate the transition from the first phase of networking to the second phase. Similarly, I develop a model which illustrates the transition from the second phase of networking to the third phase where there is endogenous growth.