Globalizing China: The Influence, Strategies and Successes of Chinese Returnee Entrepreneurs

by Huiyao Wang

Overview

In recent years, a new spectacular group of entrepreneurs in China called Chinese Returnee Entrepreneurs (CREs) has emerged. Not only have they contributed enormously to the rapid growth of the Chinese economy, but they also have connected China to the outside world in today's globalized economy. This book examines the literature on the returnee phenomena and assesses the impact and influence of Chinese Returnee Entrepreneurs. This is the first major empirical study to evaluate the impact of CREs in the Chinese globalization process. It also examines the roles, drivers, strategies, and performances of CREs on environment-strategy linkages in a strong emerging economy. The research highlights the significance of strategies, drivers, constraints, and performance relations for CREs success in shaping their operational framework in China. The findings of this study suggest that CREs have become a driving force in Chinese globalization, dominating the internet, IT and media industries. They have become leading players in the Chinese hi-tech industries, as well as the best team players and social capital users of international guanxi. The study reveals that CREs' competitive advantages lie in their strategies utilizing technology, team work, market approach, social connections, professional qualifications, and international working experience.

Product Details

ISBN-13:	9781780523880
Publisher:	Emerald Group Publishing Limited
Publication date:	11/05/2012
Pages:	204
Product dimensions:	6.85(w) x 9.69(h) x 0.71(d)

Table of Contents

Acknowledgments xi

Foreword xiii

1 Introduction 1

1.1 Background of Chinese Returnees 3

1.1.1 A Brief History and Five Generations of the Chinese Returnees 4

1.2 Impact of China's Talent Strategy on Chinese Returnees 8

1.2.1 Chinese Intensify Talent Circulation with the Outside World 9

1.2.2 China Launches Thousand Talents Program to the World, Mainly on Returnees 10

1.2.3 More US Trained Chinese Returnees are Coming Home 11

1.2.4 Most Recent Findings on Chinese Returnee Entrepreneurs 12

1.3 Contributions of Contemporary Chinese Returnees 12

1.4 Organization of the Book 15

2 Different Reviews on Returnees Phenomena 17

2.1 Talent Flow Theories 17

2.1.1 Brain Drain 18

2.1.2 Brain Gain 18

2.1.3 Brain Circulation 18

2.2 Entrepreneurship Perspective 19

2.3 Strategic Perspective: Environment-Strategy-Performance 20

2.3.1 Environmental Factors 21

2.3.2 Strategy 22

2.3.3 Environment, Strategy, and Performance 23

2.4 Studies on Contemporary Returnee Entrepreneurs 23

2.5 Proposed Research and Model Development 25

3 Status and Influences of Chinese Returnees 29

3.1 Status and Survey of the Chinese Returnees 30

3.1.1 The Time Frame When Respondents Went Abroad 31

3.1.2 Current Status of Respondents 31

3.1.3 Country of Studies 31

3.1.4 Fields of Study: The Changing Focus of Studies 32

3.1.5 Current Work: Returnees Choice of Professions 32

3.1.6 Reasons for Studying Abroad 33

3.1.7 Reasons for Returning to China 34

3.1.8 Reasons for Not Returning to China Yet 34

3.1.9 Requisites for Success upon Return 34

3.1.10 Strategic Factors for Starting Business in China 35

3.1.11 Personal Qualities of CR Entrepreneurs 36

3.1.12 The Insufficiency of Domestic Entrepreneurial Start-up Environment 36

3.1.13 Performance of Their Return Experience 37

3.2 The Influences of China's Returnee Entrepreneurs 38

3.2.1 The Thriving Forces in China's Entrepreneurial Drive 38

3.2.2 Becoming Leading Entrepreneurs of China's Hi-Tech Industries 39

3.2.3 Taking New Technology and Vitality to Chinese Economy 40

3.2.4 The Front-Runner of China's Service Industry 41

3.2.5 Bring Venture Capital and Mechanism back to China 43

3.2.6 Speed up Growth of Small and Medium Enterprises 45

3.2.7 Pioneering Chinese Enterprises Listing Overseas 46

3.2.8 Bring in New Vitality to the Traditional Industries 49

3.3 Political, Social, and Cultural Challenges 51

3.3.1 The Difficulties and Obstacles Facing Returnees 51

3.3.2 Seagulls are on the Rising Side 51

3.3.3 Seaweeds (Wait for Job) Start to Happen 52

3.3.4 Start-up Capital Difficulties 52

3.3.5 The Schooling for Children When Returned 53

3.3.6 The Hopes on Dual Citizenship 53

3.4 Summary 54

4 Strategic Orientations of Chinese Returnee Entrepreneurs 55

4.1 Environment-Strategy-Performance of 30 CRE Case Summaries 55

4.2 Findings of 30 CRE Mini Case Studies 89

4.2.1 Summary of Environment-Strategy-Performance of 30 CR Firms 89

4.3 Environment-Strategy-Performance Model for CR Firms Doing Business in China 89

5 Key Strategies Adopted by CR Entrepreneurs 93

5.1 Case Baidu: Technology as a Strategy 94

5.1.1 Background and Performance 94

5.1.2 External Environmental Factors 95

5.1.3 Competition 95

5.1.4 Internal Environmental Factors 98

5.1.5 Teamwork with International Experience 99

5.1.6 R&D Orientated Culture 99

5.1.7 Business Strategies 100

5.1.8 Competitor Orientation 100

5.1.9 Pursuing a Market-Driven Localization Strategy 101

5.2 Case AsiaInfo: Networking as a Strategy 102

5.2.1 Background and Performance 102

5.2.2 External Environmental Factors 107

5.2.3 Competition 108

5.2.4 Other Factors 108

5.2.5 Internal Environmental Factors 108

5.2.6 Cultivating a Unique Culture 109

5.2.7 Business Strategies 110

5.2.8 Customer Solution Orientation 112

5.2.9 Attracting Talents 113

5.2.10 IPO Strategy 114

5.2.11 Focus on Key Customers 115

5.3 Case VenusTech: Networking as a Strategy 116

5.3.1 Background and Performance 116

5.3.2 External Environmental Factors 118

5.3.3 Overcome Competition and Uncertainty 118

5.3.4 Market Expansion 119

5.3.5 Internal Environmental Factors 120

5.3.6 Business Strategies 121

5.3.7 Technology Leadership 121

5.3.8 Maintain Trust and Build Guanxi 122

5.3.9 R&D Focus 122

5.3.10 Teamwork 123

5.3.11 Strategic Alliance 123

5.4 Case Ctrip: Market as a Strategy 124

5.4.1 Background and Performance 124

5.4.2 External Environmental Factors 126

5.4.3 Market Growth 126

5.4.4 Competition 127

5.4.5 Internal Environmental Factors 128

5.4.6 Team Fit 129

5.4.7 Strong Execution 129

5.4.8 Customers Service 130

5.4.9 Business Strategies 130

5.4.10 Service and Brand 132

5.4.11 Innovation and Invention 133

5.4.12 Strategic Alliance 134

5.4.13 Complementary Team 135

5.5 Case ViMicro: Technology as a Strategy 135

5.5.1 Background and Performance 135

5.5.2 External Environmental Factors 136

5.5.3 Market Niche 138

5.5.4 Internal Environmental Factors 138

5.5.5 Effective Corporate Communication 138

5.5.6 Business Strategies 139

5.5.7 Patents Development 139

5.5.8 Ability to Adapt 140

5.5.9 R&D Advantages 141

5.5.10 Internationalization 141

5.5.11 Strategic Alliance 142

5.6 Summary of Case Studies 142

6 Key Success Factors for Chinese Returnee Entrepreneurs 145

6.1 KSF1: Technology Leadership Tends to be More Successful 145

6.2 KSF2: International Network Strategy Helps CR Entrepreneurs to Succeed 153

6.3 KSF3: Teamwork Approach Helps CR Entrepreneurs to Succeed 157

6.4 KSF4: Overseas Experience Helps CR Entrepreneurs to Succeed 161

6.5 KSF5: Higher Qualifications Help CR Entrepreneurs to Succeed 163

6.6 KSF6: Venture Capital Helps CR Entrepreneurs to Succeed 166

6.7 KSF7: Adopting an International Market Strategy Helps CR Entrepreneurs to Succeed 171

6.8 KSF8: CRs Entrepreneurial Spirit Helps Them in Managing MNCs 175

6.9 KSF9: Returnees from the United States Tend to be More Entrepreneurial and Innovative 177

6.10 KSF10: The Optimal Age to Start a CR Business 177

7 Conclusions: Returnee Solutions to Globalizing China 179

7.1 Chinese Returnees Will Become an Innovative Force in China 179

7.2 Chinese Returnees Will Help Chinese Firms in Going Global 180

7.3 Theoretical Implications 182

7.4 Managerial Implications 183

7.5 Limitations and Future Research 183

References 187

Appendix 1 Research Methodology 201

Appendix 2 CR Entrepreneurs Interviewed for the Study 203

Appendix 3 Other CR Businessmen Interviewed for the Study 205

About the Author 207