Research Handbook on the Globalization of Chinese Firms
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Research Handbook on the Globalization of Chinese Firms

  • Elgar original reference

Edited by Craig C. Julian, Zafar U. Ahmed and Junqian Xu

This comprehensive research Handbook encompasses an expansive range of perspectives on the globalization process of Chinese firms. Eminent global scholars provide contributions on a variety of topics, including: • industrial innovation; • technological innovation and learning; • the performance of Chinese international joint ventures,; • the global consumer; • Foreign Direct Investment (FDI) including barriers to FDI and FDI in China’s hinterland areas; • the globalization of Chinese business practices in Africa; • the Human Resource Management Transfer Process; • Corporate Information Disclosure in China’s Stock Market; and • the home employment effect.
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Chapter 4: Global optimal values of enterprise cluster fitness for Chinese firms

Tang Linjia and Lin Li

Extract

Enterprise cluster, as a platform for local industrial specialization and cooperation through the assembling process of enterprises and relevant institutions within certain regions, has created external effects for lowering transaction costs and promoting technological innovation (Wei and Wei, 2004). The innovation network established on the foundation of enterprise clusters has produced positive effects to lower innovation expenses, enhance innovation performance and motivate regional competitiveness (Chi, 2005). The vitality of a cluster is imbedded within the social culture and the interaction network of institutions within a cluster based on the mutual trust of each individual. Therefore, the management of enterprise clusters should not only be implementing policy from the macro-industrial level and cultivating a healthy competitive environment, but also be executed to a more detailed micro level to cope with the relationships among cluster members and the optimization of cluster structures. The cluster members include institutions and organizations such as enterprises of large, medium and small sizes, scientific research institutions, intermediaries, suppliers, customers and governmental departments (von Hippel, 1994), and these organizational members operate as critical nodes within a cluster network. The interaction and intensity of connection among such organizational nodes has formulated the structure of a cluster, and the degree of complexity of the cluster structure has exerted significant influence on the fitness of the enterprise cluster (Press, 2006).

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