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Diversification and Extensible Networks: The Strategies of Chinese Businesses in Australia 1
Author(s) -
LeverTracy Constance,
Ip David
Publication year - 2005
Publication title -
international migration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.681
H-Index - 64
eISSN - 1468-2435
pISSN - 0020-7985
DOI - 10.1111/j.1468-2435.2005.00326.x
Subject(s) - diversification (marketing strategy) , ethnic group , economic geography , ethnic chinese , niche , business , industrial organization , marketing , sociology , economics , ecology , anthropology , biology
The paper reports on a study of 28 ethnic Chinese businesses in Brisbane, Adelaide, and Perth, carried out in 2000 and 2001. It focuses on their strategies of vertical, horizontal, and unrelated diversification often combining different activities, products, and markets at the same time. It demonstrates how these practices are socially embedded in their preference for using personal networks. Non‐related diversification, in particular, promotes and is facilitated by using “weak ties” that serve as bridges, leading into new networks (Granovetter, 1973). This can create links to Chinese of different national and dialect origins and to those of other ethnicities. It is suggested that open networks and diversification mutually interact to support each other and may have evolved in tandem from earlier, more closed and niche bound business cultures and practices.