The Bamboo Network
The Bamboo Network Explained
What is the ‘bamboo network’?
The bamboo network refers to the conglomerates propelling Southeast Asian economies which started as small family businesses run by overseas Chinese. The businesses are managed by the family of the founder, and are run with strong Confucian values. The combined output of the 55 million overseas Chinese is equal to a good-sized country, or close to $600 billion. Chinese expatriate workers are integral to economic success in countries such as Singapore, Thailand, Malaysia, Indonesia, Taiwan, Hong Kong, the Philippines, and Vietnam.
Most of these conglomerates are started by Chinese expatriates who move country and start out with little or no savings, work hard and earn enough to start their own businesses, and constantly reinvest to maximise their cash. Typically, a successful family will own many businesses spread over a number of countries. Control of the business is general passed from generation to generation, and since for the most part the receivers of the business have already had an active managerial role, the transitions tend to be quite smooth, as opposed to the western idea of a big takeover with sweeping changes and redundancies all round.
Li Ka-Shing is a prime example of a Chinese expat in the bamboo network. Li’s father died when he was 15 so he dropped out of school and got a job labouring at a plastics company to support his family. He worked there for 16 hours per day. Eventually, he had saved enough money to start his own business, Cheung Kong Industries, which specialised in the manufacture of plastics. He then expanded the organisation into a leading real estate investment company, and eventually acquired Hutchison Whampoa, a company with the world’s biggest port and telecommunications operations, and Hong Kong Electric Holdings Limited. Li Ka-Shing’s son, Victor Li, serves as managing director and deputy chairman of Cheung Kong Holdings Limited.
Y.C. Wang is another example, with
What is the ‘bamboo network’?
The bamboo network refers to the conglomerates propelling Southeast Asian economies which started as small family businesses run by overseas Chinese. The businesses are managed by the family of the founder, and are run with strong Confucian values. The combined output of the 55 million overseas Chinese is equal to a good-sized country, or close to $600 billion. Chinese expatriate workers are integral to economic success in countries such as Singapore, Thailand, Malaysia, Indonesia, Taiwan, Hong Kong, the Philippines, and Vietnam.
Most of these conglomerates are started by Chinese expatriates who move country and start out with little or no savings, work hard and earn enough to start their own businesses, and constantly reinvest to maximise their cash. Typically, a successful family will own many businesses spread over a number of countries. Control of the business is general passed from generation to generation, and since for the most part the receivers of the business have already had an active managerial role, the transitions tend to be quite smooth, as opposed to the western idea of a big takeover with sweeping changes and redundancies all round.
Li Ka-Shing is a prime example of a Chinese expat in the bamboo network. Li’s father died when he was 15 so he dropped out of school and got a job labouring at a plastics company to support his family. He worked there for 16 hours per day. Eventually, he had saved enough money to start his own business, Cheung Kong Industries, which specialised in the manufacture of plastics. He then expanded the organisation into a leading real estate investment company, and eventually acquired Hutchison Whampoa, a company with the world’s biggest port and telecommunications operations, and Hong Kong Electric Holdings Limited. Li Ka-Shing’s son, Victor Li, serves as managing director and deputy chairman of Cheung Kong Holdings Limited.
Y.C. Wang is another example, with
References: 1. Chen, X., and C. C. Chen. 2004. On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development 2. Gold, T., D. Guthrie, and D. Wank. 2002. Social Connections in China. Cambridge: Cambridge university press. (Gold, Guthrie and Wank 2002, 1) 3. Kiong T. C., and Y. P. Kee. 1998. Guanxi Bases, Xinyong and Chinese Business Networks. The British Journal of Sociology 49 (1): 75-96. Proquest. (accessed October 1, 2008) (Kiong and Kee 1998, 75) 4. Lee, D., J. H. Pae, and Y. H. Wong. 2001. A Model of Close Business Relationships in China (Guanxi). European Journal of Marketing 35 (1/2): 51. Proquest. (accessed October 1, 2008). (Lee et al. 2001, 51) 5. Volume 5, second edition Luo, Y. 2007. Asia pacific business series: Guanxi and business 5 (2). World Scientific Publishing 6. Insight of Chinese Economics Culture in Malaysia 7. Weidenbaum, Murray. 1998. The Bamboo Network: Asia’s Family-run Conglomerates. http://www.strategy-business.com/press/16635507/9702 (accessed September 10, 2008) 8. Yan, Jun 9. Buderi, R., and G. T. Huang. 2006. Guanxi, the Art of Relationships: Microsoft, China and Bill Gate’s Plan to Win the Road Ahead. New York: Simon and Schuster. 10. Huang, Y. 2000. The Personal Influence Model and Gao Guanxi in Taiwan Chinese Public Relations. Public Relations Review 26 (2):219–236. Google Scholar. (accessed October 2, 2008).