The regionalization of Chinese business networks: A study of Singaporean firms in Hainan, China

This paper examines the central role of social and political institutions b ehind motivations and strategies of ethnic Chinese Singaporean investment i n Huinan, China. Drawing upon 22 case studies of Singaporean firms in Haina n, we show that Singaporean investment in Hainan is embedded in Chinese bus iness networks and their associated institutions. At the personal level, di rect investments are largely motivated by the cultural attachments of Singa porean Hainanese to Hainan. Their small- and medium-sized joint ventures la rgely reflect the characteristics of ethnically-based Chinese business netw orks that stress connections, or guanxi. Similarly the influence of social organizations (e.g., clan associations) anti government institutions (e.g., public and quasi-public agencies) on Singaporean investment strategies in Hainan reveals the significance of ongoing social relations institutionaliz ed at the broader societal level.