Culture, capitalism and political entrepreneurship: Transnational business ventures of the Singapore‐Chinese in China

This article analyses the transnational practices of Singapore‐Chinese companies venturing into China since the 1980s. Whereas in Western management discourse Western firms are supposed to build cross‐border coalitions on rational principles, Chinese firms are said to base their economic relations in ethnic ties resulting in a high level of cultural cohesion within their business networks. However, this vision is challenged in this paper. The question is raised whether increased investments by Singapore‐Chinese private and public companies in China have been due to shared cultural values, to capitalist profit seeking, or to the fact that governments have framed policies to support such investments. The paper argues in favour of a mix of the three perspectives. It is for cheap labour and untapped markets that Singapore‐Chinese entrepreneurs invest in China. However, other incentives also apply. Sentimental or moral reasons may encourage the Singapore‐Chinese to strengthen ties with their 'hometown' in China and other Chinese diaspora entrepreneurs in the world through economic investments. At the political level, the Singaporean government provides incentives and facilities for domestic companies to venture across borders, and acts as the main investor in trans‐border joint ventures and sponsor for trade missions in China.