Article: Entrepreneurship as a global coordinator: the Li & Fung Group Journal: Journal for Global Business Advancement (JGBA) 2011 Vol.4 No.4 pp.387 - 400 Abstract: This paper integrates the contributions of L.V. Mises, I.M. Kirzner and F.A. Hayek to entrepreneurship and market process to obtain a theory of global coordination. This theory is then applied to understand Li & Fung’s business dynamics. This paper argues that Li & Fung, one of the largest providers of consumer goods in the world, hardly owns or hires any worker, raw material, machinery or factory for making household products. However, by linking up and coordinating most efficient and cheapest manufacturing processes in different parts of the world, the company is able to gain pure entrepreneurial profit. This paper concludes that Li & Fung is a successful international coordinator who transmits, integrates and creates knowledge around the globe. The efforts of Li & Fung and other international entrepreneurs have transformed Hong Kong into Asia’s most dynamic knowledge hub. Inderscience Publishers - linking academia, business and industry through research

Title: Entrepreneurship as a global coordinator: the Li & Fung Group

Authors: Fu-Lai Tony Yu; Diana Sze-Man Kwan

Addresses: Department of Economics and Finance, Hong Kong Shue Yan University, North Point, Hong Kong. ' Office of Educational Services, The Chinese University of Hong Kong, Shatin, Hong Kong

Abstract: This paper integrates the contributions of L.V. Mises, I.M. Kirzner and F.A. Hayek to entrepreneurship and market process to obtain a theory of global coordination. This theory is then applied to understand Li & Fung’s business dynamics. This paper argues that Li & Fung, one of the largest providers of consumer goods in the world, hardly owns or hires any worker, raw material, machinery or factory for making household products. However, by linking up and coordinating most efficient and cheapest manufacturing processes in different parts of the world, the company is able to gain pure entrepreneurial profit. This paper concludes that Li & Fung is a successful international coordinator who transmits, integrates and creates knowledge around the globe. The efforts of Li & Fung and other international entrepreneurs have transformed Hong Kong into Asia’s most dynamic knowledge hub.

Keywords: Li & Fung Group; entrepreneurship; global coordination; Austria; economics; Hong Kong; Ludwig von Mises; economic theories; Israel Kirzner; Austrian School; Friedrich Hayek; market process; business dynamics; consumer goods; workforces; raw materials; machinery; factories; household products; efficient processes; cheap processes; manufacturing processes; efficiency; cheapness; entrepreneurial profits; international coordinators; knowledge transmission; knowledge integration; knowledge creation; international entrepreneurs; Asia; knowledge hubs; competitive advantage; globalisation; business advancement.

DOI: 10.1504/JGBA.2011.043527

Journal for Global Business Advancement, 2011 Vol.4 No.4, pp.387 - 400

Published online: 04 Nov 2011 *

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Title: Entrepreneurship as a global coordinator: the Li & Fung Group

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