High technology and globalization challenges facing overseas Chinese entrepreneurs

Overseas Chinese - those of Chinese decent who live outside Mainland China - have played important, if not dominant, roles in East Asian economies ex-Japan. But their successes came in slower-growth, low-tech industries that meshed with their business culture favoring internal financing, close or family control, and networking. The Asian financial crisis of 1997-98 and ongoing globalization of world markets have made the business environment less favorable for these traditional businesses and business practices. Nevertheless, interviews with 15 entrepreneurs, venture capitalists, and government officials in East Asia suggest that Overseas Chinese entrepreneurs may resist the changes needed to compete in fast-changing, high-tech businesses in a global marketplace. Some, however particularly in Taiwan, are adapting to this new, competitive environment.