Introduction

In the age of globalization, China presents a unique setting for organizations. The unprecedented growth of China’s economy, which remains the fastest growing in the world, offers significant potential for both Chinese and foreign investors. Today, increased levels of competition in the wake of China’s entry into the WTO have resulted in experimentation and risk-taking as ways of doing business in China. Business networking, as a form of social capital, has emerged as a growth strategy in China’s emerging market economy. However, the uncertainties and ambiguities prevalent in the Chinese business environment, in particular, in the area of creating of marketing competences and strategic flexibility in the Chinese context, are neither well understood nor effectively negotiated by the international investment community. In addition, the complexities in understanding the Chinese philosophy and Chinese management style have led to the anxieties and hesitation of foreign operators. As to the international investors, China’s business environment continues to present many challenges, particularly in how to manage effective business networks and ensure smooth knowledge transfer, especially in international joint venture projects. In the meantime, the Chinese investors are facing even more severe competition, both the internal and external business environment presents to them a double-edged sword with China’s access into the WTO.