《澳大利亚商会-上海:2023澳中企业家与跨境商业生态系统研究报告(英文版)(88页).pdf》由会员分享,可在线阅读,更多相关《澳大利亚商会-上海:2023澳中企业家与跨境商业生态系统研究报告(英文版)(88页).pdf(88页珍藏版)》请在三个皮匠报告上搜索。
1、AustraliaChina Entrepreneurs and Cross-Border Business EcosystemsResearch reportJune 2023 Sponsored by 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by gua
2、rantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.2023 KPMG,an Australian partnership,and a member firm of the KPMG global
3、 organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a sche
4、me approved under Professional Standards Legislation.Table of contents Executive summary.1 Introduction.3 Part 1:Business ecosystems and partnerships.5 1.1 Background.6 1.2 Cross-border connections between Australia and China.7 1.3 AustraliaChina business ecosystems by industries.13 Part 2:The new g
5、eneration of AustraliaChina entrepreneurs.39 2.1 A new generation.40 2.2 The competitiveness of AustraliaChina businesses.49 Part 3:Impacts of COVID-19 and outlook.54 3.1 Negative impacts of COVID-19.55 3.2 Resilience and adaptation.57 3.3 Outlook.60 Part 4:AustraliaChina value chain integration.66
6、4.1 The global value chain perspective.67 4.2 Downstream value chain integration between Australia and China.69 4.3 Upstream interdependence between Australia and China.73 4.4 Moving forward.81 References.83 Authors and contacts.85 1 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems
7、2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent
8、member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Executive summary Diversification for Australian companies into neighbouring Asian markets involves substituting Chinese trade and business partners in tightly connected suppl
9、y chains and deep networks of customers and apply the lessons from operating in the physical,institutional,digital and commercial infrastructure that constitute the Chinese business ecosystem to other markets.Our study sheds light on business ecosystems of AustraliaChina entrepreneurs,two unique gro
10、ups of transnational entrepreneurs in the AustraliaChina space:Chinese Australian entrepreneurs(CAEs)and Australian entrepreneurs in China(AECs).Unlike traditional guanxi,a term that refers to personal connections,business ecosystems are dynamic sets of relationships embedded in a larger system that
11、 includes not only the companies and organisations,but also the various stakeholders,such as customers,suppliers,employees,and the environment.Based on our survey of a total of 175 respondents,we find that both Australian entrepreneurs in China(AECs)and transnational Chinese Australian entrepreneurs
12、(CAEs)maintain active cross-border connections with multiple stakeholders.Their business ecosystems draw on local business links,ethnic ties and cross-border connections.While most of the surveyed entrepreneurs in Australia and China consider their businesses to be active contributors to their busin
13、ess ecosystems,there are numerous companies in the AustraliaChina space that are pivotal as core companies and active orchestrators.Our in-depth case studies of a further 12 AustraliaChina entrepreneurs map key strategies,technologies and participants in existing entrepreneurial ecosystems linking A
14、ustralia and China across seven industries.We find that ecosystems of connected organisations are emerging in a variety of industries and geographies in Australia and China.Both AECs and CAEs are embedded in networks of organisations,local governments and digital business ecosystems to stay relevant
15、 and competitive.For example,in China,institutional innovation at the local government level in particular is a key expertise of some of our case companies,which have expanded into new markets in co-operation with local governments.In Australia,we find that digital ecosystems transferred from China
16、are used to create markets,such as digital offerings in the Australian real estate and healthcare sectors.The deeper integration of both groups of entrepreneurs in their respective business ecosystems offers resilience,adaptability and diversification in the midst of the uncertainties prevailing in
17、the global economy.Our case studies show that even SMEs can make use of their local ecosystems to create new competitive advantages through the cross-border transfer of technical,commercial and institutional knowledge.As business ecosystems spread internationally,the capabilities that enterprises ga
18、in in this process can also be applied in new industries or with partners in new markets.The challenge is to bridge the gaps between different ecosystems.A comparison of AECs and CAEs finds that the two groups of entrepreneurs are more similar than they are different.Our survey reveals a striking si
19、milarity between AECs and CAEs in age,their education level,previous work experience,and global mindset.Most importantly,both groups of entrepreneurs build businesses that are increasingly targeting at local mainstream markets,leveraging a mixture of premium suppliers from Australian and China,focus
20、ing on differentiation as their core competitiveness,and cultivating transnational networks as well as local ethnic links.These entrepreneurs have heritage,cultural and economic links with Australia and China.Their local and global connections are critical national assets for Australias need to enga
21、ge,connect,and succeed in Asian markets.2 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited b
22、y guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.While both groups maintain active links with multiple similar stake
23、holders,we find that their ecosystems have remained independent of each other.We believe that closer interaction between the two groups and leveraging their combined ecosystems would give both access to wider markets,resources and expertise.Differences between Australian entrepreneurs in China and C
24、hinese Australian entrepreneurs mainly lie in the size of their business ecosystems,engagement with digital ecosystems,their resilience and adaption strategies to the negative impacts of COVID-19,and the specific barriers they face to enter into new partnerships.Notably,for CAEs,the ethnic community
25、 links also reflect the creation of a sense of community with their employees,most of whom are of Chinese background.Our study also shows that in terms of outlook,AECs are more optimistic about industry prospects,while CAEs are more optimistic about overall economic prospects.The difference signals
26、continued uncertainties and risks for two groups of entrepreneurs and highlight the challenges they face in managing operation costs,talent acquisition and changes in international situation.Finally,to provide an overview of the existing cross-border business ecosystems between Australia and China,o
27、ur study presents new findings on the economic interdependence of Australia and China using measures constructed from the 2021 edition of the OECDs Inter-Country Input-Output Tables.Australia and China have built mutually beneficial relationship during the past few decades.Our results show that in a
28、 global context Australia is closely linked to the Chinese economy,while China integrates more with major economies such as the US and Europe through global value chains.From both the perspectives of downstream and upstream value chain integrations,Australias industry openness(outputs)and production
29、(inputs)rely more on China than the other way round.For example,Australias downstream exposure to China is,on average,10 times higher than Chinas to Australia.Australias dependence on Chinese inputs is 1.5 times higher than the reverse.Our findings also confirm that,as bilateral economic activities
30、between Australia and China are changing from predominantly direct linkages to indirect linkages,new perspectives such as the business ecosystem approach are needed to study these relations.Continuous market expansions and globalisation will benefit the economies of both countries.At the industry le
31、vel,the economic integration in the mining industry between Australia and China is very high and is supported by numerous indirect linkages from China and other Asian countries.Expanding linkages and networks in non-mining products and services with China will enable Australia to create opportunitie
32、s to tap into the Asias long-term value chain growth.3 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English comp
33、any limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Introduction This project on AustraliaChina entreprene
34、urs and their business ecosystems is sponsored by the National Foundation for Australia-China Relations and led by The University of Sydney Business School in co-operation with KPMG,AustCham Shanghai and Zhejiang University School of Management.For Australian companies,diversification away from Chin
35、a is more than just finding new overseas trade and business partners.It means replacing tightly connected supply chains and deep networks of customers that are embedded in a physical,institutional,digital and commercial business ecosystem.Business ecosystems are differentiated by functions such as e
36、ntrepreneurial ecosystems,institutional ecosystems,production and innovation ecosystems,e-commerce,and digital ecosystems.These functional ecosystems vary from industry to industry and within industries.Australian businesses are deeply involved in these ecosystems in particular in industries engaged
37、 in knowledge transfer.For most multinational enterprises,integration into business ecosystems is the main reason for operating in China.The European Union Chamber of Commerce in China and MERICS 2022 report on Chinas innovation ecosystem in chemical,automotive and machinery industries notes as its
38、first key takeaway their survey respondents find considerable value in participating in Chinas innovation ecosystem,and are keen to expand research and development(R&D)activities and further integrate them with their global strategies to make the most of Chinas strong talent pool,its speed of commer
39、cialisation of new technologies,and the potential of combining European hardware excellence with Chinese software expertise.(European Chamber of Commerce in China and MERICS,2022,p.3).The AmCham Chinas 2023 China Business Climate Survey Report notes,Access to customers/consumers and markets,and favo
40、urable local government policies are the top opportunities for investment in regional clusters and policy-backed areas.This highlights that the dual incentives for making investment decisions remain the quality of consumer habits and the role of local government officials to encourage investment.(Am
41、Cham China,2023).Australian companies share these experiences as they have access to and operate in Chinese business ecosystems.We use surveys and case studies in a small number of industries to understand how Australian businesses are blending their local Australian experiences in their Chinese con
42、text and transferring knowledge from Chinese ecosystems,such as digitalisation,back to their Australian operations and vice versa.Their experience of orchestrating or contributing to Chinese ecosystems is a competitive advantage in Australia and target markets for diversification,particular when div
43、ersifying or friend shoring in neighbouring Asian countries which themselves are closely integrated in the Chinese economy.Transnational or cross-border entrepreneurs are a critical component of Australian business capabilities as they bring new ideas,cross-cultural perspectives,and familiarity with
44、 Asian business ecosystems.Yet,little research has been conducted on entrepreneurs operating in the AustraliaChina economic space.One recent study has explored the social status and business operations of Chinese Australian entrepreneurs(University of Sydney Business School and KPMG,2021).This proje
45、ct is the first to comprehensively profile contemporary Chinese Australian entrepreneurs and Australian entrepreneurs in China.To do so,we focus on the linkages of Australian and Chinese Australian entrepreneurs with suppliers,distributors,competitors,infrastructure providers,digital enablers,govern
46、ment agencies and so on following Moores Business Ecosystem Model.(1996,Figure 1-1).4 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
47、 Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Understanding and culti
48、vating these business ecosystems is critical for Australian SMEs and entrepreneurs in expanding their footprint in Asia,making commercial inroads into fastmoving Chinese technology industries and penetrating regional consumer and producer markets.It is also essential for attracting desired investmen
49、t to Australia and positioning Australia as an entrepreneurial,investor-friendly country.To place cross-border business ecosystems between Australia and China in a global context,our study presents new findings on the economic interdependence of Australia and China using measures constructed from th
50、e 2021 edition of the OECDs Inter-Country Input-Output Tables.Our results show that China is a key market for Australias integration in the global and regional value chains.Australian industries downstream exposure to China is,on average,10 times higher than China to Australia.At the industry level,
51、Australian mining industries have the highest exposure to Chinese demand,supported by numerous indirect linkages from China and other Asian countries.Mining industries high exposure to China means that Australia shares a greater strategic economic interest in the transformation of Chinas metal indus
52、try compared to other countries.For example,Australia can contribute enormously to the Chinese metal industrys carbon neutrality plans by pursuing green technology and investment co-operation with China.In addition,we find that Australias dependence on Chinese inputs is 1.5 times higher than the rev
53、erse.While Australias inputs to Chinese production are concentrated on mining related resources,the nature of inputs from China to Australia is more diverse.China has overtaken Europe and the United States and becomes a top supplier of more high value-added equipment,chemicals,and metals for Austral
54、ia.Figure 1-1:The business ecosystem Source:Moore(1996)DirectSuppliersCoreContributionsDistribution ChannelsSuppliers Of Complementary Products and ServicesStandard BodiesDirect CustomersCustomers of My CustomersSuppliers of My SuppliersCompeting organisations having shared product and service attri
55、butes,business processes,and organisational arrangementsStakeholders,including investors and owners,trade association,labour unionsGovernment agencies and other quasi-government regulatory organisationsCORE BUSINESSEXTENDEDENTEPRISEBUSINESSECOSYSTEM5 AustraliaChina Entrepreneurs and Cross-Border Bus
56、iness Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by
57、 the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Part 1:Business ecosystems and partnerships 6 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a memb
58、er firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.L
59、iability limited by a scheme approved under Professional Standards Legislation.1.1 Background Research into transnational entrepreneurs and the business ecosystems requires knowledge of the entrepreneurs and dynamics of their cross-border business ecosystems.A specific problem in existing research i
60、s the fact that information on business ecosystems is private and therefore incomplete.To identify and profile the current entrepreneurial networks between Australia and China,we used both survey and interview methodology to generate data and provide insights into these business ecosystems.Two separ
61、ate surveys were designed and conducted,one in Australia,one in China,and in total 175 valid responses have been recorded.The Chinese Australian entrepreneurs(CAE)survey captures the businesses and ecosystems of Chinese migrant entrepreneurs who have migrated to Australia since the 1990s.Between Apr
62、il and June 2022,the University of Sydney Business School and KPMG Australia conducted the online CAE survey in Australia.For the survey,we defined Chinese Australian businesses as business entities registered with the Australian Securities and Investments Commission(ASIC)and the Australian Taxation
63、 Office(ATO)and founded or owned by people with Chinese heritage.The survey was promoted by local business chambers and industry associations,as well as via social media platforms.In total,we received 135 valid responses.The Australian entrepreneurs in China(AEC)survey captures the businesses and ec
64、osystems of Australian entrepreneurs who were born in Australia and later came to China to start their businesses and have daily operations conducted in China.Between June and August 2022,the University of Sydney Business School,AustCham Shanghai and Zhejiang University School of Management conducte
65、d the online AEC survey in China to learn about the characteristics of AECs and gain insight into their businesses and ecosystems.For the survey,we defined Australian businesses in China as business entities registered in China and founded or owned by entrepreneurs of Australian nationality.The surv
66、ey was promoted by the University of Sydney Centre in China and Austrade,as well as via social media platforms.In total,we received 40 valid responses.Both surveys together aim to generate representative views of Australian and Chinese Australian entrepreneurs who operate identifiable business ecosy
67、stems across Australia and China,as they export to China,buy from China,manufacture in Australia and China,conduct cross-border innovation and incubation,provide services and invest in Australia and China.These surveys allow us to explore the private entrepreneurship links between Australia and Chin
68、a from the business ecosystem perspective for the first time,including the strategies,technologies,relevant corporate characteristics and government links used by the members of the ecosystems.7 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and
69、 a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organis
70、ation.Liability limited by a scheme approved under Professional Standards Legislation.1.2 Cross-border connections between Australia and China Our survey results show that AustraliaChina entrepreneurs value cross-border connections between Australia and China as a competitive advantage(Figures 1-2 a
71、nd 1-3).Their business ecosystems consist of local business links,ethnic ties,and cross-border linkages.These trusted links with multiple stakeholders via their strong cultural heritage are a competitive advantage for many.Key network partners with whom entrepreneurs frequently engage include custom
72、ers,suppliers,business partners,local banks,import and export logistics companies,local governments,consultants,and local chambers of commerce.They tend not to be involved in or interact with politicians and federal/national level politics.We focus on the cross-border business ecosystems of these Au
73、straliaChina entrepreneurs.These cross-border entrepreneurial ecosystems can provide updated and little-known market information and make significant contributions to decision-making,which further allows entrepreneurs to unlock and take advantage of exclusive business opportunities(Lund et al.,2005;
74、Zhang et al.,2022).Figure 1-2:Australian entrepreneurs in China:In the past 2 years,please rate how often you communicated with these organisations(inner circle=at least once a week,outer circle=at least every few months,expanding circle=once a year or once every few years)Number of respondents=40 A
75、U customersAU product and service providersAU businesses in ChinaAU Federal Government bodies,i.e.AustradeAU banksAU import,export,logistic firmsForeign business chambersCN banksCN product and service providersCN import,export,logistic firmsCN professional consultantsCN othersCN local government bod
76、iesCN private businesses and business circlesUnionpay,Alipay,WeChatpayCN national government bodiesCN research institutes,universitiesCN customersAEC8 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisati
77、on of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved
78、 under Professional Standards Legislation.For AECs,our respondents reported that they interacted with suppliers and customers in China at least every week,on average(Figure 1-2).Other network partners with whom AECs engage at least every few months are local banks,import and export logistic business
79、es,professional consultants,local government bodies and business partners in China,as well as customers,suppliers,other Australian businesses,Australian Federal Government bodies,import and export logistics companies and chambers of commerce in China.We find that CAEs maintain frequent interactions
80、with a wider network of stakeholders than AECs do(Figure 1-3).CAEs interacted with customers,business partners and banks in Australia,as well as with suppliers and customers in China at least every week,on average.Other network partners with whom CAEs engage at least every few months are professiona
81、l consultants,research institutes,local government bodies,import and export logistic businesses and chambers of commerce in Australia,as well as import and export logistic businesses and business partners in China.Interestingly,we find that both groups of entrepreneurs actively engage with local cha
82、mbers of commerce.According to our interviews,these chambers have diverse membership representing different industries.They play an important role for community building and the accumulation of social capital.Well-managed social capital is of great help in coping with disruptions,maintaining operati
83、onal continuity,managing cash and coordinating with suppliers,and it is playing an ever more important part in businesses evolving business ecosystems.Further,we notice that while both groups of entrepreneurs have maintained active links with multiple similar stakeholders,their ecosystems remain ind
84、ependent from each other without overlapping.There are few direct interactions between AECs and CAEs directly,despite their similar competitive goals and business strategies.We believe that leveraging the advantages of the two business ecosystems combined will enable both groups of entrepreneurs to
85、gain access to wider networks of markets,resources,and expertise that can lead to successful diversification and integration.Figure 1-3:Chinese Australian entrepreneurs:In the past 2 years,please rate how often you communicated with these organisations(inner circle=at least once a week,outer circle=
86、at least every month,expanding circle=once a year or once every few years)Number of respondents=135 CN banksCN import,export logistic firmsCN professional consultantsCN othersCN local government bodiesCN national government bodiesCN research institutes,universitiesAU professional consultantsAU partn
87、ers,business circlesAU research institutes,universitiesAU Federal Government bodiesAU Unionpay,Alipay,WeChatpayCN customersAU business chambersAU politiciansAU othersAU import,export,logistic firmsAU local government bodiesCAEAU customersCN product and service providersAU banksCN partners and busine
88、ss circles9 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserve
89、d.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Many businesses are orchestrators in their ecosystems Interestingly,there are numerous companies
90、in the AustraliaChina space that consider their position to be pivotal core companies.For Australian businesses in China,one-quarter (25 percent)of the surveyed companies believed that they were a pivotal core company in their industry segment.For Chinese Australian businesses,one-tenth (11 percent)
91、of the surveyed companies believed that they were a pivotal core company in their industry.In our collection of 12 case studies,companies such as agriculture company Lynch Group and e-commerce company New Aim and Access Group are playing a pivotal role in the ecosystems.The key role of pivotal core
92、companies is well recognised in the business ecosystem literature:they are key players that build up business ecosystems and have a strong network of relationships with other companies and organisations,because they play a role in coordinating and directing the activities of many other players.These
93、 private networks mobilise resources locally and globally.As such,they are able to shape the direction and development of the industry and can have a significant impact on the success or failure of the ecosystem as a whole.In comparison,only a small proportion of the entrepreneurs believed that thei
94、r business is horizontally or vertically integrated.According to the survey results,6 percent of the AECs and 5 percent of the CAEs confirmed that they were horizontally or vertically integrated.High engagement in digital ecosystems Business networks are based on personal rapport and connect busines
95、s partners through personal trust,which provides security and predictability for the network members.The reach of business ecosystems is wider than that of network links.Business ecosystems build on the interdependencies and strategic alignment of stakeholders without hierarchical control.The fast-g
96、rowing digital ecosystems are a good example of this.Tapping into digital ecosystems allows businesses,especially SMEs,access to more customers by improving customer experience and bridging the opening up along value chains.Our survey results show that engagement with digital ecosystems remains low
97、for AECs(Figure 1-4).In fact,one-quarter of the surveyed AECs did not engage in marketing activities:20 percent of the surveyed AECs still used traditional media channels such as TV and media advertising;18 percent used social media,group buying and communication software;and 15 percent used newspap
98、ers and magazines.This can be partly explained by the fact that Australian businesses in China tend to operate on a business-to-business(B2B)model,rather than a business-to-consumer(B2C)model.The digital ecosystems in China have grown into complex operating platforms.This has huge implications if bu
99、sinesses are looking to establish or strengthen their organisations digital footprint and build B2B online audiences.According to our interviews of AECs,entrepreneurs recognised that when selling to both SMEs and large enterprises,digital self-service and remote representative interactions are likel
100、y to become the dominant elements of the B2B go-to-market model.This means that although a digital strategy for B2B companies in China used to be a“nice-to-have”rather than a“must”;it is now critical for success in this market.10 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023
101、 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent memb
102、er firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.In comparison,CAEs tend to be early adopters of digital marketing technologies and are actively engaged with various digital ecosystems(Figure 1-5).Specifically,a staggering 74 pe
103、rcent of the surveyed Chinese-Australian businesses have used social media(i.e.Facebook),group buying platforms (i.e.Groupon)and communication software (i.e.WeChat)to engage with customers.This approach has overtaken traditional marketing channels,including newspapers and magazines (49 percent)and T
104、V and media advertising (39 percent).Another 33 percent of the surveyed businesses have used search advertising(i.e.Google and Baidu)and knowledge-sharing platforms(i.e.Xiaohongshu),and 28 percent of the surveyed businesses have used online video platforms(e.g.YouTube,TikTok).Figure 1-4:Australian e
105、ntrepreneurs in China:what are your marketing approaches in China?(Multiple choice)Number of respondents=40 According to our interviews,CAEs often look to their country of origin,China,for inspiration when considering their corporate strategies.China has become one of the worlds largest digital econ
106、omies,while Australias transition to digital has been accelerated by the COVID-19 pandemic.The paths taken by Chinese companies have relevant implications for CAEs as they develop their marketing approaches.Interestingly,for CAEs,social e-commerce channels have overtaken conventional e-commerce plat
107、forms such as Amazon,eBay or Taobao(Figure 3-5).Social e-commerce,in which goods are sold through social media platforms and social networks,has picked up.Social e-commerce platforms such as group buying platforms(Pinduoduo and Xiaohongshu)and live e-commerce(TikTok)use social groups for high-volume
108、 transactions as opposed to just making intermittent sales.Figure 1-5:Chinese Australian entrepreneurs:what are your marketing approaches in Australia?(Multiple choice)Number of respondents=135 3%3%5%5%8%8%8%15%18%20%25%0%10%20%30%40%50%Radio broadcastOutdoor big shotFlyersSearch advertising andknow
109、ledge sharing platformsOtherOnline video platform(such asYoutube,Tiktok,etc.)E-commerce platforms(suchas Amazon,Ebay,Taobao)Newspaper and magazineSocial media,group buying,and communication softwareTV and media advertising(such as news or pop-upwindow)None8%14%15%16%19%23%28%33%39%49%76%0%20%40%60%8
110、0%100%Radio broadcastFlyersOutdoor big shotNoneE-commerce platforms(suchas Amazon,Ebay,Taobao)OtherOnline video platform(such asYoutube,Tiktok,etc.)Search advertising andknowledge sharing platformsTV and media advertising(such as news or pop-upwindow)Newspaper and magazineSocial media,group buyingpl
111、atforms and communicationsoftware11 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guar
112、antee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Most businesses are active value contributors in their ecosystems Busines
113、ses play different roles in the business ecosystem.Business ecosystems are typically built around platform companies that orchestrate core services such as digitalisation and cloud computing and pull in complementors such as software companies that provide applications.Other businesses in the ecosys
114、tems combine the services they can access to and create their specific value propositions for their purposes and target markets.The role that a business plays in the business ecosystem will depend on a variety of factors,including its size,market position,product offerings and strategic goals.Our su
115、rvey findings show that most of the surveyed entrepreneurs in Australia and China consider their businesses to be active contributors in their business ecosystems,either as market segment competitors or as value-oriented contributors(Figure 1-6).They focus on developing unique products,services,and
116、business models to find new and effective solutions to problems.For example,56 percent of the AECs and 54 percent of the CAEs confirmed that they were market segment competitors,which indicates that their businesses strive to develop resources and capabilities to differentiate themselves from other
117、companies in the market segments.In addition,13 percent of the AECs and 30 percent of the CAEs confirmed that they were value oriented,which indicates that their business models are based on a compelling value proposition.Figure 1-6:How would you describe your companys position in the business ecosy
118、stem?AEC respondents=40;CAE respondents=135 11%25%5%6%30%13%54%56%0%10%20%30%40%50%60%70%80%90%100%CAEAECThe pivotal core companyHorizontally or vertically integratorValue-oriented contributorMarket segment competitors12 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an
119、Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms
120、of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.These two groups of entrepreneurs are more similar than they are different Australia and China have built a mutually beneficial relationship during the past few decades.Our research invest
121、igates two unique groups of transnational entrepreneurs in the AustraliaChina space:Chinese Australian entrepreneurs(CAEs)and Australian entrepreneurs in China(AECs).These entrepreneurs have heritage,cultural and economic links with Australia and China and their local and global connections are crit
122、ical national assets for Australias need to engage,connect,and succeed in China.A comparison of AECs and CAEs finds that the two groups of transnational entrepreneurs are more similar than they are different.Our survey revealed a striking similarity between AECs and CAEs in age,their education level
123、,previous work experience,and global mindset.Most importantly,both groups of transnational entrepreneurs build businesses that are increasingly targeting at local mainstream markets,leveraging a mixture of premium suppliers from Australian and emerging suppliers from China,focusing on differentiatio
124、n as their core competitiveness,and cultivating transnational networks as well as local ethnic links.Differences between Australian entrepreneurs in China and Chinese Australian entrepreneurs mainly lie in the size of their business ecosystems,engagement with digital ecosystems,their resilience and
125、adaption strategies to the negative impacts of COVID-19,and the specific barriers they face to enter into new partnerships.Notably,for CAEs,the ethnic community links also reflect the creation of a sense of community with their employees,most of whom are of Chinese background.Our study shows that in
126、 terms of outlook,AECs are more optimistic about industry prospects,while CAEs are more optimistic about overall economic prospects.The difference signals that there is an unexplored potential to cooperate between the two groups and highlights the potential they have in managing operation costs,tale
127、nt acquisition and changes in international situation.13 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English co
128、mpany limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.1.3 AustraliaChina business ecosystems by industries
129、 In this section,we use our case studies to show that ecosystems of connected organisations are emerging in a variety of industries and geographies in both Australia and China.While the“fabric”and“dynamics”of business ecosystems vary across localities and industries,AustraliaChina entrepreneurs are
130、integrated into multiple business ecosystems in the regions around Shenzhen,Shanghai,and Chengdu in China.A rich variety of ecosystems linking Australian and Chinese private entrepreneurs and SMEs have supported their expansion before 2020.The deep integration of both groups of entrepreneurs in thei
131、r respective business ecosystems offers resilience,adaptation and diversification in the midst of the global economic recovery and uncertainties.Pivotal companies and orchestrators in agriculture:leveraging local governments and digital infrastructure Australia is a significant global producer of ma
132、ny agricultural products(The Australian Immigration Book,2022).China is Australias largest agricultural export market,worth an average of$12.1 billion over the past five financial years,accounting for 25.4 percent of the total value of agricultural exports(Rural Bank,2020).Our case study of Lynch Gr
133、oup showcases the significance of companys effort in building a local business ecosystem for their local integration and business expansion in China.Co-operation with local government authorities and the integration of development with the local community is essential to instituting a business ecosy
134、stem in China.Looking forward,the transformation of agricultural production and agricultural supply chain management through the integration of Industry 4.0 technologies(e.g.the internet of things,robotics,big data,artificial intelligence and blockchain technology)into agriculture is a global proces
135、s towards next-generation agriculture(Agriculture 4.0)(Liu et al.,2020).Australia and China are advanced contributors to this trend towards ecosystems.In Australia,agribusiness ecosystems yield economic outcomes(increased farm productivity through technology upgrading,diversification of revenue stre
136、ams for farmers and landholders,regions and rural communities);environmental outcomes(improved soil,air or water quality,including river health and biodiversity);and social and cultural outcomes(indigenous community empowerment and protection of sacred sites,better livelihoods and community cohesion
137、)(KPMG and National Farmers Federation,2019).In China,the Development Plan for the Digitalisation of Agriculture and Rural Areas(2019-2-25)sets the basis for Chinas Agriculture 4.0.The targets for Chinas digital agricultural economy are to account for 15 percent of value added,15 percent of agricult
138、ural products sold online and internet access for rural areas to reach 70 percent by 2025.These targets are supported by over 250 Modern Agricultural Parks that are designed to operate as ecosystem platforms for co-operation between local governments,research institutes and enterprises.The key stake
139、holders in these ecosystems are local governments,university and research institutes and state-owned enterprises,private enterprises and start-ups(Eurobiz,2022).For entrepreneurs who wish to enter the Chinese market or scale up their footprint,our case study of Lynch Group captures two ways to opera
140、te in such business ecosystems:institutional co-operation with local governments at different levels to upgrade supply chains and local economic infrastructure the introduction of technological and digital infrastructure to local government and businesses,which was essential for the commercial succe
141、ss of the Australian-listed Lynch Group,while it also created new opportunities for local and international businesses at the same time.14 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of indepe
142、ndent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Profe
143、ssional Standards Legislation.Hugh Toll CEO,Lynch Group Ecosystem Features:Local government operating as platforms Digitalisation Ecosystem Role:Pivotal company “But to get going for us was that we needed to start with a mindset.We have to be able to demonstrate that we could improve local practices
144、.We needed to support the local community by paying rent and providing employment and training so that they can become better in the agricultural space.And it had to work for us.And if you didnt have all three of those,youre not gonna succeed.“Hugh Toll,Lynch Group Lynch Group is an integrated whole
145、saler and grower of fresh flowers and potted plants in the Australian and Chinese floral market.The company began supplying the Australian market in 1979 and has been operating in China since 2002.Lynch initially entered the Chinese market because Yunnan Province provided the ideal conditions for gr
146、owing flowers.Chinas large domestic market and capacity for infrastructure and supply chain developments were additional attractions.The companys CEO,Hugh Toll,joined Lynch Group in 2017 and now works with 400 staff in Australia and 1,300 staff in China.At present,90 percent of flowers grown in Chin
147、a by Lynch Group service the Chinese domestic market,and 10 percent are exported to Australia and other overseas destinations.The starting point for the case company was to expand their production base by gaining access to more land.The ecosystem effect emerged over time;first,with the expansion of
148、areas for growing flowers,then the specialisation of agricultural production,followed by infrastructure construction,with roads and air transport,and later social change through training facilities and technological upgrades that together enabled Lynch Group to expand their production base to the la
149、rgest such facility in China.The company worked closely with local governments,producers,and other businesses from the village to township and county levels to secure the production bases,logistics and training,and also engaged further up with provincial and central institutions when required.For th
150、eir core business,Lynch Group leveraged digital technology to introduce established Australian practices to Chinas floral industry to link it with global supply chains and marketing networks.The resulting ecosystem has enabled other industries outside the floral industry to make use of newly establi
151、shed infrastructure and procedures to reach wider markets.Lynch Groups technology input enabled better yields and improved flower quality and shelf-life this was a necessary capital investment into the market that allowed the business to achieve the maximum utility and efficiency of agricultural lan
152、d.15 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The K
153、PMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Building partnerships with local government bodies Co-operation with local government authorities and th
154、e integration of development with the local community is essential to instituting a business ecosystem in China.Local governments in Yunnan province played a crucial role in supporting the development of Chinas floral industry and Lynchs expansion in China over the past 20 years.The Yunnan governmen
155、t was open to apportioning land to secure yields for growing and was willing to invest in building supply chain infrastructure,including refrigerated transport and local air links.By working with all levels of governments in Yunnan,Lynch was able to secure yields,legalise imported flower varieties a
156、nd protect their intellectual property rights for flower genetics and technologies in China.Retaining a close relationship with local governments in China enabled Lynch to educate the locality on floral business models and integrate into Yunnans agricultural sector.The local government operated as t
157、hough it were a platform organisation in upscaling and internationalising the local economy.16 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Inte
158、rnational Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Digital disrup
159、tors and innovators in e-commerce Our three case studies show that e-commerce ecosystems create new values for consumers and business partners as consumers are more proactive in influencing the market supply.Digital e-commerce platforms provide consumers with rich product information and transparent
160、 market prices that give consumers more decision power in selecting a variety of information,products,and services they consume.This requires e-commerce businesses to make business decisions adapting to a rapidly changing,sophisticated demand market.Moreover,business partners also add value to shari
161、ng information and influencing consumer decisions in the e-commerce business ecosystem.In order to complement sophisticated digital sales platforms,corporate partners in technology,marketing,and finance are integrated into the ecosystem,including digital software providers who support technological
162、operations,marketing and media agencies who communicate products and brands with consumers,and financial service providers who support digital platform payment systems.By involving corporate partners,the e-commerce business ecosystem is aggregated to generate sales traffic with shared data and digit
163、al communication.Cross border e-commerce has achieved rapid growth as technology and logistics have advanced and peoples standard of living has improved.E-commerce has transformed the role of intermediaries in the distribution business ecosystem.While traditional businesses involve distributors as t
164、he intermediary between the vendor and the end consumer,digitalisation has enabled direct B2C and B2B sales that reduce the need for intermediary distributors to reach end-consumers.Among our case studies companies,New Aim has focused on the logistics side of e-commerce and operates a large distribu
165、tion network in Australia.31Jiu,was established by an Australian entrepreneur in Shanghai selling Australian wine and spirits to Chinese clients.Access Corporate Group collaborates with social e-commerce influencers and leverages their regionalised,next generation Shopping APP,VTN,to reach Chinese c
166、ustomers with local payment methods.Their established partnerships enhanced by internet business has helped the business successfully manage the challenges of the COVID-19 pandemic.17 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member f
167、irm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liabi
168、lity limited by a scheme approved under Professional Standards Legislation.Frank Li Founder,31Jiu Ecosystem Features:31Jius business ecosystem comprises value-added digital services,complex technological networks and sophisticated partnership networks Ecosystem Role:Value contributors suppliers,comp
169、lementors Founded in 2013,31Jiu is an importer and distributor of international beverage brands across e-commerce platforms,supermarket chains and retailers in China.The business has 11 offices in China and a strong presence in first-and second-tier cities.In 2022,the company was acquired by an inve
170、stment and distribution enterprise in China,Jebsen Group,to expand its distribution across Greater China (E.J.McKay,2022).Frank Li,a first-generation Chinese-Australian,is currently the Managing Director at 31Jiu.Born in China and has formative years in Australia from the age of 10,Frank acquired en
171、gineering and business administration degrees at the University of New South Wales.Inspired by Chinas entry into the WTO and the opening up of foreign entrepreneurship,Frank moved to China in 2004.The changing dynamics of Chinas business ecosystems Frank suggests that Australia needs to learn about
172、China and learn from Chinas business models,as China is developing at a much faster pace than Australia.These developments have occurred in technology,market movements,consumer demographics,digital infrastructure and domestic regulations.There is thus a need for Australians to develop a new business
173、 model that accepts the differences in market rules,acknowledges risks and integrates with Chinas business ecosystems.Frank also emphasises the importance of seeing the Chinese market through multiple layers,as China is a large country that includes different languages,cultures and demographics,whic
174、h attract different consumer demands.E-commerce platforms account for 30 percent of 31Jius revenue,but its e-commerce strategy needs continuous improvement to meet market expectations.Indeed,Frank states that 31Jiu was less affected by the COVID-19 pandemic,as it adapted well to Chinas evolving soci
175、al e-commerce model.In 2021,the companys soft drink business grew by 40 percent,while its beer business grew at the same annual rate of 100 percent.Digital partnerships drive change Australias business ecosystems demonstrate a lack of resources in finance,technological networks and value-added digit
176、al services,which significantly limits the countrys flexibility and adaptability to respond to market change.Frank emphasises that social e-commerce in China is becoming multi-channel,where large e-commerce platforms such as Taobao and Tmall are converging with social media channels such as WeChat,D
177、ouyin,Kuaishou and Redbook,which have become vendors on digital platforms.This convergence was facilitated with the governments support to strengthen the resilience of Chinas technological networks and the high levels of demand for domestic consumption.As a result,31Jiu has adapted to these changes
178、by partnering with social e-commerce media agencies that specialise in market observations and strategies to help them push out posts and messages through digital channels.This has been 31Jius strategy to target the dynamic consumer demand in China.The partnership model has also revealed a major shi
179、ft in the structure of business networks in China,from informal networks of guanxi with individuals to a formalised,partnership-like network with specialised entities.18 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPM
180、G global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited b
181、y a scheme approved under Professional Standards Legislation.Fung Lam Co-founder,New Aim Ecosystem Features:Utilise professional IT background to grow digital platforms alongside market expansion Increase brand recognition by expanding the consumer base from traditional wholesalers and retailers to
182、engaging with SMEs and expanding B2C sales Leverage the digital and labour advantages from China to improve supply chain efficiency Ecosystem Role:Pivotal company “Data is at the core of our business.”Fung Lam,Co-founder,New Aim Fung Lam,the co-founder and CEO of first-mover Australian e-commerce co
183、mpany New Aim,holds an IT degree from Monash University and began his entrepreneurial career with a single eBay store in 2005.With his background in IT,Fung was New Aims first programmer and now maintains New Aims software systems.Fung sees data at the core of his business,where systemising data res
184、earch,guarding data security and legal compliance are high priorities to enhance the businesss procurement and supply chain efficiencies.Pivot to SMEs and B2C sales to develop the e-commerce ecosystem By 2021,New Aim delivered around 4 million parcels to 50 percent of households in Australia over th
185、e span of four years.The business has a leading position ahead of eBay,Amazon,Kogan and OzPlaza,in addition to direct online retailers such as Myer,David Jones,Big W,Costco and Harvey Norman(Stensholt,2022).In recent years through COVID-19,New Aim has focused on expanding its ecosystem beyond tradit
186、ional large retailers to serve Australian retailer and supplier SMEs,who are increasingly coming online through digital wholesale platforms and marketplaces.Fung stresses that although 50 percent of Australian households consume products directly from New Aim,most consumers are unaware of the busine
187、ss,as New Aim has focused primarily on B2B distribution to date.Reaching new markets has become a priority for New Aim,as part of its mission to develop the Australian ecommerce ecosystem,as it seeks to engage with more SMEs and expand B2C sales.Leveraging digital infrastructure from China New Aims
188、strategy entails maintaining strong links with China to leverage digitalisation and labour supply advantages.Fung created a China-based online support team to ease communications with China-based suppliers he suggests the approach has significantly reduced the cost of maintaining supply chain networ
189、ks and provided New Aim with greater supply chain resilience through access to a larger variety of goods on more competitive terms.New Aim now has connections with more than 400 manufacturers in China,including suppliers who manufacture goods for the companys B2C sales on online marketplaces,as well
190、 as goods for their B2B distribution (Stensholt,2022).19 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English co
191、mpany limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Livia Wang Co-founder and Chief Brand Officer,Access
192、 Corporate Group Ecosystem Features:Established a proprietary reseller management system(DC-SCRM)to facilitate sales with KOLs and social media influencers and wellness experts through digital channels Building brands through a celebration of the quality and provenance of ANZ products,scientific inn
193、ovation within the wellness category and a unique understanding of the lifestyles and demands of the Chinese consumer Ecosystem Role:Pivotal company,orchestrator“The global demand for Australian products is extremely highI think on a national level,we need to be better at recognising the potential o
194、ffered and marketing Australian products accordingly.”Livia Wang,Co-founder and Chief Brand Officer,Access Corporate Group Livia Wang started her global brand management business following six years of working in public relations in China and a studying for a masters degree in Public Relations from
195、the University of Sydney.Livia decided to reinvent the Daigou business model,in which students and tourists from China brought back a significant amount of Australian products to China.In 2017,she founded the brand management company Access Corporate Group with other partners and served as its Chief
196、 Brand Officer.The Sydney-based company now has over 1,000 staff globally,and offices in Australia,China,Singapore,Malaysia,New Zealand and the United States.It exports more than 100 brands to over 10 million consumers worldwide(Access Corporate Group,2022).Demand for their Australian products is st
197、rongest in China,where 80 percent of international sales are generated.Reimagining wellness through an innovative digital ecosystem Access has developed a proprietary global business model that facilitates the rapid incubation of start-up brands and the globalisation of brands that are ready to scal
198、e.The primary business ecosystem of the company consists of providing training,technology and expert content to resellers,sales parties and KOLs in local markets to enable them to educate end consumers and meet their demand for premium wellness products.The ecosystem is sustained by leveraging globa
199、l talent and business networks to support its digital e-commerce channels(Access Corporate Group,2021).Access Corporate Group currently has 250 employees based in China to support its in-house technologies,e-commerce platform operations and direct communication with consumers on the VTN App which br
200、ings together live chat,editorial content and sales promotions.20 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private E
201、nglish company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Digital ecosystem providers in real estate
202、One major trend in the real estate sector in Australia and China is the increasing focus on sustainability and green building practices.This trend is driven by growing awareness of the impact of buildings on the environment and the need to reduce carbon emissions.As Chinas real estate industry enter
203、s a period of increased competition and concentration,local governments play an increasingly important role in urban regeneration and urban redevelopment,with a stronger emphasis on green development and energy saving.Urban transformation has created opportunities for foreign designers and developer
204、s to bring new ideas.One example is Melbourne boutique designer ANKEN Group,which is working with Shanghais district governments and commercial clients,including AustCham Shanghai.Demand among Chinese buyers for Australian real estate has led to spill-overs of Chinese real estate technologies and pr
205、ocedures into the Australian market.Australian developers have started to absorb software developments from China into their design and customer services.Our case study companies Jinding and TEAMLINK represent different stages and approaches to constructing business ecosystems that include developer
206、s,finance providers,digital platform designers and renovators.Our case companies show that businesses in Australia and China should look to merge the best of the old ways of doing business with the best of what was learned during the pandemic.While Australias real estate development standards and fi
207、nancial service models are leading the world,Chinas real estate industry is an innovative ecosystem.The scale of the Chinese real estate market drives constant innovation in technology,design,construction,customer services and finance.The government has introduced new technologies and encouraged the
208、 application of big data,artificial intelligence and 5G communication.Rapid urbanisation and the demand for high quality consumption have led to the digitalisation of planning and design,which relies on 3D virtual reality,while construction makes use of robots.The real estate business ecosystem link
209、s real estate companies,internet technology providers and technology innovators with regulators and urban planners.21 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms af
210、filiated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Leg
211、islation.Alexandra Chu Founder,ANKEN Group Ecosystem Features:Platform:Shanghai City and district governments Business model:property development for urban regeneration,lease and redesign for sublease to community Core capability:boutique design,development Ecosystem Role:Value contributors supplier
212、s,complementors “I think the reason why we are still here is because we have a long-term outlook on building spaces that are community friendly,good for neighbourhoods,good for the city,and good environmentally,rather than just doing specific CSR initiatives.”Alexandra Chu,Founder,ANKEN Group Alexan
213、dra Chu,originally from Melbourne,began her China journey as an architectural designer in 2000 with a multinational US company working on master planning and landscaping in Shanghai.She responded to Shanghais demand for urban regeneration by setting up ANKEN Group,her own boutique real estate develo
214、pment business,in 2003.A business model immersed in Shanghai Inspired by her father,who taught architecture at the Melbourne University for 40 years and was the master planner for Melbournes Chinatown redevelopment,Alexandra created a business model by leasing existing industrial plants and warehous
215、es from local district governments and re-developing them into spaces that could be sub-leased to the community long-term(Korporaal,2019).The business model not only resolved the shortage of capital but also enabled local governments to convert old factory buildings into modern community spaces in t
216、he run-up to the 2010 World Expo.Alexandra identifies taking a“Shanghai perspective”as the crucial long-term strategy for her business.Leveraging the reputation of Australian building design,ANKEN works with local government planners,local communities,and entrepreneurs to create green and sustainabl
217、e community spaces and local employment.In 2019,ANKEN partnered with AustCham Shanghai to develop the stand-alone Australia House in Shanghai(AustCham Shanghai,2022).In 2022,ANKEN Group won the Urban Land Institute(ULI)Asia Pacific Regional Award for excellence in development for re-developing the d
218、erelict space of Alley 363 Changping,Shanghai,into a lightweight,low-carbon,modern working space.22 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG
219、 International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Jay Song
220、Founder,Jinding Ecosystem Features:Complex and resilient sales and operational networks enable spill-over into new markets There is a need for education about markets and awareness of investment opportunities both in China and Australia Breaking the stereotype of China and Chinese people by taking n
221、etwork partners in Australia to move into new markets in China Ecosystem Role:Pivotal company “From the Australian perspective,entering the Chinese market remains challenging due to difficulties to access capital and high levels of discouragement to invest in China posed by the Australian business e
222、nvironmentwhereas from the Chinese point of view,there is also a lack of market education about investment opportunities in Australia,because the Australian market is relatively small,and its only the traditional markets like iron-ore and coal that Chinese investors are aware of,although there are m
223、any other great opportunities in Australia such as in health and technology”Jay Song,Founder,Jinding Jay Song,the founder of the Australian real estate development company,Jinding,founded his business in 2016,inspired by Australias encouraging business environment and the comprehensive legal framewo
224、rks that support entrepreneurship.Jay obtained his accounting degree in China,where as part of his degree he undertook a year of studies in Perth,which was his first visit to Australia.He decided to commence his masters degree in finance at the University of Technology in Sydney;upon finishing his d
225、egree,Jay worked in China for a year before returning to Australia and founded Jinding.In 2019,Jinding reached a peak period of property sales outlook,with about 1,000 properties sold annually.23 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,an
226、d a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organi
227、sation.Liability limited by a scheme approved under Professional Standards Legislation.Leveraging the strength of networks Australia remains a relatively attractive destination for investment,but the market needs better education and support services that can raise greater awareness of investment op
228、portunities in the country.Jay sees himself to have a bridging role that can engage Australians in a realistic perspective of what China is about and what Chinese people are like,through helping Australian networks and partners to understand China,Chinese business models and management styles.Before
229、 the COVID-19 pandemic,Jay would bring developers and partners to Australia and travel to China once every two months to visit their offices in China and host events to sell properties directly to Chinese investors with the coordination of his China-based sales team.Jay highlights that the companys
230、sales figures are supported greatly by its sophisticated sales networks and technology support team in China.Jinding currently has 14 offices with 350 employees in China,with an office in Xian city that covers sales networks in Northwest China,while the other 13 offices cover sales networks across S
231、outheast China.Jay emphasises that the current sales networks are still targeting investors in the first-and second-tier cities of China,as the barriers to investing in Australia remain high,and only certain Chinese demographics can afford to invest.The sales teams analyse consumer data,identify inv
232、estments needs in China and inform the Australian team about where and how to invest,while the technology management team of 25 employees is in Chengdu,China,where the team develops client relationship management and enterprise resource planning systems for Jinding,supports virtual reality technolog
233、ies,runs the backstage of internal operation platforms and classifies digital data on Chinese investor demographics.24 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms a
234、ffiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Le
235、gislation.Walton Chu Founder,TEAMLINK Ecosystem Features:Achieving environmental,social and governance(ESG)goals by adopting green,smart home technologies Ecosystem Role:Pivotal company “I would suggest that to understand more of their backgrounds,understand more of their culture,then we kind of spe
236、ak the same language that people can feel more comfortable,to accept us.That is the first principle we always adopt in our company”Walton Chu,Founder,TEAMLINK Walton Chu began his career path as a medical doctor in China and then became a businessman in the Australian real estate industry.Today,Walt
237、on is the CEO of three core businesses one in the real estate software technology sector,TEAMLINK;one in the property services sector(marketing,sale and management),HOME789;and one in the property development and funds management sector,UFN.Importance of legal compliance and localisation in Australi
238、a Walton recognises the differences in business cultures between Australia and China but at the same time,appreciate that business reputation is equally important in both countries.After Walton transited from his medical practices to the real estate industry,he discovered that,although the real esta
239、te practice in Australia is relatively easy to enter,it is nevertheless a highly regulated industry with closely scrutinised compliance requirements and policies.Immersing with the local business culture in order to be part of the local community was a crucial point of development in Waltons managem
240、ent style.The real estate services brand,HOME789,expanded its businesses across Australia with a constant focus on growing local Australian buyers.Even during the time when the Australian property markets were booming due to significantly increased foreign investors,only 1020 percent of HOME789s cli
241、ents were from overseas.25 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All
242、 rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Technology innovation to achieve borderless collaboration Walton emphasises the im
243、portance of leveraging expertise from different countries,as digitalisation enables borderless communications.From the human resource management and digital innovation perspectives,Walton suggests that diversifying resources and encouraging technology inputs from Asia and all over the world to Austr
244、alia should be implemented in order to provide greater efficiency and cost-effectiveness.Before the COVID-19 pandemic,Walton flew,due to business needs,to China on an average of five to six times every year and at the same time,keeping himself updated with any new technologies and digital trends in
245、Asia.He emphasises that Australia is particularly in need of some level of technology reform by embracing new innovations and ideas from overseas,considering Australias geographical location being in the Southern hemisphere and is not physically connected to any other nations.TEAMLINK,on the other h
246、and,is an artificial intelligence-driven super application that allows real-time digital data software to link all stakeholders,including property developers,project marketers,sales agents,clients,lawyers and bankers on one shared platform.This integrated software replaces the traditional meeting to
247、ols,emails,messages,phone calls and paperwork,and it currently has over 300 channel agencies with more than 7,000 units from approximately 70 projects across 43 real estate developers actively working on the platform(Teamlink,2022).The technology innovation and collaboration also brought in well-des
248、igned 3D and VR technologies from both Asia and America to improve the client experience by viewing the propertys virtual reality scenes.Further,TEAMLINK comprises a technology team consisting of members from various locations globally.Importance of ESG Walton says it is key to give back to the comm
249、unity;his businesses work closely with NGOs and charity organisations to ensure that a percentage of their earnings is reinvested back into the community.To achieve ESG and corporate social responsibility(CSR)goals,Walton stresses the significance of implementing green technologies in property devel
250、opment,such as the use of smart home technologies,planting solar panels for common areas in properties to save electricity and supporting electric car technologies coming into Australia from Asia.26 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership
251、,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global org
252、anisation.Liability limited by a scheme approved under Professional Standards Legislation.Cross-border digitalisation in healthcare:global standards and integration China is facing a host of new health challenges,including an ageing population and as standards of living improve,Chinese consumers hav
253、e been turning their focus to high quality healthcare goods and services.According to the Seventh National Population Census of the Peoples Republic of China,there are 190 million people aged 65 and above,who account for 13.5 percent of the total population(National Bureau of Statistics of China,202
254、1).Changing diets,the increased prevalence of obesity and environmental problems have pushed the traditional public hospital-based healthcare system to its limits and increased demand for foreign healthcare products and services.While there are opportunities,our case study of Star Combo shows that f
255、or healthcare companies that operate in mature supply chains,TGA accreditation is one important element of their ecosystem that is highly recognised by Chinese consumers.This works as a competitive advantage for manufacturers when,for example,the claim of a healthcare product that is,the specific co
256、ntent on the label must meet the range of efficacy allowed by the TGA,and the efficacy claim must be clearly expressed,clear in meaning and free from exaggeration and ambiguity(Australian Government Department of Health and Aged Care,2012).For entrepreneurs who wish to enter the healthcare market or
257、 scale up their footprint,they should take into consideration the unique characteristics of local business ecosystems on both sides:China is globally investing in bio-pharma companies and building up precision manufacturing.In Chinas decentralised economy,local ecosystems pursue breakthrough innovat
258、ion and commercialisation,which include multi-national companies,local bio-tech companies,translational centres and contract service organisations.Australia has advanced healthcare standards which can meet the demands of Chinas middle class.Within Australias healthcare ecosystem,healthcare products
259、and pharmaceuticals are highly controlled by the Australian regulatory authorities such as the Therapeutic Goods Administration(TGA).These advanced standards are enhanced by its natural environment and its status as one of the regions with the least air pollution in the world.27 AustraliaChina Entre
260、preneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are tra
261、demarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Su Zhang Star Combo,CEO/Director Ecosystem Features:Leveraging market demand in Asia to expand manufacturing business in Australi
262、a and integrating supply to fulfil the needs of the Australian market Institutional support through TGA and Australian industry regulations Leveraging social e-commerce to expand B2C sales in China Ecosystem Role:Value contributorssuppliers “Youll be surprised,like,every single different market,thei
263、r needs are different.Even if theyre neighbouring countries or youd think that they would want the same thing,they dont.Its more that you have the flexibility to deal with all those different requests.“Su Zhang,CEO and Director,Star Combo Su Zhang is not only a young and successful female CEO of an
264、ASX-listed pharmaceutical manufacturing company(Star Combo Pharma),but she is also a qualified pharmacist.Su has over 15 years of experience in the pharmaceutical and supplement sectors with previous roles at Terry White Chemist and Abbott Australia and others.Under Sus leadership,Star Combo Pharma
265、has experienced steady organic revenue growth and achieved important milestones including successfully listing the company on the ASX in 2018.Star Combo exports its manufactured goods to health and beauty markets in Asia,including China,Korea,Singapore,Malaysia,Thailand and Vietnam.In Australia,Star
266、 Combo distributes its Living Healthy supplements through over 500 TerryWhite Chemmart pharmacy stores.In 2021,Star Combo acquired the adjacent site and now spans across 30,000m2 total site with multiple production facility and warehouses that are certified by multiple regulatory agencies globally s
267、uch as the TGA,HACCP,DAWR,Halal etc.Australian manufacturer serving regional markets Star Combo began exporting to China after it was founded in 2004,and it has expanded into other Asian regional markets since that time.Star Combos business ecosystem relies heavily on input from their internal manag
268、ement team,external consulting partners,government regulatory bodies and long-term clients.Since it started as an original equipment manufacturer(OEM),Star Combo has upgraded to digital manufacturing with state-of-the-art local,highly automated equipment installed at its new Sydney plant.Supervision
269、 by the TGA and adherence to Australian standards have added to their international competitiveness.28 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with K
270、PMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Levera
271、ging B2C sales with social e-commerce During the COVID-19 pandemic,Star Combo quickly switched from export production to the local market,and it now sells 80 percent of its production in the Australian market.Star Combo sells products in China through online e-commerce platforms such as Alibabas Tma
272、ll and Suning,and it has established a sales office in Chongqing to supply the local B2B market.After adding vitamins and beauty and health products to its product range,Star Combo acquired retailers Koala Mall and Austoyou Group as digital sales channels for B2C customers.The online retailer Austoy
273、ou held over 5,000 high-demand product lines sold directly to Chinese consumers,and Koala Mall had two retail stores in Sydney that offered a physical sales platform for vitamins,skincare,milk products and health supplements(Cotton,2019).The Austoyou platform,now known as Aoyou,has become Star Combo
274、s primary digital sales platform for retail customers in China.Active value contributors in mining and renewable energy The mining manufacturing ecosystem in Australia and China is an important aspect of the overall relationship of the extraction industry between the two countries and globally.Austr
275、alia is a major producer of mining equipment and technology,with companies such as Rio Tinto,BHP and Fortescue Metals Group that produce a wide range of products such as mining trucks,excavators and drilling equipment.These products are exported to China and other countries to support the mining ind
276、ustry.The business model of our case company,Black Diamond Drilling,is based upon leveraging the efficient,high-value-added,digitalised manufacturing facilities available in China with the physical presence of Western Australia as a mining site and Perth as an information hub for new and emerging tr
277、ends in global mining technology to produce internationally competitive mining equipment.Our case study shows that the mining business ecosystems between Australia and China are well beyond simply shipping raw materials to China for processing.This ecosystem involves the production of mining equipme
278、nt and technology in both countries,the use of these products in mining,as well as the provision of other services such as engineering and decarbonisation technologies.Overall,these ecosystems are very global and support the growth and development of the mining industries in both countries.They are
279、crucial for both countries technology and sustainability transformations(Minerals Council of Australia,2022).29 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliat
280、ed with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislati
281、on.Andy Yang Founder,Black Diamond Drilling Services Australia Ecosystem Features:Leveraging the advantages of a Chinese manufacturing base in Australia Relying on the Perth mining ecosystem for cutting-edge manufacturing Ecosystem Role:Value contributors suppliers,complementors “The manufacturing s
282、tandard in Australia is equivalent to global standardsso if we manufacture here,that means the equipment automatically qualifies for exporting”Andy Yang,Founder,Black Diamond Drilling Services Australia Black Diamond Drilling was originally founded in Changsha,China,in 1999 by the father of Andy Yan
283、g,the current proprietor of Black Diamond Drilling Services in Australia.They brought Black Diamond Drilling to Perth in 2015 to gain access to the Australian mining industry.In 2015,Andy Yang established Black Diamond Drilling as an OEM producer and supplier of consumables for mining equipment impo
284、rted from its home factory in China.Black Diamond Drilling now has more than 20 remote storage locations with mining equipment stored for clients across Australia,and it stocks over 2,300 equipment items at their Perth warehouse.After it imports mining equipment from its factory in China,the busines
285、s in Australia supplies equipment to 13 countries around the world from its Perth warehouse,which accounts for 20 percent of the total revenue of Black Diamond Drilling Australia and adds to Australian mining equipment exports.Building a global OEM supply chain Black Diamond Drilling enterprise was
286、founded in 1999 in Changsha,China,as a drilling machinery manufacturer and pneumatic tools supplier.As of 2007,the business in China exported machinery to more than 50 countries,including Australia,and by 2015,it became the largest enterprise of its kind in China specialising in OEM production.The c
287、ompany in China now has more than 200 patents,and it exports to more than 50 countries,with an export ratio of 70 percent.Australian business reputation to access global markets Black Diamond Drilling is developing a production base in Perth to build a business reputation as an Australian company su
288、pplying Australian-produced OEM products.Equipment produced in Australia matches international standards for OEM export:it automatically qualifies for international export.The business supplies mining equipment to all major global markets,with a strong presence in the United States,where Black Diamo
289、nd has a local distribution partnership but no production facilities.30 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a pri
290、vate English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Scaling up renewable energy applicati
291、ons through global integration Renewable energy companies are collaborating in multiple business ecosystems.For example,Australian and Chinese scientists have developed collaborative projects to help secure future energy supplies for both Australia and China under the AustraliaChina Joint Research C
292、entre for Energy(Australian Government Department of Industry Science and Resources,2021).The Australian Government scientific research agency,CSIRO,has also partnered with the Chinese company Thermal Focus,after Chinas announcement it would produce 1.4 GW of concentrated solar thermal energy by 201
293、8,and 5 GW by 2020.According to 2021 statistics,renewable energy accounted for 3.2 percent(A$25 million)of the total Chinese direct investment in Australia of A$778.2 million(KPMG,2021).Our case of Suzhou Vincent New Energy Electric Co Ltd shows the rapid transformation of Chinas renewable energy su
294、pply chains.These renewable supply chains are going through rapid transformations through technology upgrade,international cooperation through links from a younger generation of entrepreneurs,and local government strategic roles in supporting industrial upgrade and long-term orientation.This industr
295、ial chain transformation can benefit Australian businesses via equipment and engineering collaboration.Our case company Genex Power,for example,runs a pumped hydro-energy project which was facilitated by its strategic partnership with renewable energy experts in China.China remains a strong player i
296、n the equipment supply market share for Genex Power,particularly in the supply of hydro and solar energy equipment.Looking forward,both Australia and China benefit from each other being more integrated in the renewable energy ecosystems.Renewable energy accounted for 32.5 percent of total electricit
297、y generation in Australia in 2021,which is an increase of nearly 5 percent over 2020(Clean Energy Council,2022).China is on track to meet its target of 33 percent renewable energy consumption by 2025 under its“Dual Carbon”national strategy;it is expected to surpass this target as it continues to wor
298、k to remove grid bottlenecks to accommodate more renewable energy(S&P Global,2022).31 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International
299、 Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Kevin He Founder,Suzhou
300、 Vincent New Energy Electric Co Ltd Ecosystem Features:Integrating business growth with local government support and development priorities Adjusting business management approach based on changing market conditions,legal compliance requirements,and local business environments in China Ecosystem Role
301、:Value contributors suppliers,complementors “Local business ecosystems vary.According to my observation,most of the large-scale businesses in Southern Jiangsu(Province)were privatised from state-owned enterprises compared to businesses in Zhejiang(Province)that are more e-commerce service and invest
302、ment driven,Jiangsu businesses are more focused on upgrading manufacturing expertise in their own field of business”Kevin He,Founder,Suzhou Vincent New Energy Kevin He moved to Perth from Wenzhou,China to study for his postgraduate degree in Accounting in 2005.Australia was an appealing study destin
303、ation as Australia was a relatively close destination to China and has a rich local Chinese community.In 2010,Kevin returned to China and worked at his fathers business before starting his own company,Suzhou Vincent New Energy,in 2022.The company research and manufacture electrical power systems tha
304、t supply to leading wind turbine manufactures.Kevin stresses his experience studying in the Australian education system has equipped him with problem-solving capabilities and exposure to international networks.He also suggests that his experience living in Australia has trained him in cross-cultural
305、 communication skills,which is reflected in his business interactions today with suppliers and internal management colleagues from India.Influence of family business on business establishment Kevins fathers company was founded in Wenzhou,China,in 1986 specialising in electric transformer manufacturi
306、ng.By the late 1990s,the business acquired 23 state-owned enterprises during the privatisation period.After Kevins return to China,he worked at his fathers company in Wenzhou city for a year before moving to the companys subsidiary company in Suzhou city.From his experiences in Suzhou,Kevin gained e
307、xposure to local manufacturing supply chains and ecosystems and engaged closely with industry associations and local government partners.The experience directly led to Kevins establishment of his own business in electrical power systems that supply to leading wind turbine manufacturers.32 AustraliaC
308、hina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and lo
309、go are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Local entrepreneurial environment Supportive local government adds value to local businesses development greatly.Workin
310、g in Suzhou allowed Kevin to build networks and explore business opportunities in the Jiangsu region.Kevin emphasises that there is a significant difference between doing business amongst different regions of China due to varied regional development priorities,business communities,and local governme
311、nt resources.He points out that local governments strategic roles in supporting industrial upgrade and long-term orientation make them a key stakeholder in the local business systems.Differences between elder and younger generations of entrepreneurs in China Kevin suggests present date entrepreneurs
312、 in China focus more on high-value-added technology and capabilities,standards and social responsibilities,and international expansion.He highlights the distinction between his generation and his fathers generation of entrepreneurs in China over three aspects:1)The business market in China is differ
313、ent the Chinese market for the elder generation of entrepreneurs was at times of rapid market growth.Whereas today,Chinas market is driven by competitive advantages and legal compliance.2)The business stakeholders have become different the elder generation entrepreneurs in Wenzhou were mostly family
314、 corporations,where business resources were interdependent amongst community networks.However,today,companies focus on both local links and transnational links that prioritise access to core capabilities,markets,and opportunities.3)The concept of employment has changed elder generation entrepreneurs
315、 prefer to employ familial members to business,whereas younger generations take a more globalised approach to employing talent,distributing salary,and applying fairness to human resource evaluation systems.33 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian p
316、artnership,and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG
317、global organisation.Liability limited by a scheme approved under Professional Standards Legislation.Ben Guo Co-founder,Genex Power Ecosystem Features:Linking Australias renewable energy sector with global energy partners Involving Chinese suppliers of equipment and technologies Ecosystem Role:Value
318、contributors suppliers,complementors “Theres a lot of opportunities in the electricity market in Australia,particularly because the penetration of renewable energy is not as high in the Australian market as in some of the other countriesand if we want to get to net zero,theres a lot more investment
319、to come”“from an equipment supply perspective,whether its hydro,wind or solar energy,China has a strong market share”Ben Guo,Co-founder,Genex Power Genex Power is a renewable energy company that develops energy generation and storage projects in Australia;it operates in Queensland and NSW and is hea
320、dquartered in Sydney.The company started in 2013 and was listed on the ASX in 2015 as it began its first major pumped hydro-energy project in Queensland,Australia.Ben Guo a co-founder,shareholder,former CFO and currently one of the Directors at Genex Power has been a key driver behind the enterprise
321、.With Bens professional experiences based on over 10 years in corporate financing,he has played a key role in financing projects and bringing in crucial Chinese enterprise partners.China remains a leader in the global renewable energy market Genex Powers pumped hydro-energy project was facilitated b
322、y its strategic partnership with renewable energy experts in China.Ben emphasises that China remains a very strong player in the equipment supply market share,particularly in the supply of hydro,wind and solar energy equipment.In 2015,the company started a pumped hydro-energy project in partnership
323、with the Chinese renewable energy enterprise,Zhefu,to match the capital investment in Australia with suitable skills,machinery,infrastructure and experts.In addition,the initial project design and feasibility was undertaken by major Chinese design firm Huadong Engineering Corporation in collaboratio
324、n with Tasmanias Entura.More recently,Genex Powers wind project in the Kidston clean energy hub development in Queensland involved a partnership with a China-based energy equipment supplier,Goldwind,that will provide wind turbines for the project(Carroll,2022).The supply of renewable technologies an
325、d manufactured machinery from China remains competitive,as some of the equipment and renewable energy technologies remain exclusive to suppliers from China.34 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global or
326、ganisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme
327、approved under Professional Standards Legislation.Food and hospitality:market creation and the significance of digital management capabilities For many years,operating a Chinese restaurant in Australia has been a path chosen by many Chinese immigrants.The impact of COVID-19,increased costs,labour sh
328、ortages and the reduction of immigrants and international students have all deeply affected the performance of Chinese restaurants in Australia over the past three years.However,there are always opportunities in crises,and the Chinese restaurant owners are working with partners in Australia and Chin
329、a to foster new opportunities.They have set up business ecosystems with digital management capabilities to survive and expand in the post-pandemic era.For example,the case company,Master Lanzhou Beef Noodle Bar,flexibly uses social e-commerce platforms for publicity and customer acquisition and take
330、s advantage of modern logistics for cold chain supplies to import fresh Chinese ingredients and raw materials.35 AustraliaChina Entrepreneurs and Cross-Border Business Ecosystems 2023 KPMG,an Australian partnership,and a member firm of the KPMG global organisation of independent member firms affilia
331、ted with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.Liability limited by a scheme approved under Professional Standards Legislat
332、ion.Lu Gan Founder,FFH Consulting Pty (Master Lanzhou Beef Noodle Bar)Ecosystem Features:The resilience of a business is determined by self-awareness and being self-driven,rather than solely a need for survival Seeing business competitors as similar entities in the community who are also building br
333、ands that contribute to creating better awareness of Chinese cuisine and noodle culture amongst the Australian community Digitalisation enables the breaking down of cultural barriers and seeking commonality in Chinese and Western eating cultures Ecosystem Role:Value contributors suppliers,complementors,vertical integrator“I dont see anyone as competitors in the marketbecause we are all doing the s