Entrepreneurship as a global coordinator: The Li & Fung Group

Abstract

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