A Case Study of Business Borderless Development in Internet Age

LI Haijian and CHEN Xiaoyong

Institute of Industrial Economics, Chinese Academy of Social Sciences, Beijing, China

Abstract: A firm may expand in two ways: by tangible expansion through an increase in the scale of the physical company, or by intangible expansion, an optimization process
drawing on both the firm’s physical entity as well as virtual resources, producing borderless growth. We take a case study approach to explore borderless development at business, managerial, and operational levels and to study four facilitators of borderless development: information technology, the virtual world, virtual operations, and concentration on core business. We conclude that firms may achieve global dominance in their area of core competency through borderless development.

Key words: borderless development, virtual operation, core competency, corporate re-construction

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