Technology and innovation: The connection of social and technological networks in China

This chapter deals with the speed to market as one of the most important competitive advantages in nowadays' markets. Responsiveness requires information sharing among all members across the supply chain and thus how to facilitate channel coordination is a major problem to address. Enterprise resource planning (ERP) systems have been employed to deal with this issue by re-engineering the supply chain. This Chapter addresses the issue of guanxi creation that is inherently based on an individual's knowledge and social networks to the technological implementation in the Chinese firm. An ERP system, that is based on access to technological networks based on Western business culture leading to potential conflict if implemented without cultural sensitivity as China is based on social business networks. There is a need to balance these two networks if harmony and business success is to be achieved.