An exploratory study on market development towards the Global South (全球南方) by HK enterprises: for MBA students (information from perplexity.ai)
My question 1: "What is market development by Hong Kong enterprises towards the Global South all about with reference to the subject of International Business?"
The reply: "Market development by Hong Kong enterprises towards the Global South in the context of International Business primarily involves leveraging Hong Kong’s strategic position as a global business hub and a bridge between China, Asia, and emerging markets in the Global South—including regions such as ASEAN countries, the Middle East, Central Asia, South Asia, North Africa, and Latin America. This development strategy includes expanding trade networks, attracting investment, and establishing regional or international headquarters in Hong Kong to manage offshore trading and multinational supply chain operations.
Key elements of this market development approach include:
Using Hong Kong as a platform: Hong Kong's favorable business environment, legal system, tax regime, world-class professional services, and connectivity make it an attractive springboard for enterprises, particularly Mainland Chinese companies, to expand into Global South markets.
One-stop advisory and support services: Organizations like InvestHK and the Hong Kong Trade Development Council (HKTDC) provide comprehensive support including market research, legal and regulatory guidance, ESG training, export credit insurance, and business matching services tailored to help enterprises penetrate emerging economies in the Global South.
Focus on Belt and Road Initiative (B&R): Hong Kong actively promotes collaboration with countries along the B&R routes, enhancing trade and investment ties. This involves promoting green development, innovation and technology cooperation, and participation in flagship summits and expos that link Hong Kong enterprises with Global South partners.
Engaging new and diverse markets: Strategic efforts seek to strengthen economic relationships with ASEAN nations (now Hong Kong’s second-largest goods export market), Middle Eastern countries, and others in the Global South, reflecting a shift from traditional Western markets to faster-growing emerging markets.
Supporting SMEs and multinational corporations: Both small and medium-sized enterprises (SMEs) and larger multinational companies benefit from Hong Kong’s infrastructure and government initiatives, making it easier for them to establish regional headquarters, respond to global tariff changes, and optimize supply chains internationally with Hong Kong as their base.
In summary, Hong Kong’s market development towards the Global South under the subject of International Business revolves around its role as a “super connector” and value-adding hub that facilitates the expansion of Hong Kong and Mainland enterprises into emerging Global South markets through trade, investment, supply chain management, and bilateral cooperation frameworks."
My question 2: "What are the theories to study this topic?"
The reply: "To study the topic of market development by Hong Kong enterprises towards the Global South in International Business, several theoretical approaches are relevant:
International Business Theories: These include frameworks that analyze multinational enterprises (MNEs) and their international expansion strategies, such as the Eclectic Paradigm (OLI framework), Internalization Theory, and Network Theory. These theories help explain why and how firms enter and develop markets abroad, including emerging markets in the Global South.
Development Theories with a Global South Perspective: These emphasize the unique economic, political, and social conditions of Global South countries, highlighting issues like economic inequality, underdevelopment, and South-South cooperation. Concepts include critiques of the Washington Consensus, the role of Foreign Direct Investment (FDI), and strategies for sustainable development beyond dependence on Western markets.
Emerging Market and South-South Cooperation Frameworks: These theories focus on the increasing importance of emerging markets from the Global South as both sources and destinations of investment and trade, underscoring new patterns of cooperation, such as BRICS and Belt and Road Initiative strategies, where Hong Kong plays a facilitator role.
Internationalization and Market Development Models: These explore how firms expand mature products and services into new international markets, covering market entry modes, strategic adaptation, and leveraging regional hubs like Hong Kong for operations in the Global South.
In sum, studying this topic involves a combination of classic international business theories focused on firm behavior in foreign markets, alongside development-focused theories that address the broader global economic and political context of the Global South. This integrated theoretical lens helps explain Hong Kong enterprises’ strategies in market development toward these regions."
My question 3: "What are the research gaps and issues on this topic?"
The reply: "The main research gaps and issues on the topic of market development by Hong Kong enterprises towards the Global South in International Business include several interconnected challenges:
Adapting to Global Supply Chain Changes: Hong Kong enterprises face uncertainty due to geopolitical tensions such as the China-US trade war and rising production costs, which lead to supply chain remodelling and adoption of strategies like "China+1." Research is needed on how Hong Kong firms can effectively manage complex, dispersed supply chains involving multiple countries in the Global South.
Customization vs. Scale: There is a gap in understanding how Hong Kong companies can transition from traditional large-batch production to flexible, small-volume, highly customized production demanded by emerging market consumers, often located in the Global South. Exploring operational models to optimize such production while maintaining cost-efficiency and quality is an area needing attention.
Sustainability and Green Manufacturing: Increasing customer and regulatory demands for sustainability pose challenges. Research is needed on how Hong Kong enterprises can integrate green production and ESG (Environmental, Social, Governance) standards in their operations targeting the Global South, which may have differing regulatory environments and levels of infrastructure development.
Innovation Capacity and Integration: While Hong Kong plays a pivotal role in innovation and as a regional business hub, there are gaps in the development and coordination of innovation policies that can support enterprises’ internationalization towards the Global South, particularly under initiatives such as the Greater Bay Area. Studies on cross-border collaboration, technology transfer, and innovation network effects are limited.
Market-Specific Strategies for the Global South: Existing theories often draw from traditional international business perspectives focused on developed markets or emerging markets broadly. There is a lack of granular research on specific Global South countries’ market conditions, institutional frameworks, and how Hong Kong enterprises adapt to these unique contexts.
SME Challenges and Support Mechanisms: Small and medium enterprises in Hong Kong face distinct barriers in scaling and internationalizing to Global South markets. Research gaps involve evaluating the effectiveness of government support services, financial products, and advisory for SMEs to overcome these hurdles.
Impact of Belt and Road Initiative (BRI): While BRI is a major channel for Hong Kong enterprises’ expansion in the Global South, detailed empirical studies on its actual impact, risks, and opportunities for different sectors remain sparse.
In summary, research gaps largely center on how Hong Kong enterprises can adapt their business models, innovation capabilities, supply chain management, and sustainability practices specifically for the diverse and evolving markets of the Global South, alongside better understanding of policy support and geopolitical influences."
My question 4: "What are the Hong Kong public media-reported issues on this topic over the past 5 years?"
The reply: "Hong Kong public media over the past five years have reported several key issues regarding market development by Hong Kong enterprises towards the Global South, particularly through the lens of the Belt and Road Initiative (BRI):
Government and Policy Support: Hong Kong government actively promotes the city’s full participation in the Belt and Road Initiative as a functional platform connecting Mainland China with Global South markets. Press releases highlight sustained efforts in opening new markets, reinforcing bilateral and multilateral economic and trade relationships along Belt and Road countries, including the Middle East and ASEAN regions.
High-Quality Development and Collaboration: Media report underscore continuous government focus on advancing high-quality development in trade, professional services, finance, and innovation under the BRI framework. Hong Kong seeks to deepen cooperation with Mainland ministries to leverage its distinctive advantages as a "super-connector" between China and global emerging markets.
Challenges Related to Economic and Geopolitical Changes: Hong Kong enterprises face uncertainties due to global geopolitical tensions and supply chain disruptions, with a need for adapting business models to new realities—topics discussed in forums and media addressing the ongoing impacts of trade wars and economic shifts within BRI countries.
Sustainability and Green Finance: There is increasing media attention on the integration of green finance and sustainability initiatives within Hong Kong’s BRI activities, aligning with global trends and regulatory demands for ESG compliance in overseas projects.
Media and Think Tank Cooperation: Hong Kong media participate in international cooperation mechanisms such as the Belt and Road Media Community and various forums that foster exchange of information, which are reported to enhance understanding of both opportunities and challenges across BRI countries.
Capacity Building and Talent Development: Reports emphasize efforts in talent training, professional exchanges, and capacity building to sustain Hong Kong enterprises’ competitiveness in Global South markets related to BRI projects.
Impact of COVID-19 and Adaptation: Media narratives also include the pandemic’s impact, with Hong Kong leveraging online summits and virtual cooperation mechanisms to continue promoting the Belt and Road cooperation despite travel restrictions and economic uncertainties.
In summary, Hong Kong public media reflect a narrative of proactive government facilitation paired with business sector challenges amid shifting global trade environments, emphasizing the strategic importance of the Belt and Road Initiative as a framework for Hong Kong enterprises’ market development towards the Global South. These issues include geopolitical risks, sustainability, innovation, capacity building, and digital/virtual cooperation modes."
My question 5: "Propose 4 related research objectives and 2 related research issues on this topic for a part-time MBA dissertation project with a duration of 4 months. Also suggest 2 primary research methods and 1 secondary research method for this project based on pragmatism."
The reply: "For a part-time MBA dissertation project of 4 months on market development by Hong Kong enterprises towards the Global South in International Business, here are four related research objectives and two research issues, along with suggested research methods based on pragmatism:
Research Objectives
To examine the role of Hong Kong as a strategic platform facilitating market entry for enterprises targeting the Global South, with a focus on supply chain management and regional headquarters establishment.
To analyze how Hong Kong enterprises adapt their business models and innovation capabilities to meet the unique demands and regulatory environments of Global South markets.
To evaluate the effectiveness of Hong Kong government support mechanisms (such as InvestHK and HKTDC) in assisting enterprises, particularly Mainland Chinese SMEs, in their internationalization towards the Global South.
To identify key sustainability and ESG integration practices among Hong Kong enterprises operating in the Global South and assess their impact on market development and partner relationships.
Research Issues
The challenge of managing geopolitical risks and global supply chain disruptions in the context of expanding Hong Kong enterprises’ presence in diverse Global South markets.
The gap between traditional large-scale production and the increasing demand for customization and innovation in Global South markets, and how Hong Kong enterprises navigate this transition.
Suggested Research Methods (Pragmatism Approach)
Primary Research Methods:
Semi-structured interviews with executives and managers of Hong Kong enterprises involved in Global South market development to gather insights on strategic adaptations, challenges, and government support.
Case study analysis of selected Hong Kong companies operating in the Global South, focusing on their market entry strategies, supply chain practices, and ESG initiatives.
Secondary Research Method:
Document and policy analysis of government reports, industry publications, and media coverage on Hong Kong’s international business policies, Belt and Road Initiative activities, and market development trends.
This mixed-method approach aligns with pragmatism by combining qualitative primary data with contextual secondary data to provide actionable insights and a comprehensive understanding of the topic within the limited timeframe of a part-time MBA project."
My question 6: "Comment on the originality, academic and practical values of this study. Also comment on the research ethics issues involved in this study."
The reply: "The study on market development by Hong Kong enterprises towards the Global South has notable originality, academic value, and practical relevance:
Originality: The study focuses specifically on Hong Kong enterprises' strategic role and challenges as a "super connector" between China and emerging Global South markets, an area that remains underexplored in mainstream international business literature, which often centers on Western or major emerging economies rather than Hong Kong’s unique intermediary position and its ties with diverse Global South regions. By integrating aspects like Belt and Road Initiative participation, supply chain adaptation, innovation, sustainability, and government support, it offers a novel and focused contribution to understanding market development in this nuanced context.
Academic Value: It addresses significant research gaps by bridging classic international business theories with development and emerging market perspectives relevant to the Global South and offering granular insights into Hong Kong enterprises’ strategies. This includes empirical insights on how these firms manage geopolitical risks, supply chain challenges, and sustainability requirements, thereby enriching literature on internationalization, South-South cooperation, and innovation in emerging markets. The mixed-method research design combining primary qualitative data and secondary policy analysis also strengthens its methodological contribution.
Practical Value: The study has direct implications for policymakers, business leaders, and support organizations in Hong Kong by evaluating the effectiveness of government initiatives (e.g., InvestHK, HKTDC), recommending strategies for adaptation to Global South market requirements, and highlighting sustainability and ESG practices. Its findings can inform improvements in policy frameworks, enterprise internationalization strategies, and cross-border innovation collaborations, aiding Hong Kong’s efforts to leverage its strategic platform role amid global economic shifts.
Regarding research ethics issues involved:
Informed Consent and Confidentiality: Conducting semi-structured interviews and case studies demands obtaining informed consent from participants, ensuring they understand the purpose, usage, and potential risks of the research. Participants’ identities and sensitive business information should be kept confidential to protect privacy and proprietary data.
Avoiding Bias and Ensuring Integrity: Given the interaction with business executives and government-linked enterprises, the researcher must minimize bias by maintaining neutrality, accurately representing participants’ inputs, and avoiding conflicts of interest or undue influence from stakeholders.
Cultural Sensitivity and Respect: The research engages with diverse markets and stakeholders from the Global South with varied regulatory, social, and cultural contexts. Respect and sensitivity towards local norms and ethical standards in data collection and reporting are critical.
Responsible Use of Secondary Data: When analyzing government reports, media, and policy documents, proper citation and respect for intellectual property rights must be observed.
In summary, this study is both innovative and valuable academically and practically, with ethical considerations centering on informed, respectful, and confidential engagement with participants and responsible data handling consistent with academic research standards."
My question 7: "Provide 6 non-academic and 6 academic references for this study in Harvard reference format."
The reply: "Here are 6 non-academic and 6 academic references in Harvard format relevant to the study of market development by Hong Kong enterprises towards the Global South:
Non-Academic References
Hong Kong Special Administrative Region Government, 2017. The Belt and Road Initiative. [pdf] Available at: https://www.beltandroad.gov.hk/doc/en/the-belt-and-road-initiative-en.pdf [Accessed 9 August 2025].
Hong Kong Business, 2025. Hong Kong strengthens ties with Global South markets. [online] Available at: https://hongkongbusiness.hk/economy/news/hong-kong-strengthens-ties-global-south-markets [Accessed 9 August 2025].
Hong Kong Economic Report, 2023. First Quarter Economic Report 2023. [pdf] Available at: https://www.hkeconomy.gov.hk/en/pdf/er_23q1.pdf [Accessed 9 August 2025].
Hong Kong General Chamber of Commerce, 2019. International Business Summit 2024 - The Bulletin. [online] Available at: https://www.chamber.org.hk/en/information/the-bulletin_detail.aspx?id=1398 [Accessed 9 August 2025].
Commerce and Economic Development Bureau, 2024. Assisting innovation and technology enterprises in developing Belt and Road markets. [online] Available at: https://www.info.gov.hk/gia/general/202412/18/P2024121800283.htm [Accessed 9 August 2025].
DHL Discover, 2024. A Comprehensive Guide for SMEs Expanding Internationally. [online] Available at: https://www.dhl.com/discover/en-hk/small-business-advice/growing-your-business/global-expansion-simplified-a-guide-for-smes [Accessed 9 August 2025].
Academic References
Heiwai, C., 2023. Urgent Priority for Hong Kong's Economic Repositioning in 7 Key Areas. Asia Global Institute, The University of Hong Kong. [pdf] Available at: https://www.asiaglobalinstitute.hku.hk/storage/app/media/APAC%20Study%20Center/Heiwai/231018-urgent-priority-for-hong-kongs-economic-repositioning-in-7-key-areas-e.pdf [Accessed 9 August 2025].
Wu, B., 2020. Internationalization of SMEs from emerging markets. Journal of Business Research, [online] Available at: https://www.sciencedirect.com/science/article/abs/pii/S0148296319306253 [Accessed 9 August 2025].
Lim, H. and Kimura, F., 2010. The Internationalization of Small and Medium Enterprises in Regional and Global Value Chains. Asian Development Bank Institute Working Paper. [pdf] Available at: https://www.adb.org/sites/default/files/publication/156086/adbi-wp231.pdf [Accessed 9 August 2025].
Ng, I. and Jiang, Z., 2021. Belt and Road Initiative, globalization and institutional changes. Asia Pacific Journal of Management. [pdf] Available at: https://mgmt.hkust.edu.hk/sites/management/files/2022-09/APJM_earlyview2021_BeltAndRoadInitiativeGlobaliza.pdf [Accessed 9 August 2025].
PWC Hong Kong, 2023. Paving the way forward for Hong Kong with confidence and vision. [pdf] Available at: https://www.pwchk.com/en/research-and-insights/hksar-policy-address-sep2023.pdf [Accessed 9 August 2025].
Hong Kong Legislative Council Panel on Commerce and Industry, 2023. For discussion on 20 June 2023 Legislative Council Panel on Commerce and Industry paper. [pdf] Available at: https://www.legco.gov.hk/yr2023/english/panels/ci/papers/ci20230620cb1-661-5-e.pdf [Accessed 9 August 2025].
These references provide a balanced mix of government reports, media publications, policy documents, and peer-reviewed academic research that will support a comprehensive study of Hong Kong enterprises’ market development towards the Global South."
A collection of blog notes on using chatgpt for research purpose.
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