Strategic alliances of China and Hong Kong in manufacturing and their impact on global competitiveness of Hong Kong manufacturing industries

Hong Kong is facing severe competition and increasing rivalry from the East Asian countries. In order to face these formidable challenges and to seize the opportunities that are available in the global marketplace of the twenty‐first century, Hong Kong manufacturing industries need to implement strategies to become globally competitive. In this paper, the dimensions of global competitiveness and the core competitive strengths of Hong Kong and China are identified and the corresponding hypotheses are formulated. A questionnaire survey conducted to collect and analyze the surveyed data examined the support for these hypotheses. Then the generalized double diamond model is used to analyze the global competitiveness and to recommend the competitive strategies for Hong Kong manufacturing industries. The survey results and the subsequent analysis indicate that Hong Kong manufacturers should integrate Hong Kong’s core competitive strengths with China’s core competitive strengths, and combine them with foreign technologies, management know‐how and global market knowledge to strengthen their global competitiveness.