Abstract
Legendary Chinese firms have employed e‐business strategies to strengthen their competitive positions in China for market expansion since the late 1990s. E‐business practices have resulted from the convergence of digital technology, intellectual property and customer supremacy. Such convergence is transforming the “old” industrial economy, which was built primarily on tangible assets, standardization, and stand‐alone players, into a “new and virtual” economy, which is being based primarily on intangible assets, customization, and connected players. E‐business requires an integrated alignment of technology, operation, strategy, structure, and human interaction in a continuously expanding network. Consequently, e‐business facilitates a new system—the Paradigm of Network Capitalism, which removes the boundaries of space, time, organization and individuals, and creates virtual communities of stakeholders with new demands for product/service and shared interest and cooperation.