Abstract: Abstract: There are two views in previous work of firm upgrading :the one perspective focuses on the internal resources of the firms, the other perspective focuses on the external network environment as network resources. Based on resource theory and network theory, this paper explores relationship between resources, global network tie and upgrading of local firms. The empirical research shows basic resources and organizational resources have significant positive influences on the upgrading of local firms, business embeddedness has a positive moderating effect on the relationship between resources and upgrading, while positive effect of global network ties on the upgrading is not found. The findings of this study provide some guidance for the resources accumulation and network construction．