Existing research ignores to test how firms affiliated with business groups both use local network resources inside and outside the group to internationalize.We pick out 156 firms affiliated with a business group of China and examine the relationship between local network resources inside and outside a business group and internationalization.The results show that local network resources inside a business group and local network outside a business group both have a significantly positive relationship with internationalization.We also found that these positive relationships disappear when affiliated firm adopts agency businesses for foreign firms and have higher international experience.