The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms
碩士 === 國立成功大學 === 企業管理學系碩博士班 === 91 === This paper evaluates the local performance and impact of Taiwanese FDI firms’ localization in China. The survey includes many Taiwanese FDI firms that are located in Zhu-Jiang Delta, Chang-Jiang Delta, central and west provinces. Taiwanese FDI trends have shif...
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ndltd-TW-091NCKU51210552015-10-13T17:07:02Z http://ndltd.ncl.edu.tw/handle/43036296522552537378 The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms 台商直接投資大陸當地化程度對當地績效的影響之研究--以中小企業為例 Chiu-Chun Kuo 郭秋君 碩士 國立成功大學 企業管理學系碩博士班 91 This paper evaluates the local performance and impact of Taiwanese FDI firms’ localization in China. The survey includes many Taiwanese FDI firms that are located in Zhu-Jiang Delta, Chang-Jiang Delta, central and west provinces. Taiwanese FDI trends have shifted from labor intensive model to a capital intensive model considered when designing industry specific statistic random sampling Six hundred survey questionnaires were sent to Taiwanese FDI firms based on stratified sampling from the list of Taiwanese Investment Enterprises(Published by the Taiwan Business Association in China), one hundred fifteen questionnaires were retrieved. After statistic regression models, with dependent variables to analyze the dependence of interaction relationship between Strategic Network Linkage, Organization Interdependence, local resource and local market, would be conducted. Also, this paper would investigate the impacts and performances of Taiwanese FDI firms’ localization. The results of this research are listed below: 1.The initial Taiwanese FDI global strategies for cost reduction, maintaining the international supply chain competitiveness has changed to localization strategies for utilizing local resource and developing the domestic market. 2.The effect of China’s entry to the WTO has benefited China’s domestic market. Taiwanese FDI firms have gradually modified their business strategies and developed domestic market. The research also finds that the domestic sales of the capital intensive industry are less than labor intensive industry. The reasons are listed below: A.At early stages of FDI in China, China was a labor intensive industry that strictly controlled the proportion of domestic sales from these FDI firms. This was done in order to protect their own firms which were less competitive than these FDI firms. Even though China had joined WTO in 2001, China’s government didn’t buildup a sound trading regulation to protect knowledge or intelligent property. Since it is still too risky to expand domestic sales for these FDI firms, the proportion of domestic sales is still low. B.The FDI in China had changed from labor intensive industries to capital intensive since 2000. China authorities started to focus on the development of technology capabilities. These high tech industries had less impact on their own country which produced people’s living expenses. In order to push these FDI firms to bring in high tech know-how, China’s strategy was “use domestic sales to exchange know-how” and that’s why these FDI firms could gain higher proportion of domestic sales and expand domestic market. 3.FDI firms have less domestic purchase ratio since China has “Purchase Contract” and domestic sales control, furthermore they do worry about the qualities of local material supply might lower their product quality level. 4.There is trend for these Taiwanese FDI firms to recruit local people into their management team, many intermediate level management occupations are taken by China local people which causes less demand of Taiwanese expatriation and less jobs for Taiwanese in China. 5.More and more Taiwanese FDI firms have put their R & D department in China and announce localization is their business competence. 6.Even though Small and Medium sized firms don’t have enough capital and resource to perform international investment and business integration, they have more flexibility than Big-sized enterprises, which benefits them in the way of market share gain and performance. Sui-Cho Chang 張淑昭 2003 學位論文 ; thesis 83 zh-TW |
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碩士 === 國立成功大學 === 企業管理學系碩博士班 === 91 === This paper evaluates the local performance and impact of Taiwanese FDI firms’ localization in China. The survey includes many Taiwanese FDI firms that are located in Zhu-Jiang Delta, Chang-Jiang Delta, central and west provinces. Taiwanese FDI trends have shifted from labor intensive model to a capital intensive model considered when designing industry specific statistic random sampling
Six hundred survey questionnaires were sent to Taiwanese FDI firms based on stratified sampling from the list of Taiwanese Investment Enterprises(Published by the Taiwan Business Association in China), one hundred fifteen questionnaires were retrieved.
After statistic regression models, with dependent variables to analyze the dependence of interaction relationship between Strategic Network Linkage, Organization Interdependence, local resource and local market, would be conducted. Also, this paper would investigate the impacts and performances of Taiwanese FDI firms’ localization. The results of this research are listed below:
1.The initial Taiwanese FDI global strategies for cost reduction, maintaining the international supply chain competitiveness has changed to localization strategies for utilizing local resource and developing the domestic market.
2.The effect of China’s entry to the WTO has benefited China’s domestic market. Taiwanese FDI firms have gradually modified their business strategies and developed domestic market. The research also finds that the domestic sales of the capital intensive industry are less than labor intensive industry. The reasons are listed below:
A.At early stages of FDI in China, China was a labor intensive industry that strictly controlled the proportion of domestic sales from these FDI firms. This was done in order to protect their own firms which were less competitive than these FDI firms. Even though China had joined WTO in 2001, China’s government didn’t buildup a sound trading regulation to protect knowledge or intelligent property. Since it is still too risky to expand domestic sales for these FDI firms, the proportion of domestic sales is still low.
B.The FDI in China had changed from labor intensive industries to capital intensive since 2000. China authorities started to focus on the development of technology capabilities. These high tech industries had less impact on their own country which produced people’s living expenses. In order to push these FDI firms to bring in high tech know-how, China’s strategy was “use domestic sales to exchange know-how” and that’s why these FDI firms could gain higher proportion of domestic sales and expand domestic market.
3.FDI firms have less domestic purchase ratio since China has “Purchase Contract” and domestic sales control, furthermore they do worry about the qualities of local material supply might lower their product quality level.
4.There is trend for these Taiwanese FDI firms to recruit local people into their management team, many intermediate level management occupations are taken by China local people which causes less demand of Taiwanese expatriation and less jobs for Taiwanese in China.
5.More and more Taiwanese FDI firms have put their R & D department in China and announce localization is their business competence.
6.Even though Small and Medium sized firms don’t have enough capital and resource to perform international investment and business integration, they have more flexibility than Big-sized enterprises, which benefits them in the way of market share gain and performance.
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author2 |
Sui-Cho Chang |
author_facet |
Sui-Cho Chang Chiu-Chun Kuo 郭秋君 |
author |
Chiu-Chun Kuo 郭秋君 |
spellingShingle |
Chiu-Chun Kuo 郭秋君 The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms |
author_sort |
Chiu-Chun Kuo |
title |
The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms |
title_short |
The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms |
title_full |
The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms |
title_fullStr |
The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms |
title_full_unstemmed |
The Localization of Taiwanese Foreign Direct Investment in China:Performances and Impacts-Focus on Small and Medium-sized Firms |
title_sort |
localization of taiwanese foreign direct investment in china:performances and impacts-focus on small and medium-sized firms |
publishDate |
2003 |
url |
http://ndltd.ncl.edu.tw/handle/43036296522552537378 |
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