Production Mode, Business Strategy, and Financial Performance of the Golfhead Industry in Taiwan

• Main Authors: Mei-Yun Lin, 林美雲
• Other Authors: Shih-Mo Lin
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/91727136182687496085

碩士 === 中原大學 === 國際貿易研究所 === 94 === Taiwan has been famous by its capability of OEM since the early 1980s. However, the fast transition of economic structure and the significant rise in labor cost in recent years have put Taiwan in the forefront facing challenges of market competition and sustainability. The purpose of this study is to explore the relationship between production strategy and business performance for Taiwan’s golfhead industry. It has become an important issue for companies in the golfhead industry to adjust their business strategies to cope with the situation of changing market structure and economic environment. And a clearer realization of the relationship between business strategy and financial performance in the industry is the key in making right adjustments. We use Principal Component Analysis and panel data regression models to examine the relationships between production mode, business strategy, and financial performance for four major companies in the industry. The results of the analysis are as follows. 1.New technology and business strategy do have significance positive impact on overall financial performance. 2.Acquisition and merge with a core company of the industry has shown to have positive effect on company’s financial performance. 3.The sales and profits of the companies are bound up with orders from foreign company closely. 4.R&D activities are helpful to the financial performance of the companies. 5.High percentage of highly-educated employees leads to higher financial performance.