The Power Flow and System Integration of High Tech Industry: The Case of TFT-LCD and Foxconn-Innolux Group

• Main Authors: Chang Ke-Wei, 張格維
• Other Authors: Chou Tsu-Lung
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/94224911031289943427

碩士 === 國立臺北大學 === 都市計劃研究所 === 96 === The theory of developmental state that emphasizes the key effect of the state has neglected the roles of the firm, especially the influences of global firms on the global production networks (GPN). In this regards, this research pays special focus on the firms so as to understand the relationships between local firms and GPN, as well as the internal operation logic of GPN under the globalized economies. However, during the process of theory reviewing, this research discovers many defects in the theories especially regarding two issues: (1) power relations between firms, and (2) the organization structures and industrial upgrading. This research argues that certain ideology exists within these theories resulting in their biased explanations of the real world. For this reason, this research focuses on the subjects of “flows of power among firms” and “system integration” of organization structures. By using the development of FOXCONN-Innolux Group, world’s largest EMS (Electronic Manufacturing Service) firm, in the TFT-LCD industry as the studying case, this research attempts to clarify and revise the defects of existing theories. According to the research findings, the global commodity chain (GCC) and its related theories that advocate the governance and the producer/buyer-driven structures, would have biases in their descriptions of present situation. The main reason is that, these theories neglect the “dynamic evolutionary processes of the real world” and “the mutual competition between horizontal firms”. Therefore this article would like to revise these theories and propose a description that would conform more precisely to the real world. First, this research derives two power structures, “Structure Power” and “Cycle Power”, from the inter-firm relationships, and discusses the flows of power and the relations between the two structures. This research then proposes a “Global Commodities Pipe, GCP” framework to describe and explain the trade, competition, and the changes of organization structures of firms in the GPN. Finally, this research argues that the flows of power will gradually reach a stable condition in the end, and will become a temporary stable structure- this is the operation logic of the Dynamic Balance of Power of the GCP.