The Foreign Direct Investment Configuration of TaiwaneseManufacturing Corporations in China-The Market Scope & Business Model Perspectives

碩士 === 國立臺灣大學 === 商學研究所 === 99 === With the rapidly growth of Mainland China, foreign direct investment in China has become the main economic activity for Taiwanese manufacturing firms recently. In the past, Mainland China was often called “World Factory” due to the lower labor cost. But with the gr...

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Bibliographic Details
Main Authors: Wen-Ting Chen, 陳玟婷
Other Authors: Ruey-Shan Guo
Format: Others
Language:zh-TW
Published: 2011
Online Access:http://ndltd.ncl.edu.tw/handle/93755921618109213191
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Summary:碩士 === 國立臺灣大學 === 商學研究所 === 99 === With the rapidly growth of Mainland China, foreign direct investment in China has become the main economic activity for Taiwanese manufacturing firms recently. In the past, Mainland China was often called “World Factory” due to the lower labor cost. But with the gradually growth of GDP increases and purchasing power increases, Mainland China is remarked to be a market with great potential. With revised focus on that, it’s a significant issue for Taiwanese manufacturing firms to learn how to choose the most appropriate strategy leading to competitive advantage and great profit. According to foreign investment literature and international subcontracting theory, this study develops a matrix with two strategic dimensions: market scope and business model. From this two dimensions, the investment configuration of Taiwanese manufacturing firms can be categorized into four types: (1) World Factory, (2) Global Brand, (3) Local Label and (4) Regional Plant. Besides, based on resource-based and eclectic theory, this research proposes a strategic thinking consisting three constructs, which are “investment strategy”, “operation strategy” and “configuration strategy”. Investment strategy emphasizes on the analysis of enterprise’s investment purpose. Strategic viewpoint and investment motivation are selected as main criteria for the first construct. In the second construct, core competence is selected for evaluating integrated resource utilization efficiencies of firms and the business model is selected for explaining the firms’ operating activities. In the last construct, location choice and scattering feature are used to represent the practical conduct of the enterprise. This research uses the case study method to analyze the key successful factors of the four chosen enterprises in different criteria in order to make this framework more practical and useful. The research concludes that Taiwanese manufacturing firms are supposed to enhance their core competence within each business model while reconsidering their roles in each value chain with global thinking perspectives. Taiwanese manufacturing firms can select the locations prone to not only increase their operating effectiveness, but also to increase the probability of successful investment in China.