The Study on Investment Strategies of Taiwanese Textile Industry in China

• Main Authors: Chien-Ting Kuo, 郭建廷
• Other Authors: Fu-Yann Duh
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/x7tj5h

碩士 === 國立成功大學 === 高階管理碩士在職專班 === 90 === Textile industry was the first industry moving out from Taiwan to invest in Mainland China, and the total number of investing firms is also the highest among all industries. Due to the severe competition in the global market, the advantage of low labor cost is no longer existing in Taiwan, on the other hand, Mainland China has sufficient low cost labors, and provides preferential encouragement to investors as well. In addition, the potential of Mainland China local market also is attracting investors to be there. This research aimed at the Taiwanese firms of textile industry investing in Mainland China during the late two decades; by analyzing different strategies they adopted, we can explore the relationship among performance and those important factors. This research is based on 120 Taiwanese textile firms that invested in Mainland China as our samples. According to literature review, four important dimensions affected strategies for investing in Mainland China, including investment motivations, industrial characteristics, firm-specific advantages and host country characteristics. The investment strategies can be divided into entry mode, entry sequence, entry areas and different stages of textile manufacturing process (upstream, midstream, downstream). This research was using statistical methods to analyze those data, and we hoped the findings could be reference for textile industry. From this research, it reveals 102 textile firms (85%) of total sampling adopted wholly owned business to be as their entry mode. The Taiwanese textile investors are clustering in four areas, including Guang-Dong province, Jiang-Su province, Fu-Jian province and Zhe-Jiang province. When investors’ main concerns are reducing the labor cost or possessing technology and management ability will tend to be wholly-owned business. With good relationship network or perceiving high political risk of host country, the firms will tend to adopt joint venture. The late entrants pay more attention to Mainland China local market than early entrants, and also have higher culture value identity than early entrants. Meanwhile, the down stream of textile firms have better bargain power and higher culture value identity than the up and mid streams. Through regression analysis, entry sequence, entry areas and firm size have no significant effects on performance, and only different stages of textile manufacturing process will significantly affect performance. The down stream of process has better performance than mid and up streams, and there are no significant differences between mid and up streams.