A Research on Critical Factors Affecting Taiwanese Information Technology Manufacturers’Investment in China

• Main Authors: Lin Chieh-Meng, 林捷盟
• Other Authors: Dr.Yu-Chung Hung
• Format: Others
• Language: en_US
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/37879442779802763113

碩士 === 大同大學 === 事業經營研究所碩士在職專班 === 91 === Information technology industry has long been playing an important role for Taiwan’s admiring economic growth over past two decades. However, China as a new arrival of IT product output base surpassed Taiwan’s position since 2000 and moving the manufacturing base to China appears to be an irresistible wave for Taiwan’s manufacturers no matter how government and some interest groups keep sending the warning message. This paper, therefore, attempts to outline the factors and its significance affecting company’s managerial level when it comes to selecting China as their investment country. Based on literature review and previous empirical study, 26 variables are designed in a questionnaire for factor analysis. The survey objects are managers or higher-level directors working for IT companies listed in Taiwan Stock Exchange or TAISDAQ market. As a result, out of 180 questionnaires sent and 68 valid copies returned at return ratio of 37.7%. This research uses factor analysis program of SPSS statistical software to apply Varian rotation on the 26 variables using principle component analysis. After reliability test, 7 factors are concluded as (1) investment environment and infrastructure; (2) cost-saving; (3) encouraging tax and incentive policy; (4) access to China’s huge market; (5) stability in society and politics; (6) similar cultural root and language; (7) industrial clustering effect. The above-mentioned factors, after binary logistic regression analysis, show that only cost-saving factor has a significant effect on our sampling higher management’s advice giving and decision-making. The purpose of this paper is to point out key factors that affect Taiwanese information technology makers’ investment in China, and the research results could also serve as a reference for industrial policymaking and further investment decision-making.