A Research on Business Dynamic Capability and Competitive Advantage：An Example of Taiwan Automobile Component Manufacturers Entering into China

• Main Authors: Ho wen sung, 何文松
• Other Authors: Chang, Hui-Chen
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/58103968700283292764

碩士 === 國立臺北大學 === 企業管理學系 === 99 === More and more multinational corporations are not only taking emerging countries as a set-up location for factories, but also realizing their market potential while drawing up coping responses to develop in these unfamiliar and turbulent host countries (Lee, 2010). China’s rapid emergence stands out among these contries. The car industry in China has become the biggest production base and market in the world and thus significantly attracts global main brand auto companies. Therefore, Taiwan auto parts supply chain vendors should as well equip their advantages of geography, culture and language, adjusting strategies in time to enter this highly growing and competitive worldclass market. The main purpose of this research is to probe into the dynamic capability and China-bound competitive advantage of Taiwan auto parts supply chain vendors. Dynamic capability is a concept that is both important and complicated, while being an essential core issue for the research of business development and advantages of competitive strategies (Zahra et al., 2006). This research will use the dynamic capability framework brought up by Teece et al.(1997) to discuss China-bound Taiwan auto parts supply industry’s advantages. “Market turbulence” “Technological turbulence” and “Competitive intensity” will be used as moderators to discuss the impacts these changing factors made to dynamic capability and competitive advantage. After a survey of Tier 1 and Tier 2 manufacturers in Taiwan auto parts supply chain , the result shows that the vendors’ dynamic capability has a positive and significant impact on China-bound competitive advantage. However, after we add factors of environmental change, market turbulence significantly weakened the relation between firms’ dynamic capability and competitive advantage, while technological turbulence significantly strengthened the relation between dynamic capability and competitive advantage, and competitive intensity insignificantly weakens the relation between dynamic capability and competitive advantage. Consequently, in order to maintain their competitive advantage, firms should integrate, comprehend, and rearrange internal resources actively while drawing up business strategies, and continue the past development route while proactively searching for opportunities in new markets.