What Permits Small Firms to Compete in High-Tech Industries? Inter-Organizational Knowledge Creation in the Taiwanese Computer Industry

This paper addresses a puzzle related to firm size and competition. Since Stephen Hymer´s pioneering contribution (Hymer, 1960/1976), theories of the firm implicitly assume that only large, diversified multinational enterprises can compete in industries that combine high capital intensity, high knowledge-intensity and a high degree of internationalization. Small firms, by definition, have limited resources and capabilities and are unlikely to possess substantial ownership advantages. They also have a limited capacity to influence and shape the development of markets, market structure and technological change. One would thus expect that they are ill-equipped to compete in a knowledge-intensive industry that is highly globalized. Taiwan’s experience in the computer industry tells a different story: despite the dominance of small- and medium-sized enterprises (SMEs), Taiwan successfully competes in the international market for PC-related products, key components and knowledge-intensive services. The paper inquires into how this was possible. It is argued that organizational innovations related to the creation of knowledge are of critical importance. Taiwanese computer firms were able to develop their own distinctive approach: due to their initially very narrow knowledge base, access to external sources of knowledge has been an essential prerequisite for their knowledge creation. Such “inter-organizational knowledge creation” (Nonaka and Takeuchi, 1995) was facilitated by two factors: active, yet selective and continuously adjusted industrial development policies; and a variety of linkages with large Taiwanese business groups, foreign sales and manufacturing affiliates and an early participation in international production networks established by foreign electronics companies. A novel contribution of this paper is its focus on inter-organizational knowledge creation. I first describe Taiwan´s achievements in the computer industry. The dominance of SMEs and their role as a source of flexibility is documented in part II. Part III describes some policy innovations that have shaped the process of knowledge creation. The rest of the paper inquires how inter-organizational knowledge creation has benefited from a variety of linkages with large domestic and foreign firms; I also address some industrial upgrading requirements that result from this peculiar type of knowledge creation.knowledge creation; learning; small firms; networks; firm strategy; industrial policies;

The case of Foxconn in Turkey: benefiting from free labour and anti-union policy

Starting from the 2000s Foxconn invested in Czechia, Slovakia, Hungary, Russia and Turkey, implementing a territorial diversification strategy aimed at getting nearer to its end markets. This chapter investigates the development of Foxconn in Turkey where the multinational owns a plant with about 400 workers. A few kilometres from the city of \uc7orlu and close to highways, ports and international airports, the plant enables Foxconn to implement an efficient global supply chain. We illustrate this process by examining the company\u2019s localisation within a special economic zone, underlining the economic advantages derived from such a tax regime, bringing labour costs down to the Chinese level and obtaining proximity to European, North African and Middle East customers, thus lowering logistic costs. We also analyse the roles of labour flexibility and trade unions. In order to impose far-reaching flexibility on its workers Foxconn put in place a range of strategies, including an hours bank system, multitask operators and the recruitment of apprentices thanks a special programme funded by the state. We show how these have been crucial for Foxconn\u2019s just-in-time production contrasting its labour turnover problem. Finally, we highlight how the company has been able to implement a flexible working pattern, weaken the trade unions and undercut workers\u2019 opposition, thanks to favourable labour laws approved by successive governments in the past thirty years

Flexible workforces and low profit margins: electronics assembly between Europe and China

This book investigates restructuring in the electronics industry and in particular the impact of a \u2018Chinese\u2019 labour regime on work and employ - ment practices in electronics assembly in Europe.1 Electronics is an extremely dynamic sector, characterized by an ever-changing organi - zational structure, as well as cut-throat competition, particularly in manufacturing. Located primarily in East Asia, electronics assembly has become notorious for poor working conditions, low unionisation and authoritarian labour relations. However, hostile labour relations and topdown HR policies are not unique to East Asia. They have become associated with the way the sector is governed more broadly, with a number of Western companies also coming to rely on such practices

Introduction

This book investigates restructuring in the electronics industry and in particular the impact of a \u2018Chinese\u2019 labour regime on work and employ - ment practices in electronics assembly in Europe.1 Electronics is an extremely dynamic sector, characterized by an ever-changing organi - zational structure, as well as cut-throat competition, particularly in manufacturing. Located primarily in East Asia, electronics assembly has become notorious for poor working conditions, low unionisation and authoritarian labour relations. However, hostile labour relations and topdown HR policies are not unique to East Asia. They have become associated with the way the sector is governed more broadly, with a number of Western companies also coming to rely on such practices

East Asian Economies\u27 Cooperation in Cross-border Direct Investment Arrangements

While economic globalization continues to develop, the global economy keeps integrating through increasing trade and foreign direct investment (FDI). The establishment of close and comprehensive industrial production and distribution networks in the East Asian region is mainly driven by FDI cooperation between multinational enterprises (MNEs) and local firms. MNEs have played a key role in promoting vertical intra-industry trade in East Asia by setting up regional and international production networks through FDI

Inter-Port Competition and Inland Container Transport: A multiple Criteria Decision-Making Approach to Achieve Intermodal Transport System Development Stratergies in Taiwan.

Merged with duplicate record 10026.1/2833 on 10.04.2017 by CS (TIS)Inland container transport has intensified over the past thirty years in Taiwan. It is closely related to inter-port competition and port selection by container carriers. In the 1980's, large containerships only berthed at Kaohsiung port due to the limit of container terminal operation capacities of Keelung port and the carrier's regional hub port decision in the country region. The container traffic of the south-north motorways made them more crowded and increased road maintenance expenses. The purpose of this research is to study inter-port competition and inland container transport flows in Taiwan. Although Taiwan is an island, the freight transport policy has been focused on rail and motorway rather than sea transportation. Therefore, it is intended to study the contexts of inland container traffic flows and the inter-port competition model. Following from this, the main objectives are to understand the details of container ports in order to identify the major criteria and variables related to the development of the intermodal freight transport system and then to create an integrated decisionmaking process model as a framework to help the public sector make quality decisions. We designed, tested and evaluated a public involvement process that identified public values for use in the development of an intermodal transport system for the container port. The methodology of this research includes the development of a Multiple Criteria Decision-Making (MCDM) model based on the Analytic Hierarchy Process (AHP) and validated by the use of priority setting for the intermodal transport system at Kaohsiung port as a case study. The main idea behind mathematical programming is the optimal selection of a set of research activities given limited resource availability, decision constraints and the pursuit of multiple objectives. A final model addresses the simultaneous analysis of the selection process clearly able to be traced back by all parties. This research developed a framework that will enable the public sector to make better decisions when selecting intermodal transport system proposals and also save decision-makers time and effort

Supply Chain Integration Barriers to Port-Centric Logistics—An Emerging Economy Perspective

Despite the growing interest in supply chain integration and port performance in the maritime literature, there is a lack of detailed studies into the barriers to integration in port-centric logistics. This study explores the barriers to port-centric supply chain integration from an emerging economy and multistakeholder perspective by using the DEMATEL (Decision Making-Trial and Evaluation Laboratory) analysis technique. The findings indicate that institutional requirements, lack of awareness by stakeholders, and port-centric supply chain integration all significantly impact supply chain projects that have been designed to offer maximum value to customers at a low cost. Other crucial barriers include the absence of benchmarking standards and lack of an innovation culture. The policy and managerial implications are explained