Monday, 4 September 2023

Localization, R&D Intensity, and Firm Performance of Taiwanese Enterprises in China | Chapter 3 | An Overview on Business, Management and Economics Research Vol. 1

This phase intends to analyze the recent trends and appearance of Taiwanese investment operating in China (from 2002 to 2005), in conditions of localization, R&D intensity, and firm performance. In the modern economic age, test (R&D) investment isan main means of enhancing the profit added to an industry’s trade performance and establishing a key back-and-forth competition. The empirical verdicts show that from 2002-2005, the intensity of each local relation (except local supplier linkage) manifest a very fixed trend. We argue that between 2002 and 2005, Taiwanese investors had learnt the art of imposing upon China's regional benefits, and as a result, the intensity of each local relation (aside from that accompanying local suppliers) is almost constant. Besides, it is important that strategic aims, firm’s size, and purchase type all make a difference to the extent of localization. The description of local linkages, in this study, is a netting of interconnected networks upon which trade activities betwixt actors are transported. Some economists suggest that exchange connections in local networks concede possibility be examined on the base either of activities or of actors. As regards R&D, Taiwanese MNEs appear to be unfeeling to conducting R&D in China. The depressed degree of R&D intensity is appropriate to all types of Taiwanese subsidiaries. This study statistically engages an indicator to classify Taiwanese MNE something added investing in China. It be convincing to assume the local-advertise-seeking group mainly handle their products in the host country’s household market. Finally, according to Taiwanese top managers’ emotional self-evaluations, their subsidiary-level firm acting in China demonstrates a positive and constant trend. This verdict suggests that Taiwanese MNEs grant permission be able to boost their core competitiveness at home and upgrade their company's depiction abroad by investing in China.

Author(s) Details:

Chun-Sheng Joseph Li,
Department of International Business, National Taichung University of Education, 140 Min-Shen Rd., Taichung-40306, Taiwan.

Please see the link here: https://stm.bookpi.org/AOBMER-V1/article/view/11723

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