Regional development and sources of superior performance across textile and IT sectors in Taiwan |
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Authors: | Yi-Min Chen Feng-Jyh Lin |
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Institution: | 1. Department of Asia-Pacific Industrial and Business Management , National University of Kaohsiung , 700 Kaohsiung University Road, Nan-Tzu District, Kaohsiung 811, Taiwan E-mail: ymchen@nuk.edu.tw;2. Department of Business Administration , Feng Chia University , Taiwan |
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Abstract: | The rapid growth and industrialization of Taiwan's textile and IT sectors, mainly comprised of small and medium-sized enterprises, has prompted an array of explanations among academics, including neoliberalism, structural-institutionalism, flying geese patterns, regional networks and economic geography. Drawing on neoliberal, structural-institutional, regional networking and economic geographic views in that strong Taiwanese entrepreneurial culture is important to its textile and IT sector development, this study shares their positive perspectives in influencing the sources of profitability differentials among Taiwan's textile and IT firms in international competitiveness. Researchers investigating the sources of performance differences among firms have focused mainly on the relative importance of industry and firm factors. Specifically, this study employs Taiwan's business database to examine industry and firm effects on profitability differentials in these sectors using return on assets and the economic performance measures of economic value added and market value added. A variance components model is proposed, and findings indicate that firm effects dominate performance while industry effects have little impact. Our discussion reconciles results with those of previous studies. |
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Keywords: | industry organization textile sectors economic performance IT sectors resource-based view Taiwan |
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