Hostname: page-component-5c6d5d7d68-ckgrl Total loading time: 0 Render date: 2024-08-09T20:26:14.707Z Has data issue: false hasContentIssue false

Inter-Firm Networks and Industrial Development in the Global Manufacturing System: Lessons from Taiwan

Published online by Cambridge University Press:  01 January 2023

Teresa Shuk-ching Poon*
Affiliation:
The Open University of Hong Kong

Abstract

The link between inter-firm networks and industrial development in Taiwan has rarely been conspicuously identified in the extant literature. This paper highlights the existence of such a link, first in the labour-intensive phase of industrialisation from early 1960s to late 1970s, and then in the current phase of technology-intensive industrial development in Taiwan. However, established forms of inter-firm networks within and across the Taiwanese border have structural limitations to generate innovation from within the networks. This impedes further development of Taiwan’s industries, in particular those which are more technology-intensive. Using the information technology industry as a case study, this paper examines the role of the state and the private businesses in fostering the formation of newer forms of inter-firm networks which contribute to Taiwan’s further industrial development.

Type
Current Issues
Copyright
Copyright © The Author(s) 1998

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Appelbaum, Richard P. and Gereffi, Cary (1994), ‘Power and Profits in the Apparel Commodity Chain’, in Bonacich, Edna, Cheng, Lucie, Chinchilla, Norma, Hamilton, Nora and Ong, Paul (Eds), Global Production: the Apparel Industry in the Pacific Rim. Philadelphia: Temple University Press.Google Scholar
Appelbaum, Richard P., Henderson, Jeffrey (eds) (1992) States and Development in the Asian Pacific Rim. Newbury Park, California: Sage Publicationa, Inc. Google Scholar
Balassa, Bela (1988) ‘The Lessons of East Asian Development: An Overview’ Economic Development and Cultural Change, April, Vol. 36, pp. S273291.CrossRefGoogle Scholar
Biggs, T.S., Levy, B.D. (1991) ‘Strategic Interventions and the Political Economy of Industrial Policy in Developing Countries’ in Perkins, P.J., Roemer, M. Reforming Economic Systems in Developing Countries. Harvard University Press.Google Scholar
Chang, Chung-Chau (1992) ‘The Development of Taiwan’s Personal Computer Industry,’ in Wang, N. T. (Ed), Taiwan Enterprises in Global Perspective. New York: M.E. Sharpe, Inc. Google Scholar
Chen, C.C. (1994) ‘Information Industry in Taiwan: the Close Encounter of the Second Crisis’, Commonwealth. 1 January (In Chinese).Google Scholar
Chen, Jieh-Shyuan (1994) Cooperative Network and the Structure of Living: A Socio-economic Analysis of Taiwan’s Small and Medium Enterprises. Taipei: Lien Jien Publishing Co (In Chinese).Google Scholar
Chen, Jieh-Ying (1995) Technology and Society: A Sociological Analysis of Technological Development of the Small and Medium Enterprises in Taiwan. Ph.D Dissertation, Department of Sociology. Tung Hai University (In Chinese).Google Scholar
Cumings, Bruce (1984) ‘The Origins and Development of the Northeast Asian Political Economy: Industrial Sectors, Product Cycles, and Political Consequences’, International Organization Vol. 38, No. 1, Winter, pp. 140.CrossRefGoogle Scholar
Department of Statistics 1995. The Import Export Trade Statistics Monthly Report on Taiwan, R.O.C. April. Ministry of Finance.Google Scholar
Deyo, Frederick (Ed) (1987) The Political Economy of the New Asian Industrialism. Ithaca: Cornell University Press.CrossRefGoogle Scholar
Dicken, Peter (1992) Global Shift: The Internationalisation of Economic Activity. Second Edition, New York: Guildford Publications.Google Scholar
Gereffi, Cary (1989) ‘Development Strategies and the Global Factory’ The Annals of the American Academy of Political and Social Science. Vol. 55, September, pp. 92104.Google Scholar
Gereffi, Gary (1994) ‘The International Economy and Economic Development,’ in Smelser, Neil J. and Swedberg, Richard (eds) The Handbook of Economic Sociology. Princeton, NJ: Princeton University Press.Google Scholar
Gereffi, Gary and Korzeniewicz, Miguel (1990) ‘Commodity Chains and Footwear Exports in the Semiperiphery,’ in Martin, W. C. (Ed), Semiperipheral States in the World Economy. Westport, CT: Greenwood Press.Google Scholar
Gold, Thomas (1986) State and Society in the Taiwan Miracle. N.Y.: M.E. Sharpe.Google Scholar
Gold, Thomas (1988) ‘Entrepreneurs, Multinationals and the State,’ in Winckler, Edwin A. and Greenhalgh, Susan (eds), Contending Approaches to the Political Economy of Taiwan. London: M.E. Sharpe Inc. Google Scholar
Hamilton, Gary G., Biggart, Nicole Woolsey (1988) ‘Market, Culture, and Authority: A Comparative Analysis of Management and Organization in the Far East’, American Journal of Sociology, Vol. 94 Supplement S 5294.CrossRefGoogle Scholar
Hamilton, Cary G., Kao, Cheng-Shu (1990) ‘The Institutional Foundations of Chinese Business: The Family Firm in Taiwan’, Comparative Social Research, Vol. 12, pp. 135151.Google Scholar
Hobday, M. (1995) Innovation in East Asia: The Challenge to Japan. England: Edward Eiger.Google Scholar
Hopkins, Terrence K., Immanuel, Wallerstein, (1986) ‘Commodity Chains in the World Economy prior to 1800’ Review, Vol. 10, No. 1, pp. 157170.Google Scholar
Huges, Helen (1993) East Asia: Is There an East Asian Model? Economics Division Working Papers, Research School of Pacific Studies, Australian National University.Google Scholar
IDB (1994) Strategies and Measures for the Development of the Top Ten Emerging Industries. Taipei: Industrial Development Bureau, Ministry of Economic Affairs.Google Scholar
IDCC (1994) White Paper on Industrial Development. Taipei: Industrial Development Consultative Committee, Ministry of Economic Affairs.Google Scholar
Ill (1993) Information Industry Yearbook, Taiwan, R.O.C. Taipei: Institute for Information Industry, Ministry of Economic Affairs Google Scholar
Ill (1994) The 1994 Information Industry Yearbook, Taiwan, R.O.C. Taipei: Institute for Information Industry, Ministry of Economic Affairs.Google Scholar
Little, I.M.D. (1979) ‘An Economic Reconnaissance,’ in Calenson, W. (Ed) Economic Growth and Structural Change in Taiwan. Ithaca: Cornell University Press.Google Scholar
Little, I.M.D. (1981) ‘The Experience and Causes of Rapid Labour-Intensive Development in Korea, Taiwan Province, Hong Kong and Singapore; and the Possibilities of Emulation’ in Lee, Eddy (Ed), Export-led Industrialisation and Development, International Labour Organisation.Google Scholar
Mathews, John (1995) High-Technology Industrialisation in East Asia: The Case of the Semiconductor Industry in Taiwan and Korea. Contemporary Economic issues Series No. 4, Taipei: CIER.Google Scholar
Mathews, John, Poon, Teresa Shuk-Ching (1995) ‘Technological Upgrading through Alliance Formation: The Case of Taiwan’s NewPC Consortium’ Industry of Free China. Vol. LXXXIV, No. 6. December, pp. 4358.Google Scholar
MIC (1995) The Trend of Future Development of the Personal Computer Industry in the Asian Pacific Region. Taipei: Market Intelligence Centre, Institute for Information Industry, Ministry of Economic Affairs.Google Scholar
Morris, Charles R., Ferguson, Charles H. (1993) ‘How Architecture Wins Technology Wars’ Harvard Business Review, March-April. pp. 8696.Google Scholar
MSBA (1992) White Paper on Small- and Medium- Enterprises. Taipei: Medium and Small Business Administration, Ministry of Economic Affairs.Google Scholar
MSBA (1995) A Compendium of Activities: The Inter-industry Exchange Networks. Medium and Small Business Administration, Ministry of Economic Affairs.Google Scholar
Nikkei Electronics Asia (1995) Taiwan Expands Out, Scales Up. June.Google Scholar
Numazaki, Ichiro (1992) Networks and Partnerships: The Social Organization of the Chinese Business Elite in Taiwan. Ph.D. Dissertation in Department of Anthropology, Michigan State University, U.S.Google Scholar
Orru, Marco, Biggart, Nicole Woolsey and Hamilton, Gary G., (1991) ‘Organisational Isomorphism in East Asia,’ in Powell, Walter W. and DiMaggio, Paul J. (Eds) The New Institutionalism in Organizational Analysis. Chicago: The University of Chicago Press.Google Scholar
Pack, Howard (1992) ‘New Perspectives on Industrial Growth in Taiwan’ In Ranis, Gustav (Ed.) Taiwan: From Developing to Mature Economy. Boulder, Colorado: Westview Press.Google Scholar
Poon, Teresa Shuk-Ching (1996) ‘Dependent Development: The Subcontracting Networks in the Tiger Economies’ Human Resource Management Journal, pp. 3849.CrossRefGoogle Scholar
Poon, Teresa Shuk-Ching Poon. (1997) ‘Inter-firm Networks and Industrial Upgrading in Taiwan: The Case of the Information Technology Industry’ Paper presented at the Third ASEAN Inter-University Seminars on Social Development held in Pekanbaru, Sumatra, Indonesia, 16 to 19 June 1997.Google Scholar
Rappaport Andrew, S., Shmuel, Halevi. (1991) ‘The Computerless Computer Company’. Harvard Business Review. July-August, pp. 6980.Google Scholar
Shieh, Cwo-Shyong (1992) ‘Boss Island: The Subcontracting Network and MicroEntrepreneurship in Taiwan’s Development. New York: Peter Lang Publishing, Inc. Google Scholar
So, Alvin, Chiu, Stephen (1995) East Asia and the World Economy. Thousand Oaks, California: Sage Publications, Inc. Google Scholar
Soo, Y.C. (1995) ‘Taiwan: The Global Industrial Cooperative Island’ Commonwealth. 5 June.Google Scholar
Su, Chin-ho, President, Corporate Synergy Development Centre. Personal Interview. 20 August 1996.Google Scholar
Taiwanese Cooperative Bank (1995) The Present and Future o the Information Indus try in Taiwan (Part I). The Survey and Research Unit.Google Scholar
TIER (1994) The 1994 Almanac of Information Industry in the People’s Republic of China. Taipei: Taiwan Institute of Economic Research.Google Scholar
Yu, Tzong-Shian (1994) Taiwan’s Foreign Direct Investment and Economic Development. Occasional Paper Series No. 9402. April, pp. 18.Google Scholar
Wade, R. (1990a) Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. New Jersey: Princeton University Press.CrossRefGoogle Scholar
Wade, R. (1990b) ‘Industrial Policy in East Asia: Does It Lead or Follow the Market?’ In Gereffi, G., Wyman, D. L. (Eds.) Manufacturing Miracles: Paths of Industrialization in Latin America and East Asia. Princeton, New Jersey, Princeton University Press.Google Scholar
Wang, J. C. (1993) ‘Cooperative Research in a Newly Industrialised Country: Taiwan’. Research Policy. 23. 1994. 607711.Google Scholar
Whitley, Richard (1991) ‘The Social Construction of Business Systems in East Asia’, Organisation Studies, Vol. 12, No. 1, pp. 128.CrossRefGoogle Scholar
Whitley, Richard (1992) Business Systems in East Asia: Firms, Markets and Societies. London: Sage Publications Ltd. Google Scholar