With the emergence of China market, MNCs are so attracted by it on one hand, and so afraid of the high failure ratio of entering the Mainland China market. During the process of chasing the Mainland China market, MNCs usually rely on the subsidiaries of Taiwan for support, and utilize it to enter Mainland China. However, with the marker of Mainland China turning bigger and bigger, lots of MNC Taiwan subsidiaries seem to face the threat of substitution of China Subsidaries, and come up with the question weather Taiwan subsidiaries should be continued or not. This study has focused on the subsistence of Taiwan subsidiaries and the relationships between the Cross-Strait subsidiaries. This research is under the observation of Taiwan subsidiaries¡¦ value, Cross-Strait subsidiaries¡¦ resource asymmetry, and the nature of value activities, to explore how these variables influence the subsistence of MNCs¡¦ Taiwan subsidiaries. By Use of the strategic role of MNC subsidiaries, subsidiaries¡¦ dependence on MNCs, resource based view, and subsidiary¡¦s network characteristics, this research probe into the independent variable that influence the subsistence of Taiwan subsidiaries and the relation between Taiwan and China subsidiaries. This research uses questionary survey to collect data. The population is the list of foreignenterprises in Taiwan published by Dun and Bradstreet, 1999 / 2000. The subsidiaries belong to manufacturing industry and non-financial service industry and are owned by foreign MNCs. The scale of these subsidiaries is above 30 people and still under operation by now. We use multi-regression analysis, ANCOVA analysis, and binominal logistic regression analysis to examine the effects of independent variables on Taiwan subsidiaries¡¦ threat of subsistence. After analyzing 59 MNCs¡¦ Taiwan subsidiaries, the results reveal that the importance of Taiwan subsidiary, the resource and capability of Taiwan subsidiaries, the integration of Taiwan subsidiaries with MNCs, the local responsiveness of Taiwan subsidiaries , the industrial embracement of Taiwan subsidiaries, the similarity of value activities between Taiwan and China subsidiaries, do have influence on Taiwan subsidiaries¡¦ subsistence. In addation, different kinds of relation between Taiwan and China subsidiaries have its specific combination of dependent variables, and imply different degree of threat of subsistence.

To Invest in Mainland China becomes Taiwan corporations¡¦ high priority by virtue of China¡¦s vast internal consumer market, the trade liberalization after joining WTO, low labor cost, and easy communication in Chinese language. However, the special relationship between Taiwan and China induces Taiwan corporations¡¦ investment risks due to political uncertainties. The establishment of information and communication network between headquarters in Taiwan and their mainland subsidiaries enables the governance and coordination between two sides. However, bearing these special relations, it is a nontrivial question to ask any unique information infrastructure and system that Taiwan corporations adopt which may be consistent with or different from prior literatures in multi-national corporations. This thesis develops a conceptual framework to identify the relationship between the factors and IT configurations, and then proposes propositions to explain findings from three Taiwan companies, which have subsidiaries in China. This study asserts that the political uncertainties that influence the IT configuration of Taiwan companies with subsidiaries in China are common with multinational firms whose headquarter and subsidiaries have normal relationship. The major contribution of this study is to explore the factors that affect Taiwan companies¡¦ IT governing practice toward their China subsidiaries.