In the recent years, a lot of Taiwan firms shut factories and turned to invest their capital in Mainland China. This situation reflects that the investment conditions in Taiwan are not as good as before. On the contrary, China has plenty of labor forces and their wage rate is much lower than Taiwan. Besides, China is an extensive market and abundant in natural resources. Many famous businesses in the world seize the chance of investing in China and get the market share. The first purpose of thesis is that analyzing the differences of HR values, competitive strategies, HRM systems, and firm performance between the indigenous firms in Taiwan and Taiwan firms in Mainland China. And the second purpose is that using all the samples to examine the effect of HRM systems on firm performance. This research collected data by issuing and mailing questionnaires. Effective questionnaires of indigenous firms in Taiwan sent back are 182 and effective rate is 10.11%; effective questionnaire of Taiwan firms in Mainland China sent back are 119 and effective rate is 19.01%. By using statistical method, the results are as follows: 1. There are significant differences in ¡§HR values¡¨ and ¡§firm performance¡¨ between indigenous firms in Taiwan and Taiwan firms in Mainland China. The result shows that Taiwan firms in Mainland China put more emphasis on HR values and has better performance than indigenous firms in Taiwan. 2. ¡§HR values¡¨ and ¡§competitive strategies¡¨ have positive effects on ¡§HRM systems¡¨. Besides, setting up an independent HR department also has positive effects on ¡§HRM systems¡¨. The result indicates that if the top managers put more emphasis on human resource management and adopt differentiation strategies, the firms are more likely to use ¡§make-organic¡¨ HRM systems. 3. ¡§HR values¡¨, and ¡§competitive strategies¡¨ have positive impact on ¡§firm performance¡¨. This result shows that if the top managers put more emphasis on human resource management and adopt differentiation strategies, the firms will get better performance. According to the results above, this study suggest that we should take human resource as the most important asset of the business, and set up an independent HR department to manage human resource and make good use of it. In addition, we should adapt the ¡§make-organic¡¨ HRM systems in order to improve performance. v