Studying organizational capabilities from the perspective of national institutions has been widely adopted in high tech industries in developed countries, but scarcely in developing countries. This research applies this framework into China to study the solar PV industry, but at the regional level. The solar PV industry in China has strongly developed in the global market in recent years, having been the biggest solar PV producer since 2007. However, there are contrast regional differences in the solar PV industry development between Jiangsu and Shandong. The solar PV producers in Jiangsu have stronger organizational capabilities to perform well compared to those in Shandong. Thus this research adopts the framework to explore the influence of regional institutions (the role of regional government, financial systems, inter-firm relations and education and labor systems) in building organizational capabilities (R&D capabilities in technology, capabilities in finance, managerial coordination and human resources) in solar PV industry in Jiangsu and Shandong regions. Comparative case studies are adopted in my research and the research has investigated six solar PV companies and several associated organizations. It is concluded that different regional institutions have different influences (to promote or hinder) in building organizational capabilities in the solar PV industry. Compared to Shandong, the regional institutions in Jiangsu can help solar PV companies to build organizational capabilities. The research findings indicate the importance of regional institutions in China.

Solar cell production has served as the most important link in solar photovoltaic¡]PV¡^ supply chain from upstream silicon raw material and wafer supply to downstream module and system installation. The PV industry enjoyed a miraculously rapid growth in recent years with Taiwan ranking No. 4 in global solar cell production in 2008. However, in the wake of the financial storm, the industry has gone through some unprecedented changes in the market due to the severe global demand shrinkage. Looking ahead, challenges also lie in product assimilation and profit erosion. Difficulty will increase with market concentration and global operation; while the low yield of capital investment in R & D in the new industry adds on the pressure, too. This thesis proposes a four-step global development strategy for Taiwan solar cell industry after a SWOT analysis. Producers are advised to exert current strengths in developing tolling business in the short term for elevating uptime and capacity, while, in the long run, they should coordinate more efforts in brand-building and innovation for differentiation. Efforts should also be persisted to strengthen linkage within the supply chain and to extend ties with the government, end market, or other industries to create better synergy. Meanwhile, the government is expected to provide incentives for strategic research, to assist in cross-business alliance with Taiwan leading IT technologies and to bridge between the two sides of the Taiwan Straits for enhanced cooperation in solar PV industry, to ensure Taiwan¡¦s firm grip in the rising industry of global alternative energy.