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The Study of Taiwan Enterprises¡¦ Decision Error in China

This thesis focuses on exploring the problems and difficulties that Taiwanese-owned enterprises confront when they enter China market. Past studies on Taiwan companies entering China market lays great emphasis on the discussion of successful experiences and models. However, many actual illustrations of Taiwanese-owned enterprises suffering a setback have cautioned the follow-up Taiwan companies that the potential uncertainty and risk of China market are major factors of many strategic failing. Moreover, many individual relative factors affect the strategic responses of decision maker that can accommodate the inside and outside organizational environment well or not. Accordingly, through the gathering of a large number of secondary information and personal interviews, this study expects to provide a clearer macro-framework of how previous Taiwan companies¡¦ make incorrect and failing decisions with a practical method and help clarify the relationship among the errors. Additionally, this study tends to draw a valuable and meaningful conclusion from the process of data collecting and analysis.
In accordance with the first research objective ¡V attributing and categorizing the factors that caused many complicated illustrations of Taiwan companies¡¦ failing, this study uses the decision-making framework to clarify the context. The decision-making framework can be divided into three parts, including decision makers, decision-making context, and decision-making process. The major influential factors of error derive from the decision maker and decision-making context. The third part, the errors of the decision-making process, are engendered and influenced by the former two parts, and thus will not be discussed much here.
After classifying and grouping the factors of decision-making errors, this study further combines two parts, the error classification and the different types of enterprises, illustrate with a two-axes frame to clearly explain how a Taiwan enterprise with different conditions can relative seriously to the possibility of making mistakes and obstacle in China market. Major types of Taiwan enterprises include four parts: the entry timing¡Bthe investment orientation t¡Bthe composition of ownership and the business scale.
The research findings are summarized as following,
1. The entry timing: As the time changes, government¡¦s attitude, investment environment and tendency, all are the very important thing affect to the bargaining power of any enterprises. What Taiwan enterprises that entry China market in different timing have concerned are quite different, even the possibility of making serious errors.
2. Investment orientation¡GThe enterprises are classified into two types ¡V orientation of China market selling and orientation of manufacture for export. Apparently, the two types of decision makers are quite different in risk-taking and risk- evaluating. As to the whole, the enterprises that focus on China market selling are more likely to engender several problems, such as consuming culture accommodation, distribution, and employee management problems. Compared with the other type, problem in capital uncertainty are apt to occur.
3. Composition of ownership: Compared with decision makers in joint venture, decision makers in ventures exclusively with his own investment have more right to act on their own. Because many difficulties are such serious that enterprises should not make, most Taiwanese-owned enterprises are more likely to enter China market in 100% ownership.
4. Business scale¡GCompared with the large scale of Taiwanese enterprises¡¦ decision makers, the medium and small companies¡¦ decision makers are more likely to make decisions quickly, adapt themselves to the changes, and prefer risks. Relatively, with the support of more resources, the large Taiwanese enterprises¡¦ decision makers could draw up their strategic planning of China step by step with rational ways. Compared with the medium and small enterprises, large enterprises have more bargaining power, and are likely to establish long-term relationship with the government. However, the medium and small enterprises still have their advantage in local government relationship and much closer to local consumer preference. All enterprises with different scale may have their own advantages and disadvantages. Despite that they both are confronted with the problem of joint venture and competition, the actual problems occurred are not the same. In the issue of the capital uncertainty, most large enterprises face more serious problems because many strategic blueprint of large enterprises need the support of a large amount of capital. If the enterprise has inappropriate arrangement or incorrect estimation, some capital issue may emerge.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0627103-163900
Date27 June 2003
CreatorsHsiao, Ping-Wei
ContributorsHsien-tang Tsai, Jen-Jsung Huang, Kuang-Jung Tseng, Cher-Min Fong
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0627103-163900
Rightsnot_available, Copyright information available at source archive

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