IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v44y2012i1p68-88.html
   My bibliography  Save this article

New Relationships between Japanese and Taiwanese Electronics Firms

Author

Listed:
  • David W Edgington

    (Department of Geography, University of British Columbia, Vancouver, BC V6T 1Z2, Canada)

  • Roger Hayter

    (Department of Geography, Simon Fraser University, Burnaby, BC V5A 1S6, Canada)

Abstract

This paper examines the cultural dimensions of production networks between Japanese and Taiwanese firms. Conceptually, we argue that, due to historical and cultural ties between the two countries, as well as long-standing associations with Taiwanese suppliers, Japanese lead firms have deepened their relationships as Taiwan has entered a more technologically based stage of development. Taiwan has also been pivotal in Japan–Taiwan–China relations because of its cultural as well as geographic proximity to the two economic giants. Empirically, the analysis draws on interviews with sixteen Japanese electronics companies in Taipei and Hsinchu Science City, as well as secondary data concerning Japanese trade and investment in Taiwan. We contend that Japanese lead firms have moved to a position of insiders and partners with their Taiwanese suppliers in the information, technology, and communications sector. In addition, Japanese electronics firms now see Taiwan as a viable bridge to production and markets in China, while corporate relations are moving towards heterarchical or matrix arrangements, away from the hierarchical flying geese model. The study notes that there are challenges and limits to these new forms of relations.

Suggested Citation

  • David W Edgington & Roger Hayter, 2012. "New Relationships between Japanese and Taiwanese Electronics Firms," Environment and Planning A, , vol. 44(1), pages 68-88, January.
    • Handle: RePEc:sae:envira:v:44:y:2012:i:1:p:68-88
    DOI: 10.1068/a4453
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a4453
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a4453?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:econom:v:38:y:1971:i:149:p:1-27 is not listed on IDEAS
    2. Dieter Ernst, 1998. "What Permits Small Firms to Compete in High-Tech Industries? Inter-Organizational Knowledge Creation in the Taiwanese Computer Industry," DRUID Working Papers 98-3, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Nan Wiegersma & Joseph E. Medley, 2000. "Aid and Development," Palgrave Macmillan Books, in: US Economic Development Policies towards the Pacific Rim, chapter 1, pages 1-15, Palgrave Macmillan.
    4. Henry Wai-chung Yeung, 2000. "The Dynamics of the Globalization of Chinese Business Firms," Palgrave Macmillan Books, in: Henry Wai-chung Yeung & Kris Olds (ed.), Globalization of Chinese Business Firms, chapter 4, pages 75-104, Palgrave Macmillan.
    5. Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 893-920, December.
    6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    7. Roger Hayter & David W. Edgington, 2004. "Flying Geese In Asia: The Impacts of Japanese MNCs as a Source of Industrial Learning," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(1), pages 3-26, February.
    8. Lincoln,James R. & Gerlach,Michael L., 2004. "Japan's Network Economy," Cambridge Books, Cambridge University Press, number 9780521453042, September.
    9. Mathews, John A., 2002. "The origins and dynamics of Taiwan's R&D consortia," Research Policy, Elsevier, vol. 31(4), pages 633-651, May.
    10. Alice H. Amsden & Wan-wen Chu, 2003. "Beyond Late Development: Taiwan's Upgrading Policies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011980, April.
    11. Daniel You‐Ren Yang & Neil M. Coe, 2009. "The Governance of Global Production Networks and Regional Development: A Case Study of Taiwanese PC Production Networks," Growth and Change, Wiley Blackwell, vol. 40(1), pages 30-53, March.
    12. David W Edgington & Roger Hayter, 2000. "Foreign Direct Investment and the Flying Geese Model: Japanese Electronics Firms in Asia-Pacific," Environment and Planning A, , vol. 32(2), pages 281-304, February.
    13. Nan Wiegersma & Joseph E. Medley, 2000. "US Economic Development Policies towards the Pacific Rim," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-333-98386-7, March.
    14. Roger Hayter & David Edgington, 1997. "Cutting Against the Grain: A Case Study of MacMillan Bloedel’s Japan Strategy," Economic Geography, Taylor & Francis Journals, vol. 73(2), pages 187-213, April.
    15. Yamawaki,Hideki, 2007. "Japanese Exports and Foreign Direct Investment," Cambridge Books, Cambridge University Press, number 9780521871921, September.
    16. Chia‐Wen Lee & Roger Hayter & David W. Edgington, 2010. "Large And Latecomer Firms: The Taiwan Semiconductor Manufacturing Company And Taiwan'S Electronics Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 177-198, April.
    17. Sato, Yukihito, 1997. "Diverging Development Paths of the Electronics Industry in Korea and Taiwan," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 35(4), pages 401-421, December.
    18. Poon, Jessie P.H. & MacPherson, Alan, 2005. "Technology acquisition among Korean and Taiwanese firms in the United States," International Business Review, Elsevier, vol. 14(5), pages 559-575, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kenney, Martin & Breznitz, Dan & Murphree, Michael, 2013. "Coming back home after the sun rises: Returnee entrepreneurs and growth of high tech industries," Research Policy, Elsevier, vol. 42(2), pages 391-407.
    2. Kim, Jinhee & Lee, Keun, 2022. "Local–global interface as a key factor in the catching up of regional innovation systems: Fast versus slow catching up among Taipei, Shenzhen, and Penang in Asia," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    3. Mei-Chih Hu, 2011. "Evolution of knowledge creation and diffusion: the revisit of Taiwan’s Hsinchu Science Park," Scientometrics, Springer;Akadémiai Kiadó, vol. 88(3), pages 949-977, September.
    4. Keun Lee, 2009. "How Can Korea be a Role Model for Catch-up Development?: A 'Capability-based View'," WIDER Working Paper Series RP2009-34, World Institute for Development Economic Research (UNU-WIDER).
    5. Liu, John Jen-wei & Ray, Pradeep Kanta, 2012. "The ‘Triple-alliance’ perspective for new industry creation: Lessons from the flat panel industry in Taiwan," Journal of Asian Economics, Elsevier, vol. 23(5), pages 585-599.
    6. Rajah Rasiah & Yap Xiao Shan & Yap Su Fei, 2015. "Sticky Spots on Slippery Slopes: The Development of the Integrated Circuits Industry in Emerging East Asia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 7(1), pages 52-79, April.
    7. Chia‐Wen Lee & Roger Hayter & David W. Edgington, 2010. "Large And Latecomer Firms: The Taiwan Semiconductor Manufacturing Company And Taiwan'S Electronics Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 177-198, April.
    8. Kevin Gray, 2013. "Aid and Development in Taiwan, South Korea, and South Vietnam," WIDER Working Paper Series wp-2013-085, World Institute for Development Economic Research (UNU-WIDER).
    9. Ishtiaq Mahmood & Chi-Nien Chung & Will Mitchell, 2013. "The Evolving Impact of Combinatorial Opportunities and Exhaustion on Innovation by Business Groups as Market Development Increases: The Case of Taiwan," Management Science, INFORMS, vol. 59(5), pages 1142-1161, May.
    10. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a ‘Factory Southern Africa’ Feasible?," World Bank Publications - Reports 23788, The World Bank Group.
    11. Keun Lee, 2013. "Capability Failure and Industrial Policy to Move beyond the Middle-Income Trap: From Trade-based to Technology-based Specialization," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, chapter 4, pages 244-272, Palgrave Macmillan.
    12. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a 'Factory Southern Africa' Feasible? Harnessing Flying Geese to the South African Gateway," CESifo Working Paper Series 5867, CESifo.
    13. Gray, Kevin, 2013. "Aid and Development in Taiwan, South Korea, and South Vietnam," WIDER Working Paper Series 085, World Institute for Development Economic Research (UNU-WIDER).
    14. Tsu-Lung Chou, 2007. "The Science Park and the Governance Challenge of the Movement of the High-Tech Urban Region towards Polycentricity: The Hsinchu Science-Based Industrial Park," Environment and Planning A, , vol. 39(6), pages 1382-1402, June.
    15. Lee, Keun, 2005. "Making a Technological Catch-up: Barriers and Opportunities," MPRA Paper 109776, University Library of Munich, Germany.
    16. Oh, Eun-Teak & Chen, Kuo-Min & Wang, Lu-Mei & Liu, Ren-Jye, 2015. "Value creation in regional innovation systems: The case of Taiwan's machine tool enterprises," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 118-129.
    17. Ouyang, Hongwu Sam, 2006. "Agency problem, institutions, and technology policy: Explaining Taiwan's semiconductor industry development," Research Policy, Elsevier, vol. 35(9), pages 1314-1328, November.
    18. Balaji Parthasarathy & Yuko Aoyama, 2006. "From Software Services to R&D Services: Local Entrepreneurship in the Software Industry in Bangalore, India," Environment and Planning A, , vol. 38(7), pages 1269-1285, July.
    19. Breznitz, Dan & Zehavi, Amos, 2010. "The limits of capital: Transcending the public financer-private producer split in industrial R&D," Research Policy, Elsevier, vol. 39(2), pages 301-312, March.
    20. Heineck, Guido & Süssmuth, Bernd, 2013. "A different look at Lenin’s legacy: Social capital and risk taking in the Two Germanies," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 789-803.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:44:y:2012:i:1:p:68-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.