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A Comparison Study of Manufacturing Industry in Taiwan and China: Manager's Perceptions of Environment, Capability, Strategy and Performance

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  • WEN-SHINN LOW
  • SOO MAY CHENG

Abstract

This article compares managers' perceptions of environment, capability, strategy and business performance in Taiwan and China. Based on an analysis of survey data collected from the fastener industry, results show that the industrial environment and network capability are significantly associated with performance in China, but not in Taiwan. The findings highlight the difference between actual and perceived situations which results from what specific context decision makers find themselves in and how they allocate attention to specific issues. In addition, path analysis reveals that both organizational and network capability of Chinese firms are significantly associated with strategy and performance. This demonstrates that the strategy selected by the Chinese firms as a mediator influences their performance. Implications of these findings are discussed.

Suggested Citation

  • Wen-Shinn Low & Soo May Cheng, 2006. "A Comparison Study of Manufacturing Industry in Taiwan and China: Manager's Perceptions of Environment, Capability, Strategy and Performance," Asia Pacific Business Review, Taylor & Francis Journals, vol. 12(1), pages 19-38, January.
    • Handle: RePEc:taf:apbizr:v:12:y:2006:i:1:p:19-38
    DOI: 10.1080/13602380500336996
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    Cited by:

    1. Xi’na Yuan & Sohyoun Shin & Xinming He & Sang Yong Kim, 2016. "Innovation capability, marketing capability and firm performance: A two-nation study of China and Korea," Asian Business & Management, Palgrave Macmillan, vol. 15(1), pages 32-56, February.

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