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Core competence and competitive strategy of the Taiwan shipbuilding industry: a resource-based approach

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  • Chia-Chan Chou
  • Pao-Long Chang

Abstract

The shipbuilding output for Taiwan had been 4th in the world until 1999; however, at that time, it dropped to the 9th. Currently, the world shipbuilding capacity greatly exceeds the demand and this disparity could grow to 40% by 2005. Facing this turning point, the main objective of this study is to re-examine the international competitive position of Taiwan's shipbuilding industry; furthermore, to realize the industries’ core competences and attempt to recommend competitive strategies for the future development of Taiwan's shipbuilding industry. The results show that Taiwan's main core competence is production management, mainly through heterogeneous resource analysis. This paper also proposes that for general types of ships, Taiwan's development priority should be to utilize low-cost strategies to occupy the market continuously; as to high value added types of ships, Taiwan's priority should be to utilize differential and focus strategies. Finally, the direction of government policy is suggested.

Suggested Citation

  • Chia-Chan Chou & Pao-Long Chang, 2004. "Core competence and competitive strategy of the Taiwan shipbuilding industry: a resource-based approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 31(2), pages 125-137, April.
    • Handle: RePEc:taf:marpmg:v:31:y:2004:i:2:p:125-137
    DOI: 10.1080/0308883042000208310
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    References listed on IDEAS

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    1. Boa Zhang Lu & Alan S. T. Tang, 2000. "China shipbuilding management challenges in the 1980s," Maritime Policy & Management, Taylor & Francis Journals, vol. 27(1), pages 71-78.
    2. Sayan Chatterjee & Birger Wernerfelt, 1991. "The link between resources and type of diversification: Theory and evidence," Strategic Management Journal, Wiley Blackwell, vol. 12(1), pages 33-48, January.
    3. King, John, 1999. "New directions in shipbuilding policy," Marine Policy, Elsevier, vol. 23(3), pages 191-205, May.
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    Cited by:

    1. Lee, Choong Bae & Wan, Junbin & Shi, Wenming & Li, Kevin, 2014. "A cross-country study of competitiveness of the shipping industry," Transport Policy, Elsevier, vol. 35(C), pages 366-376.
    2. Jiang, Liping & Bastiansen, Erik & Strandenes, Siri P., 2013. "The international competitiveness of China’s shipbuilding industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 39-48.
    3. Juneseuk Shin & Young-Mo Lim, 2014. "An empirical model of changing global competition in the shipbuilding industry," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(6), pages 515-527, November.

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