A Case Study of Foreign Direct Investment by Taiwanese Firms and Migration of Industrial Network

Abstract

Along with the concept of network theory, this research describes the interaction among members of the industrial network and the modes of foreign direct investment. Eight cases were selected from the list of names provided by the Corporate Synergy Development Center that represents the paradigm of industrial networks in Taiwan. The results of the study show three types of network migration: Market, Hierarchy, and Hybrid. Proposed are three kinds of network strategies: Proactive, Analyzer, and Defender. From the research, it is clear that (1) the relationships within the domestic industrial network will further impact the industrial network migration model; and (2) in order to cope with the transformation of industrial network, a firm with a different network position will adopt a different internationalization network strategy. Implications for managers are that firms need to adopt various strategies according to particular situations of the industrial network.