Taiwan's Textile and Clothing SME Response to Globalization

Abstract

ABSTRACT A mixed-method research approach underpinned exploration of antecedents of strategies adopted by Taiwanese small medium-sized enterprises in the clothing and textiles industry to counter the negative economic effect of globalisation and the increasing competitive threat of lower-cost Chinese products. Primary data were collected from 10 case-companies. Phenomenological methods isolated the contingent variables, whereas positivistic statistical analysis quantified the extent of their perceived impact. A range of hypotheses developed from the literature framed the conceptual model. Although the limited data suggest some caution, findings show statistical significance between a perception of good performance and a range of deployed tactics that include: leadership with technical and innovative motivational style of management; horizontal and vertical industry networking, organisational culture underpinning continuous improvement; original equipment manufacture and original design initiatives; specialist staff recruitment; presence in key overseas markets; and integrated IS/IT. Government support initiatives were not regarded as useful. Whilst these empirical findings contribute to our theoretical understanding of strategic issues in this international sector, the results have implication for industrialists and policymakers alike.