Abstract
The stellar growth of Taiwan's personal-computer (PC) industry over the past three decades represents a paradox. Participating in the global production system, local firms in Taiwan grew in association with established firms in the West. Despite their technical know-how, manufacturing prowess, and size, most leading Taiwanese firms did not develop their own capabilities in branding and marketing. A close examination of the historical evolution of the industry reveals that interactions with established companies in the West, in addition to local competition, decisively shaped capability development among latecomer firms. A few firms in Taiwan that eventually joined the ranks of global PC brands had been investing in marketing early, guided by a strategic vision rather than near-term economic calculation.
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