The Changing Pattern of Value Creating Activities: Evidence from Taiwanese Manufacturing Firms in China

Abstract

Chinese and Taiwanese share many similarities in their culture, language, politics and lifestyle. And Taiwanese firms are quite familiar with the institutions and economic environment in China, therefore, Chinese market will continue to be an important market for Taiwanese firms. This study takes Taiwanese manufacturing firms in China as an example, and refers to the Dunning's framework to develop a conceptual framework to examine the changing pattern of value creating activities in China. This study finds firms with different investment motivation adopt different combinations of value creating activities in China.