Local Clustering and Organizational Governance of Trans-border Production Networks: A Case Study of Taiwanese IT Companies in the Greater Suzhou Area
Resource
地理學報, 36, 023-054
Journal
地理學報
Journal Issue
36
Pages
023-054
Date Issued
2004-06
Date
2004-06
Author(s)
Yang, Y.R.
Hsia, C.J.
Abstract
This article aims to explore the formation of new industrial space in the Greater Suzhou Area (GSA) in china driven by recent trans-border investment of Taiwanese IT companies in the last eight years through an investigation of the governance mechanisms of the local supply chains as well as its implication to regional development. We found that the functions of Taiwanese IT companies’ branches in the GSA had increased, and the spatial division of labor between Northern Taiwan and the GSA is changing gradually, but the local branches’ R&D activities are still limited. Furthermore, we also observed that foreign brand-name companies had played important roles in propelling this wave of Taiwanese IT companies’ trans-border investment in the GSA. Although strategic cooperation between Taiwanese OEM/ODM companies and foreign brand-name companies was consolidated, the pressure from foreign brand-name companies has changed the governance mechanisms of Taiwanese companies’ supply chains and forged the dynamics of spatial agglomeration. We argue that the production networks’ trans-border extension is interwoven with the exercise of power between enterprise organizations. The findings of the study suggest that interdependence among the firms in close geographic proximity that economic geographers emphasize as the main reason for the formation of new industrial spaces in developing countries due to global cross-border production shift is inseparable from the asymmetric power relations embodied in the global commodity chains.
Subjects
跨界生產網絡
組織治理機制
聚集
全球商品鏈
權力關係
Trans-border production network
Cluster
Organizational governance
Global commodity chain
Power relation
Type
journal article
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