Computing Reviews
Today's Issue Hot Topics Search Browse Recommended My Account Log In
Review Help
Search
US firms’ business competence in the Taiwanese IT industry
Chen P., Kim Y., Springer International Publishing, New York, NY, 2016. 234 pp. Type: Book (978-3-319320-27-4)
Date Reviewed: Feb 2 2017

It has been a few years since I have taught international political risk analysis and global issues, two courses where the subject of multinational corporations (MNCs) or multinational enterprises (MNEs) is covered prominently. One of the major topics is organizational structure, which considers the relationship between the host and the home country. At that time, the typology was simple: MNCs in the host country could either buy into the product wholeheartedly, with everything uniformly being directed from the home country from the shape of the French fries to the taste of the hamburger; it could adapt to the environment and cater to regional tastes, such as serving beer with a meal or putting together a shrimp and pineapple pizza catering to the taste of its local clientele; or it can be totally directed by local tastes so that the product does not bear any resemblance in the host market to the original product from the home country, as in the case of serving rice with hamburger and spaghetti in the Philippine market.

This book goes even further than that simple classification of the workings of American MNCs in the information technology (IT) industry of Taiwan. It is a well-researched piece that covers 16 major corporations among which are Dell, Garmin, General Electric (GE), Google, Microsoft, International Business Machines (IBM), and Intel, to name a few. It uses interviews with highly placed individuals in the companies (top managers) as well as qualitative and quantitative primary data from different sources during different time periods in both English and Chinese. The study was conducted during a ten-year time period during three years--1997, 2002, and 2007. Careful triangulation was undertaken by trying to obtain data from many different sources in order to avoid bias from a single source.

The main focus of the study is to determine the complex interactions that exist among the three main drivers of an MNC’s activities in this particular country (Taiwan) in this particular industry (IT): the subsidiary, the head office, and the host country. Each one carries a different concern, especially when it comes to strategy formation and change within the company. The subsidiary is concerned about autonomy, resources, and the maintenance of good parent-subsidiary relations. The head office thinks about the formalization of rules and procedures and the roles of centralization and internationalization; the host country’s concerns have to do with the stability of the economy, legal conditions, and environmental accountability. All of these are analyzed on the basis of the various functional units of the company, which specifically are research and development (R& D), production, marketing, sales, and service.

The authors do a good job of providing the reader with a thorough review of the literature. They employ a profusion of tables and figures to provide their data, and include information showing various elements and indicators that measure relevant factors for change. Although they make use of other terms to describe the typology above--global integration, regional multifocal strategies, and local responsiveness--the study has made contributions beyond those done in the 1990s of European, American, and Japanese companies in eight industries in Spain. Their study indicates that there is more integration and more local responsiveness taking place. However, strategic fit and system fit in the subsidiary level versus functional unit level will need further study, exposing a gap in terms of the issues related to functional units within the foreign owned subsidiary.

Thus, the authors acknowledge several shortcomings of their study. The case study method of studying one industry with one home in one host may not be generalizable. Focusing on the largest companies in the industry may tarnish applicability to companies of other sizes in the same industry as well as to other industries. The developed versus developing country choice of where the study should be undertaken is also problematic since there are other viable candidates such as Singapore, Hong Kong, South Korea, and so on.

Given the complexity of MNC operations at various levels in any foreign country, it is no wonder that the latest business news discusses McDonald’s efforts at selling portions of its ownership in China, Hong Kong, and Japan in a desire to collect revenue without the costs and headaches of managing hundreds of stores in many different environments. Will such a trend have an impact on the future of MNC operations worldwide? Only time will tell and a future study can focus on that.

Reviewer:  Cecilia G. Manrique Review #: CR145041 (1704-0231)
Bookmark and Share
  Featured Reviewer  
 
General (K.7.0 )
 
 
Business (J.1 ... )
 
Would you recommend this review?
yes
no
Other reviews under "General": Date
CDP review manual (5th ed.)
Lyon L., Lord K., Van Nostrand Reinhold Co., New York, NY, 1991. Type: Book (9780442007263)
Jul 1 1992
The MIS manager’s guide to performance appraisal
Lyon L., Gluckson F., McGraw-Hill, Inc., New York, NY, 1994. Type: Book (9780070392724)
Mar 1 1995
Every manager’s guide to information technology (2nd ed.)
Keen P., Harvard Business School Press, Boston, MA, 1995. Type: Book (9780875845715)
Nov 1 1995
more...

E-Mail This Printer-Friendly
Send Your Comments
Contact Us
Reproduction in whole or in part without permission is prohibited.   Copyright 1999-2024 ThinkLoud®
Terms of Use
| Privacy Policy