A Study On Supply Chain Partnership Management Of Taiwanese Corporations In China

Since China opened up its market to foreign investments, the Chinese economy has been growing at an astounding rate. China's high economic growth, cheap production cost and enormous market have attracted foreign investments and corporations worldwide. Therefore, it should be no surprise to see Taiwanese enterprises being highly prominent in China's economy.Taiwanese corporations inevitably play a pivotal role in China's new economy because of two regions' geographic proximity and because they share the same language and common cultural origins. In addition, the continual pressure for corporations to grow profitably in Taiwan's saturated market is also another incentive for business to enter the Chinese market.Taiwanese investors in China have come progressively active in recent years because enterprises hope to achieve success in China by making an early entry in the market. Taiwanese corporations are able to duplicate and transfer their successful experience in Taiwan and technology "know-how" in China and establish themselves in the market promptly.This article focuses specifically on the development and future of supply-chain relations between Taiwanese manufacturers and their corresponding suppliers. In addition, this article also investigates the content and characteristic of value-chain in relation to supply-chain management. A successful partnership will be beneficial for all parties involved.The selection of supply-chain partner has a big impact on the ultimate success of businesses, and this is especially true for international corporations and foreign investors in China. Therefore, corporations' assessment of supply-chain partners should be evaluated from a strategic perspective, since the company's survival and future development depend on it.Taiwanese corporations are confronted by challenging issues in supply-chain management. Suppliers and customers can not communicate effectively and fail to establish common standards for product quality, competitive pricing, and mutual understanding of each other. Moreover, the unique natures of Taiwanese corporations induce additional complexity to supply-chain management between the Taiwan headquarters and corresponding branch companies in China. Taiwanese corporations have to deal with the uncertainty and instability inherent in China-Taiwan relations which will influence government policies on both sides of the Taiwan Strait. Hence, Taiwanese corporations need to be diligent in anticipation changes in both government regulation and supply-chain management.It is of paramount importance for Taiwanese investors to realize the dynamic nature of supply-chain management between China and Taiwan, and to identify the necessary actions required to guarantee corporation's survival and success in China's unique market. Therefore, Taiwanese corporations need to have extensive "local knowledge" and be extremely flexible to adapt to their volatile environment.Globalization in the 21st century will be more prominent than ever before as international corporations extend their influence to potential markets worldwide. This article examines the supply-chain management necessary for foreign investors to operate successfully in the Chinese market. Specifically, this article focuses on the role Taiwanese enterprises in China and their application of supply-chain management in China's developing economy. Reference can be made with respect to foreign investment to illustrate the business model and supply-chain management employed by Taiwanese corporations. Taiwanese corporations are in the stage of continual growth, and how to integrate resources successfully from both Taiwan and China is a critical issue for corporation management and market strategists.