Empirical Study on the Operational Decisions of Taiwanese Enterprises

Shu-Hsing Hsu

Graduate Institute of East Asian Studies, National Chengchi University, Chinese Taipei.

DOI: 10.4236/me.2014.512101                

Abstract

This study addresses the lack of empirical analysis on Taiwanese enterprises operating in China. A questionnaire-based survey was used to assess the business decisions of Taiwanese companies operating in the Chinese cities of Dongguan, Shenzhen, Shanghai and Kunshan. The empirical results indicate that direct input costs and business types have an appreciable impact on the decision of mainland-based Taiwanese enterprises to relocate operations. Additionally, government financing, administrative ability, and improvement in operating costs can effectively reduce the likelihood of market exit by a Taiwanese enterprise.

Keywords

Taiwanese Enterprises, Operational Decision, Probit

Conflicts of Interest

The authors declare no conflicts of interest.

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