The Dark Side of the Advantages on Industrial Clusters in Taiwan

Shu-Ting Chan (), Hsi-Mei Chung () and Li-Hsuan Cheng ()
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Shu-Ting Chan: Commerce Development Research Institute
Hsi-Mei Chung: I-Shou University
Li-Hsuan Cheng: National Cheng-Chi University

Chapter Chapter 4 in Succession and Innovation in Asia’s Small-and-Medium-Sized Enterprises, 2021, pp 83-108 from Springer

Abstract: Abstract This chapter introduces why combining the innovation and succession decisions will be a critical point for the growth of SMEs by introducing the survey results of three industrial clustersIndustrial cluster in Taiwan in 2016. These three industrial clusters are the hosiery industryHosiery industry and the plumbing industryPlumbing industry in the middle of Taiwan, and the fastener industry in southern TaiwanTaiwan. Locating this discussion inside an industrial cluster is an important way to enhance the knowledge and competitive advantages for these SMEs in Taiwan. The findings of the survey illustrate the emergence and serious situation for SMEs in terms of succession and innovation. The authors found that not every SME can successfully search for innovation. The critical point is that given the changing environment, the resourcesResources or the capital accumulated by the founder may not work well to meet the future strategic positionStrategic position after succession. Among the necessary capital for future survivalSurvival, social capitalSocial capital is the most difficult to pass on to the next generation but it is usually the most critical type of capital for SMEs’ growth. SMEs inside an industrial clusterIndustrial cluster need to cooperate to accumulate the capital at the cluster level as well as at the firm level.

Keywords: Industrial cluster; Social capital; Interconnection; Plumbing industry; Screw industry; Hosiery industry (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-15-9015-3_4

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DOI: 10.1007/978-981-15-9015-3_4

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