A Recognition and Response Strategy for Political Risks: Taiwanese Bicycle Firms in Mainland China

Chaang-Yung Kung ； Tong-Kau Liu ； Chin-Ming Wang

《Asia Pacific Management Review》 12卷4期 (2007/08) Pp. 191-204

https://doi.org/10.6126/APMR.2007.12.4.02

並列摘要

In recent years an increasing number of firms have invested in China's market leading to increased interest in political risks Taiwanese firms take into account not only the risks that other firms face in China, but also the antagonism between Taiwan and China. When the Taiwan's government rotates, additional political risk is incurred.
Using empirical research from the Taiwanese bicycle industry, this study examines firm recognition, evaluation and response to the political risks of investing in China. RBV (resource-based view) and cognitive learning theory form the theoretical background of the study. The CEOs of 145 Taiwanese bicycle makers were surveyed, and the data were analyzed by a variety of statistical approaches. The result revealed that assembly firm recognized political risks more rapidly than final product bicycle makers, and that the response strategies to political risks are significantly different before and after parties in power Taiwan change. These findings showed significant differences from previous academic reviews. The contribution of this study is to extend RBV. In addition, the notion of quanxi also appeared as an important factor. These findings may provide a reference for foreign investors interested in expanding their investments in Mainland China.

並列關鍵字

Political risks ； Response strategies ； Bicycle industry ； Taiwan firm ； Mainland Chin

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