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Examining the Impact of Internationalization and Competitive Advantages on Enterprise Performance in Taiwan’s Computer Numerical Control Machine Industry

Author

Listed:
  • Hsing-Kuo Liao

    (Department of Industrial Education and Technology, National Changhua University of Education, No. 2, Shi-Da Road, Changhua City 500, Taiwan)

  • Chin-Wen Liao

    (Department of Industrial Education and Technology, National Changhua University of Education, No. 2, Shi-Da Road, Changhua City 500, Taiwan)

  • Cheng-Chi Chen

    (Department of Industrial Education and Technology, National Changhua University of Education, No. 2, Shi-Da Road, Changhua City 500, Taiwan)

  • Tzu-Wen Chen

    (Department of Industrial Education and Technology, National Changhua University of Education, No. 2, Shi-Da Road, Changhua City 500, Taiwan)

Abstract

An enterprise must have good operating performance to operate continuously. A good company itself must have a good management team and a large enough market to operate. Taiwan is located in East Asia, and has neighboring countries, such as Japan, South Korea, and the Philippines. Taiwan’s machine tools industry cannot be developed on a large scale due to the geographical environment and land area restrictions. Enterprises are constrained by the external environment, which includes economic cycles, raw materials supply, user demand, and other factors that influence their performance. This is the primary challenge currently faced by Taiwan’s CNC industry. According to relevant research, companies can utilize various strategic models to identify operational shortcomings from the perspective of their employees, in order to enhance business performance. Therefore, Taiwan’s machine tool industry has to be extended to a larger scale. In the international market, only by exporting products and, then, taking full advantage of higher-quality capabilities, can we create good corporate performance. Therefore, internationalization is an important factor for Taiwan’s companies to improve their operating performance. This article uses Taiwan’s machine tools industry to explore the impact of factors, such as international perspectives and competitive advantages, on operating performance; this study selects 62 companies as a sample, the period is 2022. and analyzes the data type using class regression. The empirical results show that in the initial stage of internationalization, internationalization and competitive advantages help companies improve their operating performance. The industrial environment has a positive regulatory effect on internationalization and enterprise performance. However, when the company reaches the stage of internationalization, its operating performance begins to decline. Therefore, companies must recognize their own operating capabilities and create a more favorable operating performance under internationalized strategies. The important factor is that only through continuous innovation can companies gain an advantage in their long-term operations. With the advent of the era of Industry 4.0, industry knowledge is highly intensive and competition within the international environment is fierce. Companies should plan for a long-term competitive advantage to improve enterprise performance.

Suggested Citation

  • Hsing-Kuo Liao & Chin-Wen Liao & Cheng-Chi Chen & Tzu-Wen Chen, 2023. "Examining the Impact of Internationalization and Competitive Advantages on Enterprise Performance in Taiwan’s Computer Numerical Control Machine Industry," Sustainability, MDPI, vol. 15(21), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:21:p:15652-:d:1274784
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    References listed on IDEAS

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    1. Md. Touhidul Islam & Md. Aminul Islam & Muhammad Muazzem Hossain & Oluwaseyi Ebenezer Olalere, 2023. "Internationalization of SMEs: A Developing Country Perspective," Sustainability, MDPI, vol. 15(15), pages 1-13, July.
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    3. Sattar A. Mansi & David M. Reeb, 2002. "Corporate Diversification: What Gets Discounted?," Journal of Finance, American Finance Association, vol. 57(5), pages 2167-2183, October.
    4. Pompeo Della Posta, 2021. "An analysis of the current backlash of economic globalization in a model with heterogeneous agents," Metroeconomica, Wiley Blackwell, vol. 72(1), pages 101-120, February.
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