IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v39y2007i6p1346-1363.html
   My bibliography  Save this article

Spatial Clustering and Organizational Dynamics of Transborder Production Networks: A Case Study of Taiwanese Information-Technology Companies in the Greater Suzhou Area, China

Author

Listed:
  • You-Ren Yang

    (Department of Geography, National Taiwan University, Taipei, Taiwan 10617)

  • Chu-Joe Hsia

    (Graduate Institute of Building and Planning, National Taiwan University, Taipei, Taiwan 10617)

Abstract

Transborder investment by Taiwanese information-technology (IT) companies has driven the development of a new industrial space in the Greater Suzhou Area (GSA) of China over the last ten years. In this paper we aim to explore some characteristics of this expansion from the perspective of the organizational dynamics of global production networks. We found that foreign brand-name companies have played a key role in propelling this wave of investment in the GSA by Taiwanese IT companies. At the same time, their business strategies have influenced the mechanisms governing these Taiwanese companies' supply chains and have forged the dynamics of spatial agglomeration. We argue that the transborder extension of the production networks is interwoven with the exercise of power between enterprise organizations. Our findings suggest that interdependence among firms in close geographical proximity is inseparable from the asymmetrical power relations embodied in global commodity chains; a point emphasized by economic geographers as the main reason for transborder production shifts that result in the formation of new industrial spaces in developing countries. However, if these production networks can respond collectively to such a strict environment through instituting suitable organizational governance, then their competitive advantage will be enhanced, while also benefiting the host region's development through localization.

Suggested Citation

  • You-Ren Yang & Chu-Joe Hsia, 2007. "Spatial Clustering and Organizational Dynamics of Transborder Production Networks: A Case Study of Taiwanese Information-Technology Companies in the Greater Suzhou Area, China," Environment and Planning A, , vol. 39(6), pages 1346-1363, June.
  • Handle: RePEc:sae:envira:v:39:y:2007:i:6:p:1346-1363
    as

    Download full text from publisher

    File URL: http://epn.sagepub.com/content/39/6/1346.abstract
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhihua Xu & Anthony Yeh, 2013. "Origin Effects, Spatial Dynamics and Redistribution of FDI In Guangdong, China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(4), pages 439-455, September.
    2. Zhou, Qingna & Gao, Ping & Chimhowu, Admos, 2019. "ICTs in the transformation of rural enterprises in China: A multi-layer perspective," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 12-23.
    3. Chen, Liang-Chih, 2015. "Building extra-regional networks for regional innovation systems: Taiwan's machine tool industry in China," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 107-117.
    4. Canfei He & Qi Guo & David Rigby, 2017. "What sustains larger firms? Evidence from Chinese manufacturing industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(2), pages 275-300, March.
    5. Daniel You‐Ren Yang & Neil M. Coe, 2009. "The Governance of Global Production Networks and Regional Development: A Case Study of Taiwanese PC Production Networks," Growth and Change, Wiley Blackwell, vol. 40(1), pages 30-53, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:39:y:2007:i:6:p:1346-1363. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.