Strategic positioning of Taiwan in the outsourcing market: Evidence from information technology services and electronic manufacturing outsourcing to China

In outsourcing relationships with China, the Electronic Manufacturing (EM) and Information Technology Services (ITS) industry in Taiwan may possess such advantages as the continuing growth of its production value, complete manufacturing supply chain, low production cost and a large-scale Chinese market, and language and culture similarity compared to outsourcing to other countries. Nevertheless, the Council for Economic Planning and Development of Executive Yuan (CEPD) found that Taiwan's IT services outsourcing to China is subject to certain constraints and might not be as successful as the EM outsourcing (Aggarwal, 2003; CEPD, 2004a; CIER, 2003; Einhorn and Kriplani, 2003; Kumar and Zhu, 2006; Li and Gao, 2003; MIC, 2006). Some studies examined this issue, but failed to (1) provide statistical evidence about lower prevalence rates of IT services outsourcing, and (2) clearly explain the lower prevalence rates of IT services outsourcing by identifying similarities and differences between both types of outsourcing contexts. This research seeks to fill that gap and possibly provide potential strategic guidelines to ITS firms in Taiwan. This study adopts Transaction Cost Economics (TCE) as the theoretical basis. The basic premise is that different types of outsourcing activities may incur differing transaction costs and realize varying degrees of outsourcing success due to differential attributes of the transactions in the outsourcing process. Using primary data gathered from questionnaire surveys of ninety two firms, the results from exploratory analysis and binary logistic regression indicated that (1) when outsourcing to China, Taiwanese firms' ITS outsourcing tends to have higher level of asset specificity, uncertainty and technical skills relative to EM outsourcing, and these features indirectly reduce firms' outsourcing prevalence rates via their direct positive impacts on transaction costs; (2) Taiwanese firms' ITS outsourcing tends to have lower level of transaction structurability relative to EM outsourcing, and this feature indirectly increases firms' outsourcing prevalence rates via its direct negative impacts on transaction costs; (3) frequency does influence firms' transaction costs in ITS outsourcing positively, but does not bring impacts into their outsourcing prevalence rates, (4) relatedness does influence firms' transaction costs positively and prevalence rates negatively in ITS outsourcing, but its impacts on the prevalence rates are not caused by the mediation effects of transaction costs, and (5) firm size of outsourcing provider does not affect firms' transaction costs, but does affect their outsourcing prevalence rates in ITS outsourcing directly and positively. Using primary data gathered from face-to-face interviews of executives from seven firms, the results from inductive analysis indicated that (1) IT services outsourcing has lower prevalence rates than EM outsourcing, and (2) this result is mainly attributed to Taiwan's core competence in manufacturing and management and higher overall transaction costs of IT services outsourcing. Specifically, there is not much difference between both types of outsourcing context in the transaction characteristics of reputation and most aspects of overall comparison. Although there are some differences in the feature of firm size of the outsourcing provider, the difference doesn't cause apparent impacts on firms' overall transaction costs. The medium or above medium difference in the transaction characteristics of asset specificity, uncertainty, frequency, technical skills, transaction structurability, and relatedness has caused higher overall transaction costs for IT services outsourcing. This higher cost might cause lower prevalence rates for ITS outsourcing relative to EM outsourcing. Overall, the interview results are consistent with the statistical analyses and provide support to my expectation that in outsourcing to China, Taiwan's electronic manufacturing firms do have lower prevalence rates of IT services outsourcing relative to EM outsourcing due to higher transaction costs caused by certain attributes. To solve this problem, firms' management should aim at identifying alternative strategies and strive to reduce their overall transaction costs of IT services outsourcing by initiating appropriate strategies which fit their environment and needs.

Planning and evaluation of Business English course in compliance with internationalization in Taiwan: A case study of Tainan Women's College of Arts & Technology

In compliance with the economic internationalization movement and the development of Asia-Pacific Regional Operation Center (APROC) in Taiwan, international business has become more and more important. To sustain favorable trade balances every year and the promotion of APROC in Taiwan, more and more talent with knowledge and skills of Business English are needed. As a consequence, it is necessary to make Business English curriculum appropriate to meet the emerging needs.^ Two groups, experimental and control, received the revised or traditional Business English course to answer the question, "Does the Business English curriculum at Tainan Woman's College of Arts & Technology (TWCAT) meet the needs of students?" Ninety-five subjects were randomly selected from the commercial departments at TWCAT and then randomly assigned to the two groups. In addition, the Business English scores of the subjects' previous semester were collected and analyzed to justify the random selection and assignment. The finding was that their initial equivalence was proved.^ A questionnaire for students and another one for the business community were administered to facilitate data collection and analysis. The results of the questionnaires were used to modify the curriculum content of Business English.^ A final-term examination was given to the subjects at the end of the pilot study of Business English in early May of 1998. The resulting scores of the examination were used to determine if there was a significant difference in learning achievement between the students of the two groups.^ Using Independent Samples Test, significant results indicated that the experimental group had higher level of learning Business English than the control group. The finding supports the hypothesis of this study.^ Recommendations based on these results are that the revised curriculum be adapted and used by TWCAT because it better meets student needs. ^

Activity streets as economic opportunity generators: Case study of the Langa Township, Cape Town, South Africa

The Republic of South Africa since the 1948 inception of Apartheid policies has experienced economic problems resulting from spatially dispersed growth. The election of President Mandela in 1994, however, eliminated the last forms of Apartheid as well as its discriminatory spatial, social, and economic policies, specially toward black Africans. In Cape Town, South Africa, several initiatives to restructure and to economically revitalize blighted and abandoned township communities, like Langa, have been instituted. One element of this strategy is the development of activity streets. The main questions asked in this study are whether activity streets are a feasible solution to the local economic problems left by the apartheid system and whether activity streets represent an economically sustainable approach to development. An analysis of a proposed activity street in Langa and its potential to generate jobs is undertaken. An Employment Generation Model used in this study shows that many of the businesses rely on the local purchasing power of the residents. Since the economic activities are mostly service oriented, a combination of manufacturing industries and institutionally implemented strategies within the township will have to be developed in order to generate sustainable employment. The result seem to indicate that, in Langa, the activity street depend very much on an increase in sales, pedestrian and vehicular traffic flow. ^

Cruise ship port planning factors

The predictions contained within this dissertation suggest further rapid growth of the cruise industry and the requirement for additional cruise ship berthing worldwide. The factors leading to the tremendous growth in the cruise marketplace are identified and individually addressed. Unfortunately, planning factors associated with the design and construction of cruise ship seaports are not readily available and methods to manage this growth have not been addressed. This dissertation provides accurate and consolidated planning factors essential for comprehensive consideration of cruise ship requirements and design of growing cruise ship ports. The consolidation of these factors results in faster and better informed choices for the port owner/operator with regard to port expansion. Furthermore, this dissertation proposes development of new systems to better manage increasing passenger and ship traffic. If implemented, this will result in optimized port systems providing a greater level of service to passengers and port authorities while simultaneously minimizing environmental and economic impact. ^

Development of a medium-capacity guideway transit planning guide

Rapid population increase and booming economic growth have caused a significant escalation in car ownership in many cities, leading to additional or, multiple traffic problems on congested roadways. The increase of automobiles is generating a significant amount of congestion and pollution in many cities. It has become necessary to find a solution to the ever worsening traffic problems in our cities. Building more roadways is nearly impossible due to the limitations of right-of-way in cities. Studies have shown that guideway transit could provide effective transportation and could stimulate land development. The Medium-Capacity Guideway Transit (MCGT) is one of the alternatives to solve this problem. The objective of this research was to better understand the characteristics of MCGT systems, to investigate the existing MCGT systems around the world and determine the main factors behind the planning of successful systems, and to develop a MCGT planning guide. The factors utilized in this study were determined and were analyzed using Excel. A MCGT Planning Guide was developed using Microsoft Visual Basic. ^ A MCGT was defined as a transit system whose capacity can carry up to 20,000 passengers per hour per direction (pphpd). The results shown that Light Rail Transit (LRT) is favored when peak hour demand is less than 13,000 pphpd. Automated People Mover (APM) is favored when the peak hour demand is more than 18,000 pphpd. APM systems could save up to three times the waiting time cost compared to that of the LRT. If comfort and convenience are important, then using an APM does make sense. However, if cost is the critical factor, then LRT will make more sense because it is reasonable service at a reasonable price. If travel time and safety (accident/crush) costs were included in calculating life-cycle “total” costs, the capital cost advantage of LRT disappeared and APM could become very competitive. The results also included a range of cost-performance criteria for MCGT systems that help planners, engineers, and decision-makers to select the most feasible system for their respective areas. ^

International tourism : can it contribute to Nigeria's economic growth as other industrial sectors?

The growth of international tourism and the attendant economic benefits to the world nations, has been phenominal since the end of the second world war. It is considered that the industry's upsurge will continue even in the phase of various constraints exemplified in high fuel cost, constant increase in fares and the threatening world-wide recessions. Developed as well as developing countries have gained substantially from the industry. A recent development shows increasing tourist traffic towards developing countries, while developed countries still hold their fort in stable growth of tourist receipts. The strategic beneficial effects of international tourist industry are often quantified in terms of foreign exchange earnings, employments offered, and the Real Estate super-structures; but in general,the industry has innumerable direct and indirect benefits to any nation engaging in the trade. The objective of this thesis is to demonstrate by comparative analysis and proven parameters that the international tourist industry which is given low priority in development in Nigeria, can equally contribute to the nation's economic growth as other industrial sectors which receive high priority and patronage in development. The data for this paper are gathered from primary sources which are i) responses by the Federal and State Governments' tourism-related offices; ii) government publications e.a. the Third National Development Plan of Federal Republic of Nigeria; and iii) Books and collections. The secondary sources include reports,periodicals and hospitality industry publications. To formally establish the international tourist industry in Nigeria, all the governments (Federal, State and Local) and the private sector in the country, should commence the development of the industry with research and feasibility studies, to be followed by proper planning at all levels and based on the result of the research and feasibility studies.