Empirical Study on the Operational Decisions of Taiwanese Enterprises

This study addresses the lack of empirical analysis on Taiwanese enterprises operating in China. A questionnaire-based survey was used to assess the business decisions of Taiwanese companies operating in the Chinese cities of Dongguan, Shenzhen, Shanghai and Kunshan. The empirical results indicate that direct input costs and business types have an appreciable impact on the decision of mainland-based Taiwanese enterprises to relocate operations. Additionally, government financing, administrative ability, and improvement in operating costs can effectively reduce the likelihood of market exit by a Taiwanese enterprise.