Abstract
Atsuo (2001) mentioned “During the past two decades, Taiwanese enterprises had successfully entering the China market and continuously invested in various regions. The supply chains are emerging and resulted in industrial cluster formations. Electric industrial clusters were established in Pearl River Delta at the first place, and followed high-tech industrial clusters established in Yangtze River Delta.” To understand the root cause of cluster formation and its success, a resource-based model is proposed and tested. The model tests the relationship between complementary resources integration and profitability & the growth rate. The results of empirical study indicate that market aspect and knowledge aspect of complementary resources integration had positive effects on the profitability, and market aspect of complementary resources integration had a weak and positive effect on the growth rate. In addition, the advantages and obstacles of operating a business in Yangtze River Delta by Taiwanese enterprises are studied and discussed.