Abstract
Former studies on Taiwanese investors (Taishang) in China show that there are few Chinese suppliers in Taishang’ supply chain. However, many local firms have been included in the production network of Taishnag since 2008 because of the global financial crisis. Therefore, in this paper, I use a Taiwanese high-tech enterprise, located in the Pearl River Delta region, as a case to examine how the transformation of production network in influencing cooperation and competition among Taiwanese buyers, Taiwanese suppliers and Chinese suppliers. Meanwhile, this paper uses the concept of "asymmetric dependence" to explain the relationship of trust, power, and institutions between Chinese supplier and Taiwanese buyers. In this situation, the firm who occupies advantageous position in the supply chain would enjoy the fruit of the trust relationship.