Abstract
In line with systems thinking in the OR/MS field, this paper develops a soft, socialized system of industry based upon recognizing the importance of social constructionist rules and resource in industrial activity. This system concept is then applied empirically to Taiwan's industrial context that is historically rooted in the society. On examination, systemic rules of Taiwanese industry include those of strong family control, vertical dis-integration, opportunistic diversification, volume expansion, cost leadership, OEMs, pluralistic, opportunistic, personal exchange relationships and opportunistic external acquisition of expertise. Systemic resources consist of capital ownership, patriarchal authority, entrepreneurism, trustworthy family managers, networks, satellite manufacturing system: trading agents, crub markets, industry externalities and hard-working employees.