Volume 2, Issue 2, April 2013, Page: 48-52
An Analysis of Competitive Strategy for Taiwan’s Aerospace Industry
Shu-Chen Chang, Department of Business Administration, National Formosa University
Guan-Yuan Lai, Graduate Institute of Business and Management, National Formosa University
Received: Mar. 19, 2013;       Published: Apr. 2, 2013
DOI: 10.11648/j.ss.20130202.14      View  2576      Downloads  125
Abstract
Previous studies related Taiwan’s aerospace industry mainly focus on technical research and development, production and information management, and partnerships. However, these studies lack to investigate competitive strategy of Taiwan’s aerospace industry using industrial organization theory. The main goal of this study is to investigate the current situation of the Taiwan’s aerospace industry. This study uses the threestage least square method to estimate the relationship among the market structure, behavior and performance. The empirical results show that market share has significant and positive effect on businessperformance in the whole aerospace industry. R&D investment ratio, the elasticity of capital use, the scale of domestic market, and the profit ratio have significant and positive impacts on the market share. In addition, the increases in profit ratio and human resources, as well as the electronic commerce could improve the capability of industrial R&D.
Keywords
Competitive Strategy; Industrial Organization Approach; Three-Stage Least Squares
To cite this article
Shu-Chen Chang, Guan-Yuan Lai, An Analysis of Competitive Strategy for Taiwan’s Aerospace Industry, Social Sciences. Vol. 2, No. 2, 2013, pp. 48-52. doi: 10.11648/j.ss.20130202.14
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