ABSTRACT
This chapter is based on the findings of an research project that started in January, 2001. In the globalising economy, cross-border business networks are increasingly important and constitute the channels of capital, technology, people, and information flow. Hybridisation occurred where forms became separated from existing practices and recombined with new forms and new practices. Transfer and hybridization could be geographically sensitive strategies for firms, as reflexive agents, to protect and to reinforce their competence in the evolution of the firm-territory nexus. Taiwanese electronics firms have clustered geographically in two regions, mainly the Pearl River Delta and the Yangzi River Delta respectively. By the mid-1990s, a decade after Taiwanese small and medium-sized enterprises first went to China, the majority of the cross-strait investments shifted from traditional sectors, such as garments and footwear, to informatics industries, particularly personal computer components and peripherals.
