ABSTRACT
This chapter discusses why industries have good economic performance from the perspective of organizational sociology. The chapter focuses on Dongguan, one of 21 medium-sized cities in the southern region of Guangdong province, in southeast coastal China. It explores the transformation of the organizational network of the Taiwanese shoe industry in Dongguan. Cheng's study on the historical formation and transformation of the governance structure of the Taiwanese footwear industry also illustrates the importance of the power perspective, even in the network-like organizational structure in Taiwan. The chapter proposes a new concept, situational trust, to describe the transformations of the core feature within the production network of Taishang from Taiwan to China. It argues the transformation of the production network could be the missing link for us to understand the process of how Taishang upgrades itself from Original Equipment Manufacturers (OEM) and Original Design Manufacturer (ODM) to Original Brand Manufacture (OBM).
