ABSTRACT
Taiwan’s electronics industry is characterized by many small and medium enterprises, especially in the downstream end product market where industry concentration is low. The most important structural factor determining industry performance in this area is the ability of a firm to enter the industry. Profit differences within industries are important, because they reflect the fact that competitors pursue different strategies within the same industry, with differing levels of efficiency. Different industries afford competitors different opportunities to make commitments of long-lived resources. The capability of rapid response to customer problems and the ability to identify potential problems before the final products are shipped become important competitive factors. Effective communication to correct the source of failures and the development of quality assurance programs are central to the industries’ long-term success.
