Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Characteristics, Mechanism, and Routes of Interaction of Firm Competence: Case Study of Taiwanese Flat Panel Display
by Peng-Jung Lin, Jing-De Weng, Chun-Liang Lai Bey Rong Kung, Hsin-Mei Lin, Kai-Ping Huang, Joseph Lo Yuan Che

Abstract:
Traditionally, scholars suggest firm shall sequential to develop technology-oriented competence to enter other markets (Technology Promote Market, TPM). However, in practice, we observe contradiction that the international enterprises adopt the market-oriented perspective so as to first reflect on market, and then transfer external firm?s technologies and experiences to firms (Market Promote Technology, MPT). It is an interesting phenomenon and impact on conducting this research that motives to resolve the gap between the theoretical argument and practice. Thus, the purpose of the study is to explore the sequence between prioritize to develop technology and market competence, and characteristics, mechanism, and routes of interaction of small-sized firm competence. This research using the extended case method (ECM) compared two Taiwan FPD (Flat Panel Display) enterprises that produce TFT-LCD (Thin Film Transistor-Liquid Crystal Display) manufacturing equipment. We found that firms possessing the characteristics of improvement resources (CIR), develop technology competence first, and apply intra-organizational learning (intra-OL) mechanism and inside-out routes (IOR) to promote market competence. Conversely, firms having the characteristics of social resources (CSR), develop market competence first, and utilize inter-organizational learning (inter-OL) mechanism and outside-in routes (OIR) to promote technology competence. The finding signs important significance that small-sized firm devotes to prioritizing the development of the most valuable competence for the future, and executing the fitness of learning mechanism, and routes.

Keywords: technology competence, market competence, resource-based theory, organizational learning theory

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