Innovation in Taiwan

Editor: Shih-Chang Hung, Professor, National Tsing Hua University, Taiwan

Aug. 2018

Innovation is important to firm growth and economic development. This is particularly applicable to such countries as Taiwan, which, as a small island with limited resources, has historically pursued new wealth creation to justify its political sovereignty and earn international recognition. The literature on national innovation systems, for example, has documented Taiwan as a system of entrepreneurship, characterized as a bunch of SMEs and risk-taking entrepreneurs aspiring to innovate against competitive pressures and established giants (Hung & Whittington, 2011). Innovation prevails from the long-lasting OEM sector to the new age of information technology and digitalization. As high-tech industries such as personal computers and semiconductors began to emerge in the island in the 1980s, or at present with the coming of AI, VR/AR, cloud computing, blockchain, etc., innovation is expected to be more important than ever, and has the potential to give Taiwan the edge of reinforcing its competitiveness even further. This trend in turn has led many management scholars to study the antecedents and consequences of innovation and, as a result, to make important contributions to the literature ranging from strategy and marketing to organizational behavior and operations management. Hence the theme of this virtual issue: innovation in Taiwan. In general, innovation could be empirically studied at the level of intra-organization, inter-organization, and organizational context. At the intra-organizational level, innovation studies address how organizational functions or activities are structured or reengineered in a way to find opportunities and exploit resources to support new ways of doing business. At the inter-organizational level, innovation can be analyzed to study how economic actors make good use of such cooperative mechanisms such as clusters, systems, networks, mergers and acquisitions to secure power and trust for earning high returns and creating new ventures. In terms of the analysis for innovation in context, innovation studies can be broadly defined to include those concerned with how organizations exercise embedded agency to change institutional constraints and so define new rules of the game that better suit their interests.

Articles in the Virtual Issue
  • Organizational Innovation Vitality and Its Outcomes: Exploring the Moderating Effect of Time Pressure

    By Michael L.A. Hsu and Hsueh-Liang Fan

    Published Jun. 2011

    The effect of time pressure on employee creativity is controversial, and studies in examining the relationship between time pressure and employee creativity obtained conflicting results. This study updated the concept of organizational innovation climate into organizational innovation vitality, then examined the relationship of organizational innovation vitality and its outcomes (employees creativity and their job satisfaction), and explored the moderating effect of time pressure on the relationship between organizational innovation vitality and its outcomes. Data were collected from 470 R&...

  • Sincere or Insincere? Exploring the Relationship between Emotional Labor and Innovative Behavior

    By Sheng-Tsung Hou, Hsueh-Liang Fan and Wan-Chien Lien

    Published Sep. 2015

    Previous researches on emotional labor have shown that the display of required emotions has an effect on the performances of the employees. How individual employees respond to customers and adjust their emotions accordingly can be considered a demonstration of innovative behavior. However, there exists limited prior literature examining how emotional labor influences an employee’s innovative behavior. Collecting cross-level data from male truck drivers employed by a large transportation company in Taiwan, this study tested the relationships among role identification, emotional labor (surface a...

  • Critical Factors of Collaborative Commerce Adoption: An Empirical Study

    By Shin-Yuan Hung, She-I Chang, Kai-Chu Hsu and I-Cheng Chang

    Published Mar. 2010

    Collaborative commerce has recently become a killer application of information technology for business collaboration, which helps business sustain their competitive advantage by information sharing, process integration and collaboration. However, not many companies actually adopt collaborative commerce because of its complexity and high cost. This study is to examine critical factors of collaborative commerce adoption. An integrated model was conducted based on innovation diffusion theory. Four constructs (including: characteristics of collaborative commerce technology, organizational characte...

  • Institutional Work in Building Service Innovation

    By Min-Fen Tu and Shih-Chang Hung

    Published Dec. 2016

    We draw on the concept of institutional work to explore how strategic actors change institutional logics. Concerned with the “how” question, we adopt an in-depth case study to examine ITRI, a Taiwan-based statutory agency, which has successfully promoted the new institutional logics of service innovation. We identify three types of institutional work. The first is identity work in which ITRI engaged in defining the problem, developing an agenda, and restructuring organization positions. The second is professional work in which ITRI networked with professional communities, promoted foresights, ...

  • Untangling the Emergence of Dynamic Capabilities: Variety-inducing Organizational Routines for Technological Innovation

    By Sonya H. Wen and Ji-Ren Lee

    Published Jun. 2012

    How dynamic capabilities emerge and evolve in an organization has been a central inquiry in the literature on dynamic capabilities. Applying the lens of co-evolutionary dynamics, we explore how an organization undertakes strategic renewals and uses organizational routines in order to facilitate technological innovation, leading to the emergence of dynamic capabilities. We discuss our qualitative case study of the sequential strategic renewals that enabled a specialized semiconductor foundry (Taiwan Semiconductor Manufacturing Corp., TSMC) to transform from a technology-latecomer to a technolog...

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