The Research Of Critical Success Factors To Newly Emerging Industry Enterprises

In the course of new economy development in recent twenty to thirty years, with the diffusion of information technology and relative industries from developed countries to the whole world, the eastern-Asian nations or areas had also evolved their own new dominant industries. The reason why some of the emerging industries could become the predominant ones must be related to the critical success factors that are asserted variously in relevant research reports and theses from different points of view. Starting from studying and examining existing theories about industry development and those about enterprise development to generalize the factors that have great effect on the development of newly emerging industries for economy latecomers during the process of new economy development, and then by empirically analyzing the successful examples of newly emerging industry evolvement in economy latecomer areas (the IC industry in Taiwan area), this dissertation concluded the critical success factors to the development of enterprises in newly emerging industries.This dissertation consists of three main parts:Part One: Research on existing theories and establish the analysis model to determine the critical success factors in theory to newly emerging industries and enterprises. Study and analyze the key success factors stated in the theories of industry development and of enterprise development and then construct the industry analysis matrix as the analysis model.Part Two: Case analysis. Analyze the critical success factors to the development of the IC industry in Taiwan area from relevant research papers and theses. Part Three: Empirical analysis and conclusion. Integrate the analysis results from Part One and Part Two. Suggest hypotheses concerning the critical success factors and conduct empirical analysis with questionnaire observation. Based on the results of the empirical analysis, the critical success factors to the development of newly emerging industries could be classified into three major categories: factors of external environment, factors of industry and factors of enterprises. The critical success factors located in the three dimensions all have notable effect on the development of industries and enterprises; however, they weigh variously in different stages.The conclusions are:(1) Factors of external environment, of industry and of enterprises weigh variously in different stages of new industry and enterprise development. Just like what emphasized in the industry life cycle theory, the influential factors are different in each stage of industry development.(2) While the importance of each critical success factor alters through different stages of the development of a newly emerging industry, the government always plays a prominent role in every stage.(3) The most important critical success factor switches in different stages of new industry development. According to the result of empirical analysis on the development of the IC industry in Taiwan area, "technology innovation" is not the most critical success factor in this case, although it is generally viewed as the most crucial one to a newly emerging high-technology industry.(4) By the result of empirical analysis on the examples of the IC sub-industries in Taiwan area, different industries have distinct critical success factors due to different industry attributes and environmental conditions.(5) The development of a newly emerging industry is limited by the external environment. In other words, the latecomers are not able to imitate the success experiences from the advanced countries or areas.(6) As an economy latecomer, to develop a newly emerging industry, the government should be the initiator to put efforts and build a foundation so that the industry and enterprises could bring their forces into full play and produce a marked effect.(7) When possessing institutional linkage, an organization would have much higher possibility to survive. To an industry, "vertical specialization" is the institutional linkage, and it is also an effective strategy for the latecomers to develop new high-technology industry even if it is not the only one.(8) The experience of development of the IC industry in Taiwan area is a paradigm to illustrate a successfully evolved newly emerging industry. It demonstrates the excellent cooperation of concerted efforts from the government, the industry, the academic organizations and the R & D institutions. It shows that under the circumstances of getting extremely complicated high technologies along with new economy development and shortening technology or product life cycle as a result of swift market demand change, industry innovation has come into a new era in which the government, industry, academic organizations and R & D institutions work together as partners.(9) The most special feature of the IC industry in Taiwan area is its vertical specialization. Compared with its rivals in other developing areas or countries (especially Korea), the IC industry in Taiwan area possesses vertical specializationstructure that is the most unique success factor to its outstanding performance. Moreover, the real key point to the development of high-technology industry for economy latecomers is the top-level professionals.(10) "Industry cluster" is generated by the active participation of government and local inherent resources when observing from the source of its formation. Industry cluster plays a critical influential role behind the scenes in the development of newly emerging industries for economy latecomers.