In today's global business, location-specific factors represent the special advantages accruing to MNEs investing in a particular host country. First, this study aims to assess the importance of location-specific factors in China, and how these factors have changed over the years 2003, 2004, and 2005. Second, this case study intends to investigate the strategies utilised by the Taiwanese respondent MNE subsidiaries to exploit China's location-specific factors, and then explore the firm performance of the Taiwanese respondent subsidiaries in China. The findings of this study suggest that most Taiwanese respondent MNEs, based on a cost leadership strategy, are keen to exploit China's lower-cost labour resources. However, the reality that the average labour cost in China (especially in the coastal provinces), is rising is also reflected in this survey result. Moreover, the high level of local sales seems to show that Taiwanese companies are creating more marketing networks to expand local sales in China's domestic market (a growth strategy). Taiwanese respondent firms are satisfied with their subsidiary performance in China, and are positive about the recent developments of China's location factors.
Many airports are being expanded from transportation centers to economic hubs. This new type of urban area has been termed the aerotropolis or airport metropolis and is meant to function as an economic center with land-use that link local and global markets. However, to find the optimal means for developing an aerotropolis requires additional research, particularly from the viewpoint of long-term public policy and planning. In this study, a multiple criteria decision making model was applied to explore the key factors for successfully building an aerotropolis. We first applied the Decision-making Trial and Evaluation Laboratory based Analytical Network Process to construct the complex system and influential weights. A modified VIKOR method was then utilized to explore the gaps between the aspiration levels and the current situation. In addition, considering the uncertainty of decision-makers, fuzzy theory was integrated into the model. Data from the Taoyuan Aerotropolis in Taiwan were used to demonstrate this method. The results indicate that internationalization is the most crucial factor within the system, and that administrative efficiency has the highest degree of net influence. The largest weighted gap to the examined aspiration level is adequate regulation. Management implications are provided in the discussion.
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