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This study uses data on 582 electronics and information technology firms in Taiwan for the period 1997-2005 to investigate the hypothesis that technological diversification increases the extent of organizational divisionalization under firm growth. This study applies competence-based theory to argue that firms spread the technological competence base to achieve firm growth. However, in the face of firm growth, managers of multi-technology firms often utilize a multi-division structure to manage their various technologies based on their operating characteristics or needs. Furthermore, the findings of this study indicate that complementary assets moderate the negative relationship between technological diversification and organizational divisionalization. For firms with specialized complementary assets, multi-technology firms may be observed to consolidate related-technology activities into fewer divisions, facilitating the utilization of these complementary assets in conjunction with other divisions

Although the topic of technological diversification has been a major source of research, only a few studies have explored the determinant variables of technological scope decisions. The present study enhances our understanding of the determinants of a firm's technological scope strategy. After reviewing the related literatures, we proposed and empirically tested a conceptual model from the perspective of the firm's environment, strategic orientation, and resources. The results suggest that the coherence between technological scope decisions and proposed model is significantly related to performance

The purpose of this study was to investigate how Taiwanese high-tech firms' foreign direct investment (FDI) leads to agglomeration and competition among cities in China. By using social network analysis to analyze 1,111 subsidiaries affiliated with 270 multinational corporations (MNCs) during the years between 1988 and 2006 in 30 major Chinese cities, this study finds that: 1) agglomeration in Chinese cities falls into three primary categories: the hub cluster, the communication-extended cluster, and the computer-extended cluster. Among the aforementioned clusters, the hub cluster is the most critical in terms of firm location, and therefore is often a high-priority investment site for Taiwanese high-tech firms. 2) Chinese cities fall into four primary groups, or blocks: the core block, the coast block, the inland block, and the periphery block; these groups were determined by applying a structural equivalence analysis of which members of each type are in competition with one another. By linking the findings of the urban network characteristics to Chinese regional economic policies, this study provides guidance to aid executives in determining the optimal location for future FDI. Implications and suggestions for host country governments in terms of firms' investment strategies are also discussed

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