The information technology industries in Taiwan and China have both experienced significant growth in the past decades. In order to grow and expand, they are unavoidably competing directly in global marketplace. However, Taiwan and China also have generally recognized relative strengths and weaknesses in terms of resources, and technological capacities and capabilities. Although many scholars and experts have already argued that there are plenty of potential areas for cross-strait cooperation between firms of these two countries based on mutually beneficial complementarities, there are limited studies based on both competing and cooperating nature for the most promising IT firms in both Taiwan and China, and very few of them have provided relevant research of successful cross-strait strategies based on integrated perspective and analysis with both theoretical support and empirical evidences aiming at Taiwanese MNEs which are engaging in investment in China.

From perspectives of this competing and cooperative nature, there are several issues to be studied: (1) Can we make a research and find out if Taiwanese IT firms are enhancing their innovation and performance to increase competitive advantage to meet global competition from their current investment activities in China? (2) Can we find reliable data sources and analyze past performance data to identify a set of determining factors and propose strategies including competition and cooperation that help explain past success and assure further technological development for the IT industry in Taiwan? (3) Can we develop a conceptual framework for Taiwanese IT firms to evaluate and apply these determining factors and strategies for future success? (4) Facing the recent financial tsunami and economic downturn since early 2008, should these developed strategies based on past experiences be adapted to react to the severe environmental impact?

In this dissertation research, the author will first analyze past activities and historical performance data to discover the impact of Taiwanese IT firms engaging in investment in China on the innovation and performance of the firm itself and the economic growth of Taiwan as a whole. Then, through literature review and empirical studies including Delphi survey and case studies, the author will try to identify the determining factors for the success of technological innovation and performance improvement, and find out how the appropriate strategies of cross-strait competition and cooperation for Taiwanese IT firms may strengthen such determining factors and add competitiveness for further success. A conceptual framework with theoretical support and empirical verification to help identify determining factors and develop synergistic cross-strait competition and cooperation strategies for Taiwanese companies engaging in investment in China will then be proposed.

This dissertation will include a detailed description of the research background, purpose and the research questions, an overview of relevant literature and theoretical conducts, a theoretical framework and its underlying research questions or hypothesis, and a research methodology, data collection and analysis, discussion, results and conclusion. Implications and recommendations for future study will also be presented in the last section. Some definitions of terms and discussion of research assumptions, constraints, and limitations will be highlighted. Moreover, a brief knowledge timeline, a list of major events for the development of cross-strait economic and social relationships, and major milestones for the technological development in both Taiwan and China relevant to this research are also included as appendices.