Taiwanese SMEs Firms
The number of Taiwan’s SMEs totals 1,236,000, with an export value of NT$ 1.63 trillion (~U S $49.3 billion), contributing 17% of Taiwan’s overall exports (MOEA, 2011). Taiwan’s SMEs have been the primary driver of the economic development of Taiwan over the past century (Tzeng, 2009).
SMEs account for more than 97% of all firms in Taiwan, and are noted for their performance in international markets (Chiao & Yang, 2011). Taiwanese industrial structure is “unique and dichotomous,” with most SMEs focusing on the international market while most large companies concentrate on the domestic market (Tzeng, 2009). Taiwan is moving towards a service sector economy where SMEs have active participation (Tzeng, 2009). Given the changes that are taking place in the business environment, there is a clear need for the Taiwan government to adjust and revise its SME guidance policy and development strategies in line with the new requirements of globalized logistics management and localization. Conceivably, national policy discussion on banking and finance would benefit institutions from an international perspective.The Taiwanese government is promoting its global logistic strategy for economic development which stresses supply chain integration by bridging information flows among overseas enterprises, domestic large firms, and local SMEs. The Ministry of Economic Affairs (MOEA), Taiwan is fostering “industry clusters” by encouraging SMEs engaged in similar industry to locate their operations near one other to facilitate information exchange (Tzeng, 2009). Driven in large part by Taiwan SMEs' aggressiveness to tap into overseas markets, banks operating there are targeting the SME sector in the near future. Such banks must develop international remittance services, more efficient corporate cash flow management, foreign currency transaction services, and international financial market information, to allow SMEs to monitor both domestic and offshore capital flows and to ensure normal profit stability for their businesses.
Ultimately, Taiwan has developed a unique context that possesses multifarious attributes such as high uncertainty avoidance, anxiety, insecurity, flexibility, a short-term focus and greater sensitivity, yet also a global reach (Ahlstrom, Chen, & Yeh, 2010). Though deeply ingrained, culture cannot be a standalone antecedent for the success of Taiwanese firms. Culture has influenced Taiwan's SME performance through organizational structure, formal institutions, and other variables (Ahlstrom et al., 2010; Chen, Weng, & Hsu, 2010). In practice, to meet the challenges of the highly competitive business environment, SMEs must aggressively adopt advanced information technology for survival (Chang, Hung, Yen, & Lee,
2010). For effective integration of the SME sector into e-banking systems, it is necessary for policy makers to recognize its unique characteristics.
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