2019 Volume 11 Issue 2 Pages 49-65
This study attempts to clarify the process of establishing inter-organizational relationship in Taiwan semiconductor industry. In particular, we focus on the business relationship between TSMC and Japanese equipment manufacturer J. This research uses in-depth interviews of qualitative research to collect data. The main results are shown as follows. First, the most important thing about the transaction process between TSMC and J is the technology itself rather than sales price and service. Second, the relationship between the two organizations has developed from the initial simple trading relationship to the later trust relationship through the demonstration of company J’s equipment in TSMC’s factory. Third, the most important factor is the “demonstration” which leads to the building of trust relationship between the two companies. Thus, based on the coordinated actions of the two companies, the high mutual technological capacity leads to a high competitive advantage.
