Abstract
Discussion of deglobalization in recent years appears to be focused on decoupling the People’s Republic of China (PRC) from the US-led global value chains (GVCs). While country policies co-evolve with one another in decoupling, firm strategic responses co-evolve with government policies. In this study, we explore key co-evolutionary conditions of reciprocally coupled ecosystems, diversity and selective stress in the context of the global semiconductor industry. We apply co-evolutionary constructs of bidirectional causality, qualitatively new system, and niche specialization to make sense of adaptive responses of third-party manufacturers (Taiwanese foundry businesses) in the US-PRC decoupling. Our study posits that a third-party manufacturer can survive, and even enhance their strategic and competitive advantages, despite political disruptions in international markets. Third-party manufacturers can engage in symbolic decentralization and balancing strategies with regard to their manufacturing locations in their co-evolutions with the policy changes during the US-PRC decoupling.
International Business Review (ABDC A-ranked journal)
2023, Forthcoming.