Abstract

This study employs the perspective of global value chain (GVC) to address the workforce development (WFD) strategies conducted by Taiwanese OEMs in China for supporting their GVC upgrading. According to the case-based empirical analysis, five major characteristics of their WFD strategies are identified: 1) Consideration of the imbalance between skills supply and demand for GVC upgrading in China; 2) Inclusion of training industry-specific skills as per international standards, 3) Emphasis on developing “soft skills”; 4) Specific training for key bottleneck positions required by GVC upgrading; 5) Establishment of innovative corporate career development initiatives. This paper contributes to the literature by promoting better understanding of the WFD strategies by Taiwanese OEMs in China as well as examining the critical role of these strategies in facilitating GVC upgrading. Further, since a variety of enterprises interviews were conducted, it answers to a recent call for using first-hand information to analyze relevant issues, providing constructive implications for other Taiwanese OEMs to overcome the critical skilled labor shortage that may hinder their GVC upgrading.

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