The book examines the formation and transformation of the Chinese exportled
footwear industry from a political-economic perspective. In particular, it
explains why Taiwanese businessmen succeeded in developing the industry
while Nike, the largest shoe producer in the word, failed. Several theories are
explored, rooted in neoclassical economic, new institutional economics, new
institutional sociology, and new economic sociology, to explain why the
Taiwanese but not Nike succeeded in China. But these explanatory models
are all found wanting. Instead, the thesis demonstrates that a model of
markets as politics and fields, one that emphasizes the role of power, best
accounts for the origin, evolution, and transformation of the Chinese exportled
footwear industry. A stable status hierarchy, comprised of Taiwanese
footwear producers, local officials, and migrant laborers, created a business
environment that solved uncertainties embedded in the Chinese economic
transition. The Taiwanese producers and local officials were less powerful
than large firms and the state, despite being deeply involved in the Chinese
economic "miracle," but by developing alliances with local political officials,
Taiwanese business, with local political support, transformed China into the
leading footwear producer in the world. However, tensions rooted in the
Chinese economy, polity, and society are shown to make the future of the
country's domination of global production uncertain. The book is addressed
to scholars and students in Sociology, Politics, and Economics. It is also
directed towards managers who are interested in investing in China.
Susan Eckstein (Boston University) said: "There is no business like shoe
business, and Chih-Peng Cheng most informatively explains why. He
fascinatingly details how the shoe industry goes global and how and why the
Taiwanese dominate it, first in their own country but more recently in China.
Nike had much to learn from them."