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E3 Journal of Business Management and Economics

E3 Journal of Business Management and Economics Vol. 3 (1) pp. 025-043, January 2012; © E3 Journals; ISSN 2141-7482

Is it time to withdraw from china?

Ming-Yuan Hsieh *
Department of International Business, No. 140, Min-Shen Road, Taichung City, 40306, National Taichung University of Education, Taiwan (R.O.C.); Tel: +886-975-118-922
*Corresponding Author E-mail:
Accepted 13 October 2011


This research cross-employs the Social Cognitive Theory (SCT) and three major labor theories comprised of Maslow’s theory, Alderfer’s theory and Herzberg’s theory with Multiple Criteria Decision Making (MCDM) consisting of Factor Analysis (FA), Analytical Network Process (“ANP”), Fuzzy Analytical Network Process (FANP) and Grey Relation Analysis (GRA) to evaluate the four types of innovative investment strategies in China after the Domino Effect of the China’s Labor Revolution. The most contributed conclusion is that the “change of original business at the raising compensation policy” (CBRCP) is the best choice for Taiwanese manufacturers operating in China because it is the highest scores of three assessed measurements in the CBRCP. This conclusion further indicates that manufacturing enterprises have little leverage, in the interim, but to increase employment compensation and benefits to satisfy the demands from the ongoing Chinese labor revolution even though it brings about an incremental expenditure in their manufacturing costs. Therefore, the next step beyond this research is to collect additional empirical macroeconomic data to develop a more comprehensive evaluation model that takes into consideration a more in-depth vertical measurement and horizontal assessment methodologies for developing added comprehensive and effective managerial strategies for surviving in this momentous, dynamically-changing and lower-profit Chinese manufacturing market.

Keywords: China labor revolution; Maslow theory; Alderfer theory and Herzberg theory; Multiple criteria decision making

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