[Special Contribution]
Taiwanese Culture Creative Industry Empirical Study
- Based on a Case Study of a Hundred-year-old Bakery in Taiwan -
Primary Author : YANG SHENG-CHING
1Hsiuping University of Science and Technology, Professor
Corresponding Author : Kim, Young Sam
Dong-Eui University, Dept. of Industrial Design, Adjunct Professor kysam25@hanmail.net
Contents 1. Introduction 2. Literature Review
2.1. Culture Creative Industries 2.2. Century Business
2.3. Taiwanese Century Business 3. Study Method
3.1. Research Object
3.2 Credibility of Research Analysis 4. Research Result
4.1. Management Strategies, Management Spirit and Problem solving
4.2 Harmony inside of a business 4.3 Enterprise Feedback
4.4 Sustainable Management, creating the next business century
5. Conclusion and Suggestions References
(Abstract)
As globalization goes around the world, Taiwanese industry advantages have been taken over by other countries. A competition crisis Taiwanis facing now is a lack of product characteristics. A cultural creative industry, combined with creativity, applied in the product development or daily lives, is the key factor to new business opportunities. On the other hand, entrepreneurs set their ultimate goal as "sustainable development". This study aims to analyze the reasons to a hundred-year-old bakery, which stands firmly in the fast-changing market with its "soft ability."Through an interview with the hundred-year-old bakery owner in Taipei, Taiwan, this study gives the reasons to its sustainable development. 1. A tendency to innovate in means of product packaging, — television series product placement practices.
2. Well-being of employees. 3. Contribution to social welfare activities and to the society. 4.
Positive attitudes toward market demands and fearless to change. This study concluded four assumptions for further studies, and last, it attempts to explore its academic contribution.
Keyword : Cultural Creative Industries, Hundred-year-Old Enterprise, Sustainable Development, Li Ting Xiang Bakery
1. Introduction
In 2002, the government began to promote Cultural and Creative Industries (CCI). In 2010, the government brought up the draft of
"cultural creative industries development strategies". However, the effects have not been seen in regards of its goals, dimensions and applied strategies. Based on the "empirical study of Taiwanese cultural creative industries", this study will clarify the importance of cultural creative industries to enterprise innovation and brought up some concrete suggestions in hopes of seeing cultural creative industries create Taiwan’s next "economic miracle". Japanese Kongo Gumi Co., Ltd. was set up in year 578 and has been in existence for 1434 years and it is the oldest enterprise in the world. According to the documentation from the Ministry of Economic Affairs in 2012, there are 1,310,791 enterprises in Taiwanin 2011. On the other hand, the Ministry of Economic Affairs Bureau of Foreign Trade and the author’s survey showed the number of the enterprises which age for more than a hundred years, or the so-called "century enterprise", is only 39. For enterprise to establish a sustainable development is a critical issue to an era of globalization.
After being listed on stock exchange, enterprises become fast-growing slaves"(Bo Burlingham 2005 in ， ） Small Giants" book analyzes that enterprises are being urged to grow fast but ignore the long-term interests.
Pei Yu, Sun. and Han Yi, Jhang.(2006), century enterprises share the same trait:
these small and medium sized enterprises are often not listed in stock. These enterprises insiston not becoming the mainstream, so they do not expand the scale and the equity is owned by a handful of people who shares similar ideas and beliefs. While young generation is ready to succeed the old one,
what a century enterprise cares the most is whether the prospect and value of itself can be preserved and passed down. The time century enterprises were established is a lot different from the modern technology and globalization today. Business strategies can be modified through time, while the attitude and characteristics of an enterprise is irreplaceable. All in all, this gives modern enterprises a reflection on their pursuit of high-speed growth.
To stir the motivation among Taiwanese enterprises, it is important to further study those century enterprises on how they pass on the values to the next generation. It would seem that their belief towards management is no more than the four kinds of attitudes:
diligence, thrift, sincerity, and honesty, which features quality and perseverance. The everlasting management relies on the preservation of traditional values and culture.
Without questions, the development of century enterprises lies not only on the energy and perseverance, but cultural creativity, innovation, the government’s attention and emphasis. The connection between a successor’s career development and a century enterprise is yet to be discussed.
The goal of the study is to analyze how culture innovation influences the sustainable management of century enterprises. The focuses are: what attitudes and strategies do enterprises take against business depression?
Has great disaster or difficulty ever occurred to the business? What is the key to success?
What is the development prospect? How to create the next business century? What differences does culture innovation make to the century enterprise? In-depth interviews with Li Ting Xiang Bakery, analysis on the interviews, clarification of hidden matters and discussion on the results in this study are hoped to bring light to the struggling Taiwanese enterprises and to help the
government enact better "Culture Innovation Business" strategies.
2. Literature Review
2.1. Culture Creative Industries
David Hesmondhalgh(2006) suggests that culture business produces texts that are open to interpretation. Texts are carried out in forms of lyrics, description or performances are set to stimulate mind effects with its rich symbolism and to accomplish the goal of communication. Through cultural design, an example of the bakery products discussed in this study not only expresses the symbolism, but carries the purpose for better sales.
According to the definition, Hesmndhalgh proposed the term "Core Cultural Business"which includes advertisement and marketing, broadcast and television industries, film industry, Internet industry, music industry, printing and electronic publishing industries, video and computer games industries.
Executive Institution included "Cultural Design Business Development Plan" in "National Development Plan" in combination with "New Community Establishment" and "Water and Green buildings"in hopes of speeding up Taiwan to green silicon island and becoming a leader of cultural creativity business in Chinese community. Cultural Creative Industry is defined as "an industry started with culture or creativity accumulation, through the use of intellectual property, being qualified to create wealth and employment opportunities and is able to promote the quality of the overall environment. The government not only adopts the definition and characteristics of cultural creative industry, but also the development potential in various aspects, which are 1, numbers of employment or participation; 2, output value and associated interest; 3, good potential, 4, originality and innovation; 5, high added value. Based on the definitions
descripted above, the authority has defined the cultural creative industry of Taiwan and has chosen the associated units to promote the industry.
2.2. Century Business
Burlingham,Bo.(2005) suggests that those century enterprises, which arestrong in foundations, have chosen something more important above growing profits or becoming exchange listed companies. Huan Yu, Chen.(2009)reports that the five key dimensions to century enterprises are
"product", "management", "organization",
"environment" and "history". Yu Jhen, Jhang.
(2009)suggested three methods from the design point of view: 1. To promote the level of sensibility and broaden the brand spirit to help define the core value of the brand. 2. To keep the "real culture" by turning sighteffects into colloquialism in order to build visual characteristics. 3. Characterize a brand with its story and trigger consumers to interpret its meaning. These methods mentioned above are considered to help promote the creativity development.
Yu Jhen, Jhang. (2010) reports: 1. In comparison with professional factors such as educational level, successors who identify oneself to family values and have a sense of mission are considered more influential when it comes to the motivation of taking over the duty. 2. The choice of successors are made on the basis of one’s ability and personal characteristics, and the parents to successors are more dominant when it comes to leading a century business. 3. Successors are influenced by Chinese family concepts which include the roles, duties, and obligation of each generation of a family. Successors, under the pressure and sense of responsibility, become contradicted by both positive and negative motivations. Succession is made under the transition of the inheritedknowledge owned by
the old generation, like father to son or master to apprentice. 5. The core values of a century business contain the administrative capacity of implementation of the successor, following the traditional values and norms, inexpensive and excellent produce and customer service, and an interaction with unity and harmony between generations.
Ru, Huang(2004) discovers that, although the compulsory education postpones the time to make decisions and successors can become hesitated; meeting the needs of the family business is still the priority of those successors. In succession, values transferred by a father can be quite influential to the career development of the first son; however, an insufficient training during the growth period can leave the successor inadequate. In the issue of gender, skills are taught to sons instead of daughters; daughter in laws may have higher position in the business than daughters. Males are the proud of the family while females are to be proud of being part of the family; overall, century business relies on the maintenance of family ethics, while successors attribute the establishment to the society.
Based on the descriptions above, studies have pointed out that century business has five key factors to success; define the core values of a brand and the issue of successors influences the length of an enterprise.
On the other hand, Yi Cheng,Huang.(2004) gives six suggestions to future practices according to theories of marketing channels and S.W.O.T. analysis. 1. Careful deployment of resources is needed in the beginning of transformation. Measure and examine the resources, develop industry-related business, integrate vertically, develop horizontal diversification and international market in hopes of a steadygrowth. 2. Make the best use out of the resources by adjusting development strategies as environment
changes. 3. Hold a broad view with prudent attitudes toward international market in order to evaluate investment stakes. 4. Being innovative in the matterof development strategy in order to survive. 5. Consider industry culture background under transformation and combination with other industries. 6. Have a control of development mode and progress, if not, one can easily lost itself.
Min-Hua,Wu.(2010) mentioned the changes of century enterprises can classified as the internal and the external factors.
External factor derives from the south part of Taiwan when bakery industry began; internal factor focuses on the industry culture case study and its influences. To compare and analyze sex century bakery shops, it is clear that the changing of bakery is directly affected by the economy of Taiwan. With a hundred years gone by, the changes are influenced by the development in the south of Taiwanand the total environment impact. As for the internal factor, a clear business culture has a positive effect on century businesses. To compare and analyze, the author found that century business progresses through time and adjust its footsteps; the reasons to the success are
"positioning", "brand management" and
"continual research and innovation". Establish well business culture for an easier brand recognition and longer survival. Hold an attitude of "the crown goes to those who are wise and capable but the son" "Make the right person do the right job" and sound management systems together are the reasons to a long survival.
Although previous studies pointed out the key factors to century business, the matter of successors and business culture influences;
management strategies of century business are yet to be discovered and do not provide enough resources to understand the matter. As a result, this study will analyze the long-term
management strategy and study the real effects derived from the influences.
[Figure 1] Taiwanese Century Enterprises
2.3. Taiwanese Century Business
There is no specific definition on "century business." This study will define "the business that has been established for more than a hundred years" (including a hundred years).
According a study from the author based on the Bureau of Foreign Trade of the Ministry of Economic Affairs in 2007, 39 century businesses are listed as Figure 1.
3. Study Method
This study is based on the literature review and in-depth interviews in the means of qualitative study. Interviewees are the enterprises, shops, and stores that have been created for a hundred years (before the year of 1912). Those century enterprises who meet the requirement are listed above and shown in table 1. Interviewees were chosen through questionnaires based on the willingness of taking interviews. Phone calls were made to make sure the time of visit before the face-to-face interviews.
This study interviewed the representatives of enterprises through open interviews. They are given previous literature review questions (see appendix) andquestions were made according to the answers interviews gave. The whole interview was done in 2011, each interview takes 1.5 hours. Field notes and sound recordings were typed into word-for-word transcript under the consent of interviewees; the document is served as the analysis foundation
3.1. Research Object
Based on the research method described and interviewees selected above, a bakery shop, named Li Ting Xiang Bakery, is chosen to be our interviewee. The bakery was also chosen to shoot the soap opera "Family Harmony"by Sanlih Television Corporation. Word for word viewing, coding, naming, induction and
correction were made according to the information gained from the interview. The information is treated with care and supported by the bakery. A brief introduction on the interviewee is shown on table 2.
[Figure 2] Research Object
3.2. Credibility of Research Analysis
This study is done based on the four principles of qualitative research: credibility, development, reliability and certainty (Lincoln
& Guba, 1985). Doing analysis upon the information collected and do further studies according to interviews. Through qualitative research, it is hoped to gain the best fidelity to confirm the interviewee. This study not only takes a questionnaire research which lasts for ten months, but also collects information gained from field observation and secondary data collection. Reports on the shops from television stations were also taken into data collecting, for example, the Unique television station "Unique Discovery" (video introduction), "Grass Champion" (celebrity recommendation). It is found that field
observation, secondary data collection and in-depth interviews point the same direction, and confirms the requirement of qualitative research: credibility, development, reliability and certainty. On the other hand, the designs of research and result analysis were carried out through discussion with research teammates to ensure the results are reflecting the reality.
4. Research Result
Research result and study assumptions were made based on the outline of interviews, in-depth interview, field observation and secondary data collection.
4.1 Management Strategies, Management Spirit and Problem solving
To ensure sustainable management, the management strategies and spirit that Li Ting Xiang Bakery upholds are different fromthe other bakeries in its corporation with mass media and cross-industries. As a result, products are well known to people.
Furthermore, new flavors are added to cater to the preferences of young people.
"Though media, culture bureau, cross-industry alliance and department store channels, products are widely-introduced to consumers "…
"New flavors are constantly added as time changes in order to meet the preference of young people " …
Crises necessarily come as an enterprise develops. Li Ting Xiang Bakery faces its crises when the mode of hand-made cakes is challenged by the mass production of machines, the economic downturn decreases the purchase power among consumers, and the off-season. To solve the problems, the bakery adopts strategies such as deformation of human-resource work, customized production, technology OEM (Original Equipment
Manufacturer) and the attitude of being positive to the proposal of consumers instead of escaping. Taking customer advices and negative feedback into consideration to self-criticize and innovate better products is how the bakery fights against off-season.
"Wedding cakes increase the production of customized cakes, keeping the tradition and innovation to create chances in off-seasons, maintaining the skills of making cakes.When other bakeries are unable to afford another baker or under the shortage of professional techniques, we helped other bakeries make cakes "…
"To lower prime costs would upset other bakeries, which claim that doing so would undermine the market and make everyone else’s living difficult, are trying to avoid vicious competition cycle.
Based on the description above, this study will make assumptions on the strategy century business holds is innovation, not only in the attitudes towards environment changes,but in the taste of flavors and the working modes.
4.2 Harmony inside of a business
Excellent enterprises share similar traits:
good welfares, nice working environment, paying attention to the harmony of an enterprise, and put emphasis on personnel training. The Japanese god of business, Matsushita, said that "Personnel are accomplished before products are accomplished."Regardless of the status of enterpriser or businessman, teamwork and personnel assistance are necessary to accomplish something. Treat employees nicely so that they will treat customers the same way. Li Ting Xiang Bakery treats employees like family, inspires their responsibility and teachesthem everything they deserve to know.
Make employees feel like they are at home, trying best to maintain the harmony and growth of a "family".
"Employees dine together like family for better understanding, trust and communicatio n "…
"Train employees to be responsible, being general and patient when it comes to training or assistance."
Based on harmony and teamwork, this study assumes that enterprises should learn to treat employees nicely like a big family before becoming a century business.
4.3 Enterprise Feedback
Master of management, Peter Ferdinand Drucker in his book "Post-Capitalist Society", mentioned that the future development orientation has two main points. The first point is welfare on the society, also known as charity aid; another one is improvement of a community and the people, which stimulates the development on fast track. An inevitable trend towards modern management is enterprise feedback. Any enterprise rides the trend gets feedback from consumers and society. Li Ting Xian Bakery often sponsors activities held by national concert hall, house of women and children, homes for the elderly or orphanages. The bakery pays great attention and effort to non-profit services and helping the society.
"Sponsor activities held by national concert hall, houses of women and children, homes to the orphanages, homes to the elderly " …
According to the social issues discussion above, this study assumes that enterprises should learn to reward the society by doing non-profit services before becoming a century business.
4.4 Sustainable Management, creating the next business century
To go for long-term management, it is not enough for enterprises to focus on the market;
it has to be supported by a good social environment. During an interview, Li Ting
Xiang Bakery adopts strategies such as "brand rejuvenation"," active on shop expansion",
"offer multi-cultural products" in order to meet the demands of the market. Take
"red-turtle cakes"(peace, auspiciousness, long life) for example, not only as offerings to the gods, they can also be given as gifts.
"Brand rejuvenation, shop expansion, multi-culture products, innovate new products to develop the market "…
Based on the issue discussed above, an enterprise should be brave to make changes and holds positive and active attitudes to create the next business century.
This study summarizes some of the research assumptions as figure 3.
[Figure 3]. research assumption collection
5. Conclusion and Suggestions
This is an empirical study on the influences cultural creative industries do to the management of century enterprises. It is indicated that the reasons to the century businesses are: 1. A tendency to innovate under the changing environment, in means of packaging and product placement in mass media. 2. Treat employees nicely. 3. Spend effort and time on social non-profit activities as an rewardto the society. 4. Holding positive and active attitudes towards market demands.
It is found out that the case enterprises put a lot of attention on the harmony of the working environment. Comparing to some enterprises’unpaid leave and eliminate the
weak personnel, it is no difficult to understand the reasons why some enterprises survive for a long time.
On the other hand, in comparison with the previous study results on century enterprises, case enterprises show that successors are not necessarily the son of chairman. They cultivate excellent personnel through training and teach everyone one has to know without anything untold. Everyone is encouraged to take the place of the leader as long as one is being hard-working.
All in all, strategies on management, problem-solving and successor training are not the same. The study pointed out that century businesses put culture creative elements daring to make changes, into their — packaging, marketing, and try to balance themselves between the tradition and innovation.
It is learned that the challenge century business face lies in the risk of innovation, personnel training, society feedback and the attitudes. This study tries to give advices to the enterprises of Taiwan. First, get used to changes of environment. Changes cause risks;
however, refuse to change is also risky because one can turn into history without changes. Second, treat employees nicely to cultivate excellent personnel. Shaolin Temple was established in 495 A.D. and has been passed down for 1517 years because of the previous excellent successors. The key to sustainable management is people. Third, spend time and effort on non-profit services to reward the society. According to the author’s observation on some of the successful enterprises in Taiwan, part of the business profit is turned into non-profit services, not for tax savings, but to do good and accumulate merits. Last, be brave to make changes through changing of the market, even
under difficult timing such as "SARS" and economic recession.
Suggestions given above can increase the possibilities of better development without a great deal of cost. As globalization across the world, century enterprises are facing more competition and challenges. Innovation on product design, packaging and market strategies should be applied to attract potential customers.
The contribution of this study is listed as two main points below. First, it develops the field cultural creative industries and century business strategies. Second, previous studies focus mainly on the successful elements and the culture of successors and enterprises; this study, however, this study tries to discuss the development of an enterprise through the perspective of culture creativity. Last, it is found that the common traits of century businesses are constantly putting effort on non-profit services and reward the community. The four assumptions are hoped to establish the basis of future empirical study and accumulate relative studies on Taiwanese cultural creative industry and century business.
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Appendix
Interview Questions:
1. What are your management strategies and beliefs?
2. What is your attitude towards the industrial recession and what are your
countermeasures?
3. What problems have you encountered so far?
4. What is the reason to establish the enterprise?
5. Have you encountered any catastrophe or difficulty during the development and what was the key to success?
6. What is the core value of your enterprise?
7. How do you promote teamwork and keep harmony in your enterprise?
8. How do you discover and train personnel and receive the effects from t raining. Are there any successor training strategies?
9. How do you reward the society?
10. Is word-of- mouth marketing important to your enterprise?
11. How do you take care of those unfriendly custo mers?
12. How do you manage your steps to globalization and diversification?
13. What’s important to you while interviewing
new employees?
14. How do you think about overseas development?
15. Do you adopt advertising marketing or media marketing, which one is more often used and why?
16. What are your futu re development directions and the relevant issues?
e-mail: katsu7@mail.hust.edu.t w Received May 20, 2013 Revised June 14, 2013 Accepted June 27, 2013
Peer reviewed by 3 people anonymous.
