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This thesis is based on the data of books "The Largest Corporations in Taiwan" from 1986 to 1995 which are published by China Credit Information Services, Ltd. We chose top 20 firms every year from the computer & peripheral manufacturing industry, classfied the firms and collected the data of PC (personal computer) industry and firms which we are interested in. We defined the developing periods of PC industry in Taiwan and the industry paradigm in different developing periods. We also discussed the processes and the ways that the paradigm shifted. According to the information mentioned above and the developing and adaptation strategies of the chosen firms, we found that, 1. In PC (personal computer) industry, the paradigm shift is not always elicited by those top firms. It is possible that those large-scale firms follow those small firms that take some innovative actions. 2. During the period of paradigm shift, the new paradigm is under construction and the old paradigm is challenged; therefore, the industry is in an unstable condition. 3. In PC (personal computer) industry, if the innovation is diffused, the value of innovation decreases. That some pioneers devoted themselves to innovating led to paradigm shift and new dominant design. 4. In PC and peripheral industry, the firms of different product combinations have different perception about the KSFs (key success factors) and make different adaptations to the changes of the environment. 5. Before the paradigm shift, the firms which have accumulated different kinds of resources are apt to make different adaptations to the changes of the environment. 6. After the paradigm silift, most of the firms wilich chose reorientation or strategic renewal as an adaptation behavior grew in a higher velocity. 7. After the paradigm shift, most of the firms which chose adjustment as an adaptation behavior exited or forced to exited from the market.
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