Does Maintaining Resources, Diversification, and Internationalization Matter for Achieving High Firm Performance? A Sustainable Competitiveness Strategy for China Taipei Firms

Comments 1: Introduction: The first three paragraphs do not connect with the rest of the text. The introduction needs to be supported with bibliographic sources that refer to how firms' strategies enhance competitiveness and achieve better export capabilities.

Response 1: Thank you for pointing this out. We agree with this comment. Therefore, we have updated the manuscript with change. In the first paragraph, we construct with the explanation about current global business enviroment which be more challenges and competitive. We explain how important develop strategic capabilities to navigate volatile economic environments. The case of China Taipei presents a unique example, as its firms operate within an ex-port-oriented landscape. As a Newly Industrialized Country (NIC), China Taipei relies heavily on exports and maintains significant trade integration with China and other global markets. However, this dependency poses critical challenges, particularly in times of global economic disruptions and geopolitical tensions. China Taipei firms face a vul-nerable environment due to their high dependency on China, making them susceptible to economic shocks, trade tensions, and political uncertainties. Furthermore, sentiment policies and political influences add to the complexity of their business operations. Despite these challenges, many China Taipei firms have demonstrated resilience and an ability to sustain their competitiveness. This gap is critical given China Taipei's significant economic ties with China and its re-liance on exports, which make its firms particularly vulnerable to global disruptions. This study aims to address these business challenges understanding and expoloring how China Taipei firm’s strategy to enhance firm’s performance on making their sus-tainable competitiveness. (The updated exist in Line 41-77).

Comments 2: Literature review: It is better to merge 2.4 and 2.5

Response 2: Agree. We have merged this point this point to once. The sub-topics become “2.4            Internationalization, Product Diversification and Non-labor Intensive”. It exists in Line 209 - 285

Comments 3: Materials and Methods: Line 386-389: What percentage of the country's total do the 360 businesses represent? What sampling method was used to select the 360 businesses? Is the sample representative enough to draw reliable conclusions?

Response 3: Agree. We have, revised and explain more detail. In beginning, we explain a number of firm pupolation listed in TWSE (Taiwan Stock Exchange). we identified a population of 997 companies listed on the Taiwan Stock Exchange (TWSE). Then, we explain the method to justify our sample size (360 firms). We used purposive sampling and apply the criteria to explain the procedure of eliminating the population of 997 firms into 360 firms. The explanation detail is existed in Line 356 – 378.

Comments 4: Line 625-631 it is better to get moved to the discussions.

Response 4: Agree. We have moved to emphasize discussions part which can be found in Line 670 - 679.

 Comments 5: The weakest point in the conclusions is that there are not really conclusions, but a summary combined with a discussion. There are no limitations of the research. There should be an extension of the conclusions.

Response 5: Agree. We have revised totally adjusted the advice. Moreover, we revised the limitation of the research and adjust the future research direction. A detail explanation can be found in the Line 681 – 697.

Comments 6: the writing is understandable but there many instances of awkward writing that an English speaker/editor could easily correct.

Response 6: Agree. We have modified and do the best to improve our english writing. We involved the proofreader to check and improve our manuscript

Comments 1: some cited references are relatively dated and may not fully reflect the latest research trends and developments. It is recommended to incorporate more recent studies, particularly those exploring the impact of factors such as increased global economic uncertainty, accelerated digital transformation, and the application of new technologies on firm performance.

Response 1: Thank you for pointing this out. We agree with this comment. Therefore, we have changed and improved our cited references to reflect the latest research and trend development. We also expand our explanation to relate global economic uncertainty context (a detail explanation can be found in Line 41-46, and 57-77. Moreove, we cannot fully discuss about digital transformation, and the application of new technologies on firm performance because out would be change the main ide which focus on the geographical context (China domination and internationalization, existing in Line 27-31). However, the advice to add discussion about accelerated digital transformation, and the application of new technologies on firm performance are excellent. It can be our input for our next manuscript and develop current manuscript in the next.

Comments 2: The author should provide a more detailed description of the data processing procedures, including how missing values and outliers were handled, as well as the specific criteria for data cleaning and filtering, to ensure data quality. For variable measurement, further discussion on potential differences across industries is needed. Additionally, robustness checks, such as employing alternative measurement methods or conducting industry-specific analyses, should be considered to validate the reliability of the findings

Response 2: Agree. We have provided a detailed information of the data processing procedures, including how missing values and outliers were handled, as well as the specific criteria for data cleaning and filtering, to ensure data quality. We only do robustness checks and validate the study by applying strict criteria based on our purposive sampling method. The procedure can be found in Line 359-378.

For variable measurement purpose, we have detailed variable measurement and put the equation for each variable observed. A detailed measurement can be found in Line 385 – 407 and In Line 420 – 476.

Comments 3: the analysis of non-significant hypotheses lacks depth, with insufficient exploration of potential reasons behind these outcomes

Response 3: Agree. We have explored and put more explanation about non-significant hypotheses. A detailed explanation can be found in Line 656 – 679.

Comments 4: The discussion section analyzes the results but could benefit from greater depth. It primarily reiterates the findings without sufficient comparative analysis with related studies or deeper theoretical exploration.

Response 4: Agree. We have modified the explanation and expand more detail. We also provide the comparative analysis and discussion with previouse research finding which is found pro-cons finding with the previous research. Detailed explanation can be found in Line 633 – 679.

Comments 5: The underlying implications and potential impacts of the results are not fully explored, limiting the section's contribution to the broader academic discourse.  

Response 5: Agree. We have revised totally adjusted the advice. Moreover, we revised the limitation of the research and adjust the future research direction. A detail explanation can be found in the Line 681 – 697.