The achievements of Taiwan's machine tool industry have now received attention internationally. This research uses networking organization theory to analyze the basis of it's competitive advantages. This investigation focuses on the production of the Bride Port milling machine, which is considered representation of the machine tool industry. We do case studies of six firms and their suppliers, which are representative of the industry, by analyzing the characteristics and fundmental conditions of the network of the machine tool industry's division of labor, and attempt to find the factors allowing low cost and short delivery time. This research has discovered that the networking of division of labor for the Bridge Port milling machine has added value in many respects. First is the use of common components & Parts and the advantage of the product diversification; the second respect is in economies of scale, the use of outside workers to work in central factories, specia suppliers, and a compatible material flow network; and last of all, in the use of standard molds, the short distance between suppliers and factories, and the consequent expediency of the system's data interchange and the members' long term relationship. These findings are very meaningful to Taiwan's industrial development. They can help Taiwan's machine tool industry maintain industrial ecology and develop a center-supplier system. They also assist the industry in advancing to a higher level and in transplanting overseas.