Using Data Envelopment Analysis to Measure the Performance of Vertical Integration: The Case of Taiwan LED Supply Chain

• Main Authors: Yu-Shiuan Yang, 楊宇軒
• Other Authors: Chia-Nan Wang
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/77974934297817948112

碩士 === 國立高雄應用科技大學 === 工業工程與管理系碩士班 === 101 === The light-emitting diode (LED) industry is one of Taiwan's prominent industries. As the government engaged in the LED industry actively, LED supply chain in Taiwan has grown stronger and stronger. With the intense competition of the LED industry, Taiwan LED supply chain has transformed into vertical integration to improve their advantages. This study was designed to measure the operating performance of the LED industry, and to understand the company's productivity status of the individual LED by analyzing the operating performance of the LED industry. This study also examined the performance of LED vertical integration from the integrated productivity index, and the result provided information about the performance of vertical integration. In order to assess the operating performance effectively, this study applied Malmquist productivity index (MPI) to measure the performance of decision-making unit (DMU). The object of this study is Taiwan LED companies, including nine upstream (wafer/chip) companies and thirteen downstream (packaging) companies. Research data was gathered from financial report of Taiwan Market Observation Post System (M.O.P.S). The results indicated not only efficiency of production but also technical innovation affected the production performance. Furthermore, vertical integration is not a panacea, not all manufacturers have benefited through vertical integration. However, the result reported a better strategic to reverse both the operating and weaknesses. In conclusion, this study analyzed the operating performance of Taiwan's LED supply chain by productivity index. Taiwan LED companies examined factors impacting the productivity and choose the most appropriate strategic partners through the performance of vertical integration.