A Study on the Relationship among Supplier Capability, Partnership and Competitive Advantage in Taiwan's Semiconductor Industry

This research is focused on Taiwanese semiconductor industries to explore the impacts of supplier capability and partnership on organizational competitive advantages, in the hope of providing organizations with the key factors to competitive advantages for them to manage competitive challenges and to continue organization’s vitality. This study is first referring to relevant literatures to identify the measurement indices of supplier capabilities, partnerships and competitive advantages, which are used to collect data through questionnaires. Then, the statistical analyses including factor analysis, Pearson’s correlation, and multiple regression analysis are employed to examine the interrelationships among these factors in deciding how supplier’s capability and partnership affect competitive advantages. According to the results, supplier’s capabilities and partnerships have significantly positive correlation; both supplier’s capabilities and partnerships have positively influence on competitive advantages. In view of the findings, the study concludes that semiconductor industries have to stress on the evaluation of their suppliers’ capabilities, precisely to say, to take account of suppliers’ overall capabilities and resources integration, particularly innovativeness and quality, to enhance partnerships, to build up core competence of supplier chains through technical cooperation and strategic alliance. And all the efforts can help organizations achieve higher competitive advantages and constant growth of operational performance.

[1]  Edwin R. Stafford.  Using co-operative strategies to make alliances work , 1994 .

[2]  Rodney L. Stump,et al.  The contingent effect of specific asset investments on joint action in manufacturer-supplier relationships: An empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust , 1999 .

[3]  R. Kanter.  Collaborative advantage: The art of alliances , 1994 .

[4]  Robert E. Spekman,et al.  Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques , 1994 .

[5]  L. Ellram.  A Managerial Guideline for the Development and Implementation of Purchasing Partnerships , 1991 .

[6]  Darryl D. Wilson,et al.  Supply management orientation and supplier/buyer performance , 2000 .

[7]  K. Möller,et al.  Business suppliers' value creation potential: A capability-based analysis☆ , 2003 .

[8]  John T. Gardner,et al.  Developing and Implementing Supply Chain Partnerships , 1996 .

[9]  Shahid Yusuf,et al.  Global Production Networking and Technological Change in East Asia , 2004 .

[10]  Richard J. Schonberger,et al.  Just-in-Time Purchasing: A Challenge for U.S. Industry , 1983 .

[11]  Neeraj Bharadwaj.  Investigating the decision criteria used in electronic components procurement , 2004 .

[12]  Harbir Singh,et al.  Complementarity, status similarity and social capital as drivers of alliance formation , 2000 .

[13]  Daniel R. Krause.  Supplier Development: Current Practices and Outcomes , 1997 .

[14]  Robert E. Spekman,et al.  An empirical investigation into supply chain management: a perspective on partnerships , 1998 .

[15]  Jordan D. Lewis.  Partnerships for Profit: Structuring and Managing Strategic Alliances , 1990 .

[16]  Damodar Y. Golhar,et al.  Customer and Supplier Linkages for Small JIT Manufacturing Firms , 1991 .

[17]  R. M. Monczka,et al.  Worldwide Sourcing: Assessment and Execution , 1992 .

[18]  武石 彰.  Bridging inter-and intra-firm boundaries : management of supplier involvement in automobile product development , 1998 .

[19]  C. Watts,et al.  Linking Purchasing to Corporate Competitive Strategy , 1992 .

[20]  Donald R. Lehmann,et al.  Decision Criteria Used in Buying Different Categories of Products , 1982 .

[21]  W. Edwards Deming,et al.  Out of the Crisis , 1982 .

[22]  Peter T. Ward,et al.  Research in the process and content of manufacturing strategy , 1990 .

[23]  Jinichiro Nakane,et al.  Benchmarking Global Manufacturing: Understanding International Suppliers, Customers, and Competitors , 1992 .

[24]  R. M. Monczka,et al.  Cooperative Buyer/Seller Relationships and a Firm's Competitive Posture , 1989 .

[25]  A. Petroni,et al.  Innovation as a determinant of suppliers’ roles and performances: an empirical study in the food machinery industry , 2002 .

[26]  L. Ellram.  The Supplier Selection Decision in Strategic Partnerships , 1990 .

[27]  Lawrence G. Friedman,et al.  Getting Partnering Right: How Market Leaders Are Creating Long-Term Competitive Advantage , 1995 .

[28]  Stephen J. Mills.  Partnerships for profit: Structuring and managing strategic alliances: Jordan D. Lewis, Free Press (1990), 336 pp., £22.50 , 1991 .

[29]  D. Macbeth,et al.  Partnership Sourcing: An Integrated Supply Chain Management Approach , 1994 .

[30]  Timothy J. Wilkinson,et al.  Strategic alliances: Choose your partners , 1995 .

[31]  Lisa Napolitano,et al.  Customer-Supplier Partnering: A Strategy Whose Time Has Come , 2013 .

[32]  Mark A. Vonderembse,et al.  The Impact of Supplier Selection Criteria and Supplier Involvement on Manufacturing Performance , 1999 .

[33]  J. Hershauer,et al.  TOTAL QUALITY MANAGEMENT IN THE SUPPLY CHAIN : WHAT IS ITS IMPACT ON PERFORMANCE? , 1997 .