Using DEMATEL method to explore the core competences and causal effect of the IC design service company: An empirical case study

Research highlights? The DEMATEL method is demonstrated as a useful approach in exploring the causal and effect interrelationship of the core competences of an industry or a firm. ? Seven core competences that a successful IC design service company should possess are identified. Five of them are defined as causal factors while the other two are in the effect group. ? The IP design capability is concluded as the most important core competences of an IC design service company. ? To enhance the five causal factors will strengthen the overall competitive advantage. The booming of Integrated Circuit (IC) design service has become a critical sub-industry to the evolution of semiconductor industry. In this paper, we took the case of a tier one IC design service company to explore the core competences of this emerging industry. Seven core competences are defined throughout the research. More specifically, this paper analyzes the in-depth of the interrelation among the core competences by utilizing the DEMATEL method. They are divided into causal and effect groups, enabling readers to gain a better understanding of the interactive relationship between them, as well as making suggestions for improvement to enhance their overall performance. The result has shown that the Intellectual Property (IP) design capability is the most important core competence. Enhancing five of the core competences in the causal group will improve the overall performance. Further, DEMATEL method is demonstrated as a useful approach in exploring the interrelationship.