Purpose – The purpose of this paper is to identify what kind of supply chain integration strategies can support TFT-LCD manufacturers seeking to break through the cost constraints and complex co-operation relationships between manufacturers, suppliers and set plants/distributors, and further satisfy the market requirements in terms of cost, quality, delivery, and flexibility.
Design/methodology/approach – This paper encompasses in-depth interviews with 20 TFT-LCD industry executives in three of the largest Taiwan TFT-LCD manufacturing firms.
Finding – Several different supply chain integration strategies have been identified for operational-level improvement of TFT-LCD manufacturer, including direct or indirect investment in suppliers; “made in-house” and “made by resident suppliers”
arrangements, “quasi-cluster” formation, and new module assembly line set-up at set plant.
Research limitations/implications – This study involves only three multi-national corporation of Taiwanese origin..
Practical implications – Based on the analysis of the TFT-LCD supply chain structure, the strategic fit of supply chain integration leads to the improvement of TFT-LCD manufacturers’ capability to satisfy customer requirements and then attain competitive
advantage. Their experience provides guidance for other hi-tech industries..
Originality/value – This paper provides insights into the strategic formulation of supply chain integration in the real world of the TFT-LCD industry and identifies 3 directions for further empirical research.
Relation:
Supply Chain Management-An International Journal 13(5) : 33P-342
