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Automobile Industry Strategic Alliance Partner Selection: The Application of a Hybrid DEA and Grey Theory Model

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  • Chia-Nan Wang

    (Department of Industrial Engineering and Management, National Kaohsiung University of Applied Sciences, No. 415 Chien Kung Road, Sanmin District, Kaohsiung City 80778, Taiwan)

  • Xuan-Tho Nguyen

    (Department of Industrial Engineering and Management, National Kaohsiung University of Applied Sciences, No. 415 Chien Kung Road, Sanmin District, Kaohsiung City 80778, Taiwan)

  • Yen-Hui Wang

    (Department of Information Management, Chihlee University of Technology, New Taipei City 22050, Taiwan)

Abstract

Finding the right strategic alliance partner is a critical success factor for many enterprises. Therefore, the purpose of this study is to propose an effective approach based on grey theory and data envelopment analysis (DEA) for selecting better partners for alliance. This study used grey forecasting to predict future business performances and used DEA for the partner selection of alliances. This research was implemented with realistic public data in four consecutive financial years (2009–2012) of the world’s 20 biggest automobile enterprises. Nissan Motor Co., Ltd was set to be the target decision making unit (DMU). The empirical results showed that, among 19 candidate DMUs, Renault (DMU10) and Daimler (DMU11) were the two feasible beneficial alliance partners for Nissan. Although this research is specifically applied to the automobile industry, the proposed method could also be applied to other manufacturing industries.

Suggested Citation

  • Chia-Nan Wang & Xuan-Tho Nguyen & Yen-Hui Wang, 2016. "Automobile Industry Strategic Alliance Partner Selection: The Application of a Hybrid DEA and Grey Theory Model," Sustainability, MDPI, vol. 8(2), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:2:p:173-:d:63949
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    References listed on IDEAS

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    Cited by:

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    3. Qian Li & Yuanfei Kang & Lingling Tan & Bo Chen, 2020. "Modeling Formation and Operation of Collaborative Green Innovation between Manufacturer and Supplier: A Game Theory Approach," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    4. Chia-Nan Wang & Anh Luyen Le & Chu-Chieh Hou, 2019. "Applying Undesirable Output Model to Security Evaluation of Taiwan," Mathematics, MDPI, vol. 7(11), pages 1-15, October.
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    6. Illi Kim & Changhee Kim, 2018. "Supply Chain Efficiency Measurement to Maintain Sustainable Performance in the Automobile Industry," Sustainability, MDPI, vol. 10(8), pages 1-16, August.
    7. Chia-Nan Wang & Minh Nhat Nguyen & Anh Luyen Le & Hector Tibo, 2020. "A DEA Resampling Past-Present-Future Comparative Analysis of the Food and Beverage Industry: The Case Study on Thailand vs. Vietnam," Mathematics, MDPI, vol. 8(7), pages 1-24, July.
    8. Nguyen-Nhu-Y Ho & Phuong Mai Nguyen & Thi-Minh-Ngoc Luu & Thi-Thuy-Anh Tran, 2022. "Selecting Partners in Strategic Alliances: An Application of the SBM DEA Model in the Vietnamese Logistics Industry," Logistics, MDPI, vol. 6(3), pages 1-15, September.
    9. Wang, Chia-Nan & Nguyen, Xuan-Tho & Le, Thi-Dao & Hsueh, Ming-Hsien, 2018. "A partner selection approach for strategic alliance in the global aerospace and defense industry," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 190-204.
    10. Chia-Nan Wang & Hoang-Phu Nguyen & Cheng-Wen Chang, 2021. "Environmental Efficiency Evaluation in the Top Asian Economies: An Application of DEA," Mathematics, MDPI, vol. 9(8), pages 1-19, April.
    11. Han-Khanh Nguyen, 2020. "Combining DEA and ARIMA Models for Partner Selection in the Supply Chain of Vietnam’s Construction Industry," Mathematics, MDPI, vol. 8(6), pages 1-20, May.
    12. Chia-Nan Wang & Han-Sung Lin & Hsien-Pin Hsu & Van-Tinh Le & Tsung-Fu Lin, 2016. "Applying Data Envelopment Analysis and Grey Model for the Productivity Evaluation of Vietnamese Agroforestry Industry," Sustainability, MDPI, vol. 8(11), pages 1-15, November.
    13. Chia-Nan Wang & Ying-Fang Huang & Thi-Nham Le & Thanh-Tuan Ta, 2016. "An Innovative Approach to Enhancing the Sustainable Development of Japanese Automobile Suppliers," Sustainability, MDPI, vol. 8(5), pages 1-19, April.
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