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Using Malmquist index to select the strategic partners in vertical integration: the case of Taiwan LED supply chain

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  • Chia- Nan Wang
  • Hong-Xuyen Thi Ho
  • Shih-Hsiung Luo
  • Yu-Shiuan Yang

Abstract

In recent years, green technology efficiency has been one of the most interesting issues when referring to energy saving. The light-emitting diode (LED) is one of the competitive industries on green technology in Taiwan. The objective of this article is to select the vertical strategic partners of the 22 LED companies through investigating performance of integration. The Malmquist productivity index (MPI) is used to evaluate the average efficiency change from 2011 to 2015. The empirical results show that the productivity change was influenced by both catch-up effects and frontier effects. For upstream companies, the MPI of Tekcore is superior to others because it maintained technical efficiency and technological change. For downstream companies, most of them are performed well in technical efficiency than technological change. This article helps LED manufacturers select the appropriate strategic partners to achieve competitive advantage.

Suggested Citation

  • Chia- Nan Wang & Hong-Xuyen Thi Ho & Shih-Hsiung Luo & Yu-Shiuan Yang, 2018. "Using Malmquist index to select the strategic partners in vertical integration: the case of Taiwan LED supply chain," Applied Economics Letters, Taylor & Francis Journals, vol. 25(19), pages 1336-1341, November.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:19:p:1336-1341
    DOI: 10.1080/13504851.2017.1420875
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