A two-stage study of grey system theory and DEA in strategic alliance: An application in Vietnamese fertilizing industry

Abstract

Agriculture has been developed in Vietnam throughout the years, together with the fertilizing industry. In fact, among those fertilizing companies there is a need to form partnership. However, successful strategic alliances require special skills, considerations and efforts in order to assure the necessary cooperation needed to harness the respective potency of each partner. Grey Theory and DEA model were applied to calculate the effectiveness of enterprises in Vietnam fertilizer industry then offer an effective way to figure out the most suitable strategic partners. Seven companies in the fertilizer industry are selected to collect realistic data from financial reports of Vietnam issued stock market in four consecutive financial years (2012-2016). The Southern Fertilizers JSC was set to be the target decision making unit (DMU). Although this research is specifically applied to the fertilizer industry, the proposed method could also be applied to other manufacturing industries. (C) 2018 The Authors. Published by IASE.