A multi-criterion analysis of cross-strait co-opetitive strategy in the crystalline silicon solar cell industry

Abstract

The research adopts multi-criterion analysis to face cross-strait cooperative and competitive (co-opetitive) strategies problem in the crystalline silicon solar cell industry between Taiwan and China. The analysis framework is based on the national competitiveness. The Analytical Hierarchy Process (AHP) approach and TOPSIS analysis are applied to analyze firm-level data, gathered from the solar cell companies across the Taiwan Strait. For the Taiwanese firms, their relative national competitiveness lies in technology development, domestic market, international competition in related industries, and subsidy policy. For the Chinese firms, domestic market, procurement conditions, customization, intellectual resources, risk capital, and human quality are found to be their competitive advantages. Both China and Taiwan have entered into the emerging solar cell industry, with an aim to climb beyond the ladder of catch up. The results have shown that Taiwan and China can explore the possibility of forging strategic alliances by exploiting national competitiveness on the demand side. Above all, the paper has managed to spotlight demand conditions as the crucial factors for China and Taiwan to enhance their international competitiveness in the emerging solar cell industry. © 2014 Hsiao-Chi Chen and Chia-Han Yang.