The strategic fit of supply chain integration in the TFT‐LCD industry

  • Sha D
  • Chen P
  • Chen Y
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Abstract

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 - The paper encompasses in-depth interviews
with 20 TFT-LCD industry executives in three of the largest Taiwan
TFT-LCD manufacturing firms.
Findings - Several different supply chain integration strategies have
been identified for operational-level improvement of TFT-LCD
manufacturing, 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
multinational corporations 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 - The paper provides insights into the strategic
formulation of supply chain integration in the real world of the TFT-LCD
industry and identifies directions for further empirical research.

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Authors

  • D.Y. Sha

  • P.K. Chen

  • Yung‐Hsin Chen

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