Strategic Alliance Decision-Making for the Auto Industry Base on an Integrate DEA and GM(1,1) Approach

Document Type : Research Paper

Authors

1 Department of Industrial Engineering and Management, National Kaohsiung University of Applied Sciences, Kaohsiung, Taiwan

2 Faculty of Economics - Social, Hanoi University of Business and Technology, Hanoi, Vietnam

Abstract

Strategic alliance promotes enterprise resources sharing and enhances the competitiveness of the marketplace. Therefore, finding a mutually beneficial partner to make a strategic alliance is an important issue for various industries. The aim of this paper is to propose a suitable method based on Grey theory and Data Envelopment Analysis (DEA). A method predicts future business and measure operation efficiency, by the use of critical input and output variables. From this, firms can find out their appropriate candidates. This research was implemented with realistic public data from four consecutive financial years (2009-2012) of twenty Auto Manufactures. The study tries to help target firm find the right alliance partners. The results show the most priori candidates in recent years. The study will be of interest for managers of Auto Manufacture in utilizing alliance strategy.

Keywords

Main Subjects


Brouthers K.D. and Bamossy G.J. (2006). Post-formation processes in eastern and western European joint ventures. Journal of Management Studies, Vol. 43, pp. 203-229.

Candace E.Y. and Thomas A.T. (2011). Strategic alliances with competing firms and shareholder value. Journal of Management and Marketing Research, Vol. 6, pp. 1-10.
Chan S.H., Kensinger J.W., Keown A.J. andMartin J.D. (1997). Do strategic alliances create value? Journal of Financial Economics, Vol. 46, pp. 199-221.
Charnes A., Cooper W.W. and Rhodes, E. (1978). Measuring the efficiency of decision making units. Europeans Journal of Operational Research, Vol. 2(6), pp. 429-444.
Cho B.S., Kang S.W. and Cha, S.M. (2006). Trends in telecommunication strategic alliance regulation. Technology Management for the Global Future, Vol.4, pp.1994-2004.
Cravens D.W., Shipp S.H. and Cravens K.S. (1993). Analysis of cooperative inter-organizational relationships, strategic alliance formation, and strategic alliance effectiveness. Journal of Strategic Marketing, Vol. 1(1), pp. 55-70.
Deng J.L. (1982). Control problems of Grey systems. Systems and Control Letters, Vol. 5, pp. 288-294.
Deng J.L. (1989). Introduction to Grey system theory. The Journal of Grey System, Vol. 1, pp. 124.
Golany B. and Roll Y. (1989). An application procedure for DEA. Omega, Vol. 17(3), pp. 237-250.
Haugh D., Mourougane A. and Chatal O. (2010). The Auto industry in and beyond the crisis,OECD Economics Department Working Papers, No. 745, OECD Publishing, Paris., DOI: http://dx.doi.org/10.1787/5kmmp8wg6cmq-en.
James D. B., Benjamin G.C. and Michael S.R. (2003). Mastering alliance strategy, John Wiley & Sons, Inc., United States of America, pp. 1-19.
Kauser S. and Shaw V. (2004). International strategic alliances: objectives, motives and success. Journal of Global Marketing, Vol. 17(2-3), pp. 7-43.
Lo F.Y., Chien C.F. and Lin, J.T. (2001). A DEA study to evaluate the relative efficiency and investigate the district reorganization of the Taiwan power company. IEEE Transactions on Power Systems, Vol. 16(1), pp. 170-178.
Mart n J.C. and Roman, C. (2001). An application of DEA to measure the efficiency of Spanish airports prior to privatization. Journal of Air Transport Management, Vol. 7(3), pp. 149-157.
Stevenson W.J. and Sum C.C. (2010). Operations management: an Asian perspective. McGrawHill Education (Asia).
Tone K. (2002). A slacks-based measure of super-efficiency in data envelopment analysis. European Journal of Operational Research, Vol. 143, pp. 32-41.
Tone K.A. (2001). Slacks-based measure of efficiency in data envelopment analysis. European Journal of Operational Research, Vol. 130, pp. 498-509.
Wang C.N., Li K.Z., Ho C.T., Yang K.L. and Wang, C.H. (2007). A model for candidate selection of strategic alliances: case on industry of department store. Second International Conference on Innovative Computing, Information and Control, Vol. 85-85.
Wang R.T., Ho C.T.B. and Oh K. (2010). Measuring production and marketing efficiency using grey relation analysis and data envelopment analysis. International Journal of Production Research, Vol. 48(1), pp. 183-199.
Yuan L.N. and Tian L.N. (2012). A new DEA model on science and technology resources of industrial enterprises. International Conference of Machine Learning and Cybernetics, Vol. 3, pp. 986-990.
Sources from websites
OICA, World ranking of manufacturers, available athttp://www.oica.net/production, 2012.
Top 10 Nissan markets 2012 (2013), available at http://www.nissan-global.com/en/

Nissan recalling over one million vehicles for airbag issue (2014/03/26), available at http://www.reuters.com/article/

Nisan annual report 2013, available at http://www.nissan-global.com/en/

Bloomberg Business Week, available at http://www.business-week.com/