The strategic fit of supply chain integration in the TFT‐LCD industry
Supply chain management
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
... ives 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.