Summary
This research investigates the efficiency of different ways in which companies can join and integrate with each other in the telecommunications industry in Taiwan, using Data Envelopment Analysis (DEA). We compared four different forms of joining and integration between companies in the industry in a sample consisting of 12 wire companies and 10 wireless companies in the industry, each of which was quoted on the Taiwan stock exchange. We compared the efficiencies of: the different wire companies joining together, the different wireless companies joining together, and of both of these forms of joining before the integration of all companies in the indus and after such integration. On the basis of the 'sensitivity results' from the DEA, best or most efficient form was for all the wire companies to join together and for with all the wireless companies to join together before integration. The implications of the findings for optimum operation of the industry are discussed.
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Extract
Evaluating the Efficiency of Business Integrative Strategies Among Companies in the Telecommunications Network Industry Using Data Envelopment Analysis
1. Introduction
Over the past few years, Taiwan's telecommunication network industry has reached maturity. At the same time, the competitive advantage of being the newest competition with the lowest production cost has gradually disappeared. As a result, Taiwan's telecommunication network manufacturing companies are faced with a major overhaul if they wish to maintain their competitive advantage. Business integration, or the joining together of different companies in the industry in one form or another, seems to be the best way for me industry to maintain whatever competitive edge it may currently enjoy in the market ( Liang and Ling, 2007, Liang and Hsieh, 2006). Mar...See the full content of this document
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