In the decade of 1990s, many traditional industries of Taiwan, especially those of labor intense type, began to transfer their production lines to off shore sites for their foreign direct investment. Many of them were following their customers¡¦ migrations to China, Vietnam and other Southeast Asian countries based on the need of upgrading their competence through supply chain integration and taking advantages of the abundance in human resource and lower labor cost in these countries. This study applies tanning industry A company as a model which became a multi-national corporate (MNC) by establishing its first tannery in Taiwan during the 1980s, building up its second factory in China in 1998 and then opening its third one in Vietnam for mass production in 2004. Concerning the environmental and water conservation issues, the three tanneries of A company utilize a production process using wet blue instead of salted hides that most tanneries use as raw material to make finished leather as products. In the past few years, the volatility in hide market price, over capacity in the tanning industry worldwide, and customer¡¦s bargaining power increase made a dramatic fall in the margins of tanning industry. Suffering from the low margins, A company is seeking the possibility of vertical integration in raw material supply by investing a beam house tannery with slated hide as raw material to make wet blue for its three tanneries producing finished leather. This study focused on the critical factors in the site selection decision making for A company¡¦s overseas wet blue tannery investment.
In this study, the high level management members of A company and selected experts from other tanneries were interviewed with a pretest questionnaire and then an AHP questionnaire on the critical factors in site selection decision making for multinational tanning industry¡¦s overseas vertical integration investment. The answered AHP questionnaires were analyzed with software Expert Choice 2000 for Analytic Hierarchy Process(AHP) analysis.
The conclusions of this study based on the AHP analysis results include:
1. The critical factors in site selection decision making for multinational tanning industry¡¦s overseas vertical integration investment: the decisive elements in level two and level three of the AHP model as well as the ranking in priority of all decisive elements.
2. The suggested most favorable site for A company to invest a wet blue tannery for its vertival integration.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0723109-233254 |
| Date | 23 July 2009 |
| Creators | James, Jyh-Haw |
| Contributors | Pei-How Huang, Hsien-Tang Tsai, Jen-Jsung Huang, Cher-Min Fong |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0723109-233254 |
| Rights | campus_withheld, Copyright information available at source archive |
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