A Study on the Relationship among Supplier Capability, Partnership and Competitive Advantage in Taiwan's Semiconductor Industry

This research is focused on Taiwanese semiconductor industries to explore the impacts of supplier capability and partnership on organizational competitive advantages, in the hope of providing organizations with the key factors to competitive advantages for them to manage competitive challenges and to continue organization’s vitality. This study is first referring to relevant literatures to identify the measurement indices of supplier capabilities, partnerships and competitive advantages, which are used to collect data through questionnaires. Then, the statistical analyses including factor analysis, Pearson’s correlation, and multiple regression analysis are employed to examine the interrelationships among these factors in deciding how supplier’s capability and partnership affect competitive advantages. According to the results, supplier’s capabilities and partnerships have significantly positive correlation; both supplier’s capabilities and partnerships have positively influence on competitive advantages. In view of the findings, the study concludes that semiconductor industries have to stress on the evaluation of their suppliers’ capabilities, precisely to say, to take account of suppliers’ overall capabilities and resources integration, particularly innovativeness and quality, to enhance partnerships, to build up core competence of supplier chains through technical cooperation and strategic alliance. And all the efforts can help organizations achieve higher competitive advantages and constant growth of operational performance.