The role of manufacturing strategies in the business performance of publicly listed electronic chip manufacturing firms in Taiwan

• Main Author: Tseng, Ming-Lang
• Format: text
• Language: English
• Published: Animo Repository 2002
• Subjects: Manufactures; Business; Management; Electronic industries; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/933
• Institution: De La Salle University

This study determines the factors that contribute to the business performance of the publictly listed Electronic Chips Manufacturing firms in Taiwan. A structured questionnaire was used as the primary source of data and the Taiwan Stock Exchange as the secondary source of financial data of these electronic firms. Factor analysis using the principal component method with varimax rotation was applied to extract the key variables. Multiple regression analysis and the Pearson correlation were used to identify the factors contributing significantly to business performance. The findings of the analysis include: 1) increasing process flexibility and lowering defect rate result to an increased performance (current ratio) 2) increasing product flexibility and inventory accuracy also increases performance (operating revenue) 3) inventory accuracy contribute much to the performance (income from operations). Among the manufacturing decision factors, only administration improvement yielded a significant negative correlation between current ratio and quick ratio. This implies that the improvement of white-collar productivity and communication with external partners may not necessarily contribute to the increments in quick and current ratios. Since training costs are considered expenses, then these may not really contribute to their liquidity of assets particularly cash on hand. The need for computer-integrated-manufacturing as part of the reengineering in technology management is imperative. Decisions on product development leads to increase operating revenue while the other manufacturing decisions like administrative improvement, inventory and labor improvement--all considered as overhead expenses may not necessarily contribute to business performance. Inventing in quality processes like quality circles, information system and human resource development also positively contribute to operating revenue. To sum up, the multiple regression full models revealed that only process flexibility and low defect rate have shown significant contribution to the variations in both current and quick ratio. Hence, these two variables, process flexibility and low defect rate decisions are prioritized by the manufacturers that lead to increased performance.