International Journal of Fuzzy Systems

, Volume 19, Issue 5, pp 1560–1584 | Cite as

Location Selection of High-tech Manufacturing Firms by a Fuzzy Analytic Network Process: A Case Study of Taiwan High-tech Industry

  • Kung-Jeng Wang
  • Yuliani Dwi Lestari
  • Vo Ngoc Bao Tran
Article
  • 117 Downloads

Abstract

The high-tech industry has great potentials in global economy and plays an important driving force in global manufacturing operations. However, high-tech firms sometimes have to deal with high-risk potentials such as limitation of human resources, powerful competitors, and high ratio of natural disasters. An alternative solution to overcome these issues is to seek a new place for locating manufacturing plants. In addition, the selection of the new location is a form of business expansion outside origin location which can strengthen firm’s position at the global level. This study presents a novel framework of location selection using fuzzy analytic network process to determine prospective manufacturing location and applies to Taiwan hi-tech firms in selecting China regions as the research subject. We conduct survey to 16 firms which are categorized into two groups (small-medium and large firms). Following our proposed location selection framework, we conclude that the two groups have different priorities of location determinants and location ranks. In choosing a location, small-medium firms prioritize cost rather than regulation and community, while large firms prioritize regulation rather than cost and community. In terms of location selection, both groups are prioritizing Central-Western China as their first choice.

Keywords

China Fuzzy analytic network process High-tech industry Location selection 

Notes

Acknowledgments

The authors gratefully acknowledge the comments and suggestions of the editor and the anonymous referees. This work is partially supported by the Ministry of Science and Technology and Ministry of Education, R.O.C. (Taiwan).

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Copyright information

© Taiwan Fuzzy Systems Association and Springer-Verlag Berlin Heidelberg 2017

Authors and Affiliations

  • Kung-Jeng Wang
    • 1
  • Yuliani Dwi Lestari
    • 2
  • Vo Ngoc Bao Tran
    • 1
  1. 1.Department of Industrial ManagementNational Taiwan University of Science and TechnologyTaipeiTaiwan, ROC
  2. 2.School of Business and ManagementInstitut Teknologi BandungBandungIndonesia

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