Title: A two-stage study of grey system theory and DEA model in strategic alliance: an application in Vietnamese textile and garment industry
Authors: Phu Nguyen Hoang; Duy Nguyen Quang
Addresses: School of Business, International University – Vietnam National University, Quarter 6, Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam ' School of Business, International University – Vietnam National University, Quarter 6, Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Abstract: Textile and garment industry in Vietnam has developed dramatically recently thanks to free trade agreements and increased living standards of citizens. Nevertheless, there are still significant challenges such as lack of modern technology and remarkable competition from foreign companies. Strategic alliance is recommended for textile and garment firms to solve their current problems. With the help of grey forecasting model and DEA model, the efficiency of enterprises in Vietnam textile and garment industry is calculated, providing a base to figure out suitable alliance in the future. Sixteen companies in this field are selected and the data is collected from financial reports for consecutive financial years (2014-2018). Among those firms, Thanh Cong Textile and Garment Investment Trading Joint Stock are chosen to be the target decision-making unit (DMU). After processing grey and DEA model, Viet Tien Garment Corporation is suggested to be the best alliance for Thanh Cong JSC, due to the highest efficiency increase for both firms after cooperation. Although this research is only about textile and garment field, it can also be applied successfully to other manufacturing industries.
Keywords: Vietnamese textile and garment industry; strategic alliance; grey forecasting model; DEA model.
Asian Journal of Management Science and Applications, 2019 Vol.4 No.2, pp.77 - 98
Received: 26 Nov 2019
Accepted: 07 Mar 2020
Published online: 16 Oct 2020 *