IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v42y2020i6p1287-1309.html
   My bibliography  Save this article

Strategic evaluation criteria to assess competitiveness of the service industry in Taiwan

Author

Listed:
  • Tsai, Pei-Hsuan

Abstract

This study uses industrial upgrading (I), export development (E), and investment promotion (K), or collectively, the IEK model to identify critical indicators to asses competitiveness of the service industry in Taiwan. The proposed development and evaluation model for the service industry uses the DEMATEL (decision-making trial and evaluation laboratory) method to construct an influential relationship between the dimensions and criteria; a DEMATEL-based analytic network process (DANP) to obtain influential weights; and a modified Vlšekriterijumska Optimizacija I Kompromisno Resenje (m-VIKOR) method to assess gaps in industry development performance. It illuminates current industry demands and helps to improve service firms’ operations through fewer developmental gaps and stronger policy and strategy. Further, an influential network relationship map (INRM) and influential weights can unravel the complex assessment system and prioritise industry improvements. The results demonstrate that upgrades must occur first to the industry, then to promoting of investments, and lastly, in developing exports. Finally, the practical implications for managing service firms have been discussed.

Suggested Citation

  • Tsai, Pei-Hsuan, 2020. "Strategic evaluation criteria to assess competitiveness of the service industry in Taiwan," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1287-1309.
    • Handle: RePEc:eee:jpolmo:v:42:y:2020:i:6:p:1287-1309
    DOI: 10.1016/j.jpolmod.2020.05.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161893820300715
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpolmod.2020.05.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morikawa, Masayuki, 2019. "Innovation in the service sector and the role of patents and trade secrets: Evidence from Japanese firms," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 43-51.
    2. Qun Zhao & Pei-Hsuan Tsai & Jin-Long Wang, 2019. "Improving Financial Service Innovation Strategies for Enhancing China’s Banking Industry Competitive Advantage during the Fintech Revolution: A Hybrid MCDM Model," Sustainability, MDPI, vol. 11(5), pages 1-29, March.
    3. Kim, Kijong & İlkkaracan, İpek & Kaya, Tolga, 2019. "Public investment in care services in Turkey: Promoting employment & gender inclusive growth," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1210-1229.
    4. Morgan, Robert E. & Katsikeas, Constantine S., 1997. "Obstacles to export initiation and expansion," Omega, Elsevier, vol. 25(6), pages 677-690, December.
    5. Woolf, Jules, 2008. "Competitive Advantage in the Health and Fitness Industry: Developing Service Bundles," Sport Management Review, Elsevier, vol. 11(1), pages 51-75, May.
    6. Inoue, Yuki & Tsujimoto, Masaharu, 2018. "New market development of platform ecosystems: A case study of the Nintendo Wii," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 235-253.
    7. Lee, Jong-Wha & McKibbin, Warwick J., 2018. "Service sector productivity and economic growth in Asia," Economic Modelling, Elsevier, vol. 74(C), pages 247-263.
    8. Opricovic, Serafim & Tzeng, Gwo-Hshiung, 2007. "Extended VIKOR method in comparison with outranking methods," European Journal of Operational Research, Elsevier, vol. 178(2), pages 514-529, April.
    9. Aggarwal, Raj & Goodell, John W., 2018. "Sovereign wealth fund governance and national culture," International Business Review, Elsevier, vol. 27(1), pages 78-92.
    10. Müller, Julian Marius & Buliga, Oana & Voigt, Kai-Ingo, 2018. "Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 2-17.
    11. P. L. Yu, 1973. "A Class of Solutions for Group Decision Problems," Management Science, INFORMS, vol. 19(8), pages 936-946, April.
    12. Baliamoune-Lutz, Mina, 2019. "Trade sophistication in developing countries: Does export destination matter?," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 39-51.
    13. Jules Woolf, 2008. "Competitive Advantage in the Health and Fitness Industry: Developing Service Bundles," Sport Management Review, Taylor & Francis Journals, vol. 11(1), pages 51-75, January.
    14. Anna-Leena Asikainen, 2015. "Innovation modes and strategies in knowledge intensive business services," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 77-95, March.
    15. Ayob, Abu H. & Freixanet, Joan, 2014. "Insights into public export promotion programs in an emerging economy: The case of Malaysian SMEs," Evaluation and Program Planning, Elsevier, vol. 46(C), pages 38-46.
    16. Heng-Li Yang & Shiang-Lin Lin, 2017. "The evaluation factors of adopting SoLoMo services: the hybrid fuzzy MCDM approach," Service Business, Springer;Pan-Pacific Business Association, vol. 11(3), pages 601-629, September.
    17. Ming-Tsang Lu & Gwo-Hshiung Tzeng & Hilary Cheng & Chih-Cheng Hsu, 2015. "Exploring mobile banking services for user behavior in intention adoption: using new hybrid MADM model," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 541-565, September.
    18. Abiad (ADB), Abdul & Furceri (IMF and University of Palermo), Davide & Topalova (IMF), Petia, 2016. "The macroeconomic effects of public investment: Evidence from advanced economies," Journal of Macroeconomics, Elsevier, vol. 50(C), pages 224-240.
    19. Opricovic, Serafim & Tzeng, Gwo-Hshiung, 2004. "Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS," European Journal of Operational Research, Elsevier, vol. 156(2), pages 445-455, July.
    20. Lim, Sung-Hoon, 2008. "How investment promotion affects attracting foreign direct investment: Analytical argument and empirical analyses," International Business Review, Elsevier, vol. 17(1), pages 39-53, February.
    21. Youchao Tan & Yang Zhang & Roohollah Khodaverdi, 2017. "Service performance evaluation using data envelopment analysis and balance scorecard approach: an application to automotive industry," Annals of Operations Research, Springer, vol. 248(1), pages 449-470, January.
    22. Azadegan, Arash & Wagner, Stephan M., 2011. "Industrial upgrading, exploitative innovations and explorative innovations," International Journal of Production Economics, Elsevier, vol. 130(1), pages 54-65, March.
    23. Ancarani, Alessandro & Di Mauro, Carmela & Mascali, Francesco, 2019. "Backshoring strategy and the adoption of Industry 4.0: Evidence from Europe," Journal of World Business, Elsevier, vol. 54(4), pages 360-371.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsai, Pei-Hsuan & Wang, Ying-Wei & Chang, Wen-Chang, 2023. "Hybrid MADM-based study of key risk factors in house-for-pension reverse mortgage lending in Taiwan's banking industry," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    2. Pei-Hsuan Tsai & Chih-Jou Chen & Ho-Chin Yang, 2021. "Using Porter’s Diamond Model to Assess the Competitiveness of Taiwan’s Solar Photovoltaic Industry," SAGE Open, , vol. 11(1), pages 21582440209, January.
    3. Tsai, Pei-Hsuan & Tang, Jia-Wei, 2023. "Consumers' switching intention towards E-commerce platforms’ store-to-store pickup services: The application of the extended PPM model," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Tsai, Pei-Hsuan & Kao, Ya-Ling & Kuo, Szu-Yu, 2023. "Exploring the critical factors influencing the outlying island talent recruitment and selection evaluation model: Empirical evidence from Penghu, Taiwan," Evaluation and Program Planning, Elsevier, vol. 99(C).
    5. Tsai, Pei-Hsuan & Wang, Ying-Wei & Yeh, Hsin-Jang, 2021. "An evaluation model for the development of more humane correctional institutions: Evidence from Penghu Prison," Evaluation and Program Planning, Elsevier, vol. 89(C).
    6. Tsai, Pei-Hsuan & Tang, Jia-Wei & Chen, Chih-Jou, 2022. "Partnerships that go places: How to successfully market products from vendor partners at retail stores from the vendors’ perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    7. Tsai, Pei-Hsuan & Chen, Chih-Jou, 2021. "Entertainment in retailing: Challenges and opportunities in the TV game console industry," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    8. Pei-Hsuan Tsai & Chih-Jou Chen & Jia-Wei Tang, 2021. "Key Factors Influencing Talent Retention and Turnover in Convenience Stores: A Comparison of Managers’ and Employees’ Perspectives," SAGE Open, , vol. 11(4), pages 21582440211, December.
    9. Tsai, Pei-Hsuan & Kao, Ya-Ling & Tang, Jia-Wei, 2023. "Key factors influencing mass willingness to use CESPs under green concept: ECOCO smart recyclers as a case study," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    10. Witold Torbacki, 2021. "A Hybrid MCDM Model Combining DANP and PROMETHEE II Methods for the Assessment of Cybersecurity in Industry 4.0," Sustainability, MDPI, vol. 13(16), pages 1-35, August.
    11. Tsai, Pei-Hsuan & Wang, Ying-Wei & Kao, Hui-Shu, 2022. "Applying DEMATEL-ANP approach to explore the intention to hold roadside wedding banquets in Penghu: A consumers’ perspective," Evaluation and Program Planning, Elsevier, vol. 95(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tsai, Pei-Hsuan & Chen, Chih-Jou, 2021. "Entertainment in retailing: Challenges and opportunities in the TV game console industry," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    2. Chen, Lisa Y. & Wang, Tien-Chin, 2009. "Optimizing partners' choice in IS/IT outsourcing projects: The strategic decision of fuzzy VIKOR," International Journal of Production Economics, Elsevier, vol. 120(1), pages 233-242, July.
    3. Serafim Opricovic, 2009. "A Compromise Solution in Water Resources Planning," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(8), pages 1549-1561, June.
    4. Juin-Hao Ho & Gwo-Guang Lee & Ming-Tsang Lu, 2020. "Exploring the Implementation of a Legal AI Bot for Sustainable Development in Legal Advisory Institutions," Sustainability, MDPI, vol. 12(15), pages 1-17, July.
    5. S. Meysam Mousavi & Fariborz Jolai & Reza Tavakkoli-Moghaddam, 2013. "A Fuzzy Stochastic Multi-Attribute Group Decision-Making Approach for Selection Problems," Group Decision and Negotiation, Springer, vol. 22(2), pages 207-233, March.
    6. Shu-Kung Hu & James J. H. Liou & Ming-Tsang Lu & Yen-Ching Chuang & Gwo-Hshiung Tzeng, 2018. "Improving NFC Technology Promotion for Creating the Sustainable Education Environment by Using a Hybrid Modified MADM Model," Sustainability, MDPI, vol. 10(5), pages 1-24, April.
    7. Bo-Wei Zhu & Jia-Rui Zhang & Gwo-Hshiung Tzeng & Shan-Lin Huang & Lei Xiong, 2017. "Public Open Space Development for Elderly People by Using the DANP-V Model to Establish Continuous Improvement Strategies towards a Sustainable and Healthy Aging Society," Sustainability, MDPI, vol. 9(3), pages 1-29, March.
    8. Shih-Chia Chang & Hsu-Hwa Chang & Ming-Tsang Lu, 2021. "Evaluating Industry 4.0 Technology Application in SMEs: Using a Hybrid MCDM Approach," Mathematics, MDPI, vol. 9(4), pages 1-21, February.
    9. Bilbao-Terol, Amelia & Arenas-Parra, Mar & Cañal-Fernández, Verónica & Antomil-Ibias, José, 2014. "Using TOPSIS for assessing the sustainability of government bond funds," Omega, Elsevier, vol. 49(C), pages 1-17.
    10. Kaya, Tolga & Kahraman, Cengiz, 2010. "Multicriteria renewable energy planning using an integrated fuzzy VIKOR & AHP methodology: The case of Istanbul," Energy, Elsevier, vol. 35(6), pages 2517-2527.
    11. Başak Bulut Karageyik & Şule Şahin, 2017. "Determination of the Optimal Retention Level Based on Different Measures," JRFM, MDPI, vol. 10(1), pages 1-21, January.
    12. Chunguang Bai & Behnam Fahimnia & Joseph Sarkis, 2017. "Sustainable transport fleet appraisal using a hybrid multi-objective decision making approach," Annals of Operations Research, Springer, vol. 250(2), pages 309-340, March.
    13. Gudiel Pineda, Pedro Jose & Liou, James J.H. & Hsu, Chao-Che & Chuang, Yen-Ching, 2018. "An integrated MCDM model for improving airline operational and financial performance," Journal of Air Transport Management, Elsevier, vol. 68(C), pages 103-117.
    14. Amir Hossein Salimi & Amir Noori & Hossein Bonakdari & Jafar Masoompour Samakosh & Ehsan Sharifi & Mohammadreza Hassanvand & Baharam Gharabaghi & Mehdi Agharazi, 2020. "Exploring the Role of Advertising Types on Improving the Water Consumption Behavior: An Application of Integrated Fuzzy AHP and Fuzzy VIKOR Method," Sustainability, MDPI, vol. 12(3), pages 1-33, February.
    15. Kao-Yi Shen, 2017. "Compromise between Short- and Long-Term Financial Sustainability: A Hybrid Model for Supporting R&D Decisions," Sustainability, MDPI, vol. 9(3), pages 1-17, March.
    16. Chui-Hua Liu & Gwo-Hshiung Tzeng & Po-Yen Lee, 2019. "Combined CFPR and VIKOR Model for Enhancing the Competencies of Domestic Chain Hotel Groups," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 901-927, May.
    17. Qun Zhao & Pei-Hsuan Tsai & Jin-Long Wang, 2019. "Improving Financial Service Innovation Strategies for Enhancing China’s Banking Industry Competitive Advantage during the Fintech Revolution: A Hybrid MCDM Model," Sustainability, MDPI, vol. 11(5), pages 1-29, March.
    18. Yupeng Liu & Yutao Yang & Yue Liu & Gwo-Hshiung Tzeng, 2019. "Improving Sustainable Mobile Health Care Promotion: A Novel Hybrid MCDM Method," Sustainability, MDPI, vol. 11(3), pages 1-29, January.
    19. Kuan-Wei Huang & Jen-Hung Huang & Gwo-Hshiung Tzeng, 2016. "New Hybrid Multiple Attribute Decision-Making Model for Improving Competence Sets: Enhancing a Company’s Core Competitiveness," Sustainability, MDPI, vol. 8(2), pages 1-26, February.
    20. Wu, Hung-Yi & Lin, Yi-Kuei & Chang, Chi-Hsiang, 2011. "Performance evaluation of extension education centers in universities based on the balanced scorecard," Evaluation and Program Planning, Elsevier, vol. 34(1), pages 37-50, February.

    More about this item

    Keywords

    Service industry; IEK model; DEMATEL; DANP; Modified VIKOR;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:42:y:2020:i:6:p:1287-1309. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.