Selecting Partners in Strategic Alliances: An Application of the SBM DEA Model in the Vietnamese Logistics Industry

<i>Background:</i> Strategic alliance is a popular strategic option for business entities to strengthen the competitive advantages of all partners in a partnership. The global logistics industry has witnessed the formulation of several successful strategic alliances. However, the Vietnam...

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Bibliographic Details
Main Authors: Nguyen-Nhu-Y Ho, Phuong Mai Nguyen, Thi-Minh-Ngoc Luu, Thi-Thuy-Anh Tran
Format: Article
Language:English
Published: MDPI AG 2022-09-01
Series:Logistics
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Online Access:https://www.mdpi.com/2305-6290/6/3/64
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Summary:<i>Background:</i> Strategic alliance is a popular strategic option for business entities to strengthen the competitive advantages of all partners in a partnership. The global logistics industry has witnessed the formulation of several successful strategic alliances. However, the Vietnamese logistics industry seems to grow slowly and lacks long-term inter-firm partnerships. In such a context, it is critical to have a more effective approach to selecting partners in strategic alliances to increase long-term relationships and firm performance. <i>Method:</i> Thus, this study proposes using the SBM-I-C DEA model to examine and suggest partners for Vietnamese logistics firms to form strategic alliances. <i>Results:</i> Our findings show that integrating technology in managing strategic alliances will foster companies in the alliance to formulate a better strategy with up-to-date information on policies. <i>Conclusion:</i> Using the SBM-I-C DEA model, companies can minimize operating costs and optimize delivery time. Thus, companies can better satisfy customers. From the research findings, some implications are proposed for Vietnamese logistics companies.
ISSN:2305-6290