How Service Innovation Create Superior Performance through Value-added Interaction ─ a Case Study of a Taiwan Semiconductor Manufacturing Company
Date Issued
2008
Date
2008
Author(s)
Chuang, Ming-Yueh
Abstract
In the era of knowledge-economics, knowledge and innovation substitute the labor and capital to become the most important production factors. In Taiwan, most firms play as the outsourced manufacturers. Although firms in Taiwan aggressively invest in R&D, they ignore the importance of manufacturing service innovation. Services can provide more added-value to their customers so that service innovation is a series of systematic-activities to integrate new technologies, efficient process and high-level human resource to create differentiation and added-value. Only by providing different service to customers, firms will be much more competitive than others. his research focuses on the Semiconductor industry. On one hand, it is one of the Two Trillion and Twin Star Industries. On the other hand, in Taiwan, the firms in Semiconductor industry not only work specialization but also have well-designed structures. As a result, this research concentrates on studying that how service innovation increase these firms'' performance. The purposes of this research are to introduce the framework of TSMC’s service innovation, to explore the influence of service innovation on performance, to investigate the impact of different partnership mechanism and environmental uncertainty, and to provide suggestions for the construction of management mechanism of service innovation.aiwan Semiconductor Manufacturing Company (TSMC), one of the world’s largest dedicated integrated circuit foundries, implemented the service innovation to strengthen the relationship with its customers. Customers are able to access directly to TSMC''s and its strategic alliance partners'' information system and thereby receive immediate status reports of their orders or some other feedback. In this paper, the conceptual framework of TSMC''s service innovation is introduced, and the organizational performance resulted from service innovation are investigated. Implications of TSMC''s experience are then discussed. The finding suggests that organizational performance is positively affected by the implementation of service innovation. Besides, partnership mechanism and environmental uncertainty will moderate the relationships between service innovation and value-added interaction.
Subjects
Service Innovation
Social Interaction
Organizational Performance
Foundry
Semiconductor industry
TSMC
Type
thesis
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