Applying Fuzzy Decision-Making Trial and Evaluation Laboratory and Analytic Network Process Approaches to Explore Green Production in the Semiconductor Industry

Abstract

As environmental awareness grows, society emphasizes green business. Thus, semiconductor companies encompass energy-saving processes and innovative product development. This study employs the fuzzy decision-making trial and evaluation laboratory (DEMATEL) analysis method to assess the impact of four key dimensions, externalities, market orientation, green technology, and corporate social responsibility, on semiconductor companies’ green production decisions. This study uses the DEMATEL-based analytic network process (DANP) approach to rank the criteria order in green production decision-making. The results from the DEMATEL causality diagram highlight externalities as the most critical dimension influencing other dimensions of green production decisions. This study suggests that regulatory pollution punishment and subsidies emerge as the primary drivers for green production decisions. Companies adopt environmentally friendly production practices to prevent regulatory pollution penalties or reduce carbon trading costs. Additionally, the DANP results reveal that corporate image criteria in the corporate social responsibility dimension hold the utmost priority in semiconductor firms’ green production decision-making. This implies that considerations for improving a company’s image should take precedence as semiconductor companies seek shareholder support and governmental subsidies to ensure sustainable operations. Externalities arise as the secondary priority dimension in green production decision-making, aligning with the impact of externalities identified in DEMATEL findings.