Performance review of Taiwanese IC design industry: DEA-based Malmquist productivity measure

  • Authors:
  • Wei-Hwa Pan;Yuan-Yao Feng;Yueh-Chuen Huang;Yan-Kwang Chen

  • Affiliations:
  • Department of Business Administration, National Yun-Lin University of Science & Technology, Taichung, Taiwan R.O.C.;Department of Business Administration, Ling Tung University, Taichung, Taiwan R.O.C.;Department of Business Administration, National Taichung Institute of Technology, Taichung, Taiwan R.O.C.;Department of Logistics Engineering & Management, National Taichung Institute of Technology, Taichung, Taiwan R.O.C.

  • Venue:
  • WSEAS Transactions on Computers
  • Year:
  • 2008

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Abstract

The total revenue of Taiwan's IC design industry is now the second in the world, only behind the United States. To keep pace with abroad leaders, continually innovating by the IC design companies to maintain and enhance their performance is the most import for obtaining the sustainable competitive advantage. This paper is concerned with a study on exploring the performance of Taiwan's IC design industry, including the managerial and productive technical efficiencies and their change over time. Data envelopment analysis (DEA)-based Malmquist method was employed to analyze the financial and non-financial data of 72 companies, from the financial panel listed in Taiwan Stock Exchange market, and examine the performance of these companies over the period from 2003 to 2005. Accordingly, IC design companies can recognize which function is important to their performance and which function can be further improved to achieve competitive advantage in the industry.