Wei-Kang Wang

Capability and efficiency of intellectual capital: The case of fabless companies in Taiwan

It is important to increase their value by managing intellectual capital (IC), since fabless firms face an intensely competitive environment. The aim of this paper is develops a two-stage production process including IC capability and IC efficiency to characterize the IC performance of the fabless firms using a non-parametric frontier method - data envelopment analysis (DEA). The IC performance rating should be considered as a key element for achieving greater innovation and competitive advantages. The results show that IC efficiency is better than IC capability for these fabless firms; 15.8% of fabless firms perform well in both models and these firms can be treated as benchmarks for others; most firms operate at decreasing returns to scale, indicating that firms are facing a highly competitive environment; further mergers and acquisitions among firms should be considered so as to achieve economies of scale; the critical input/output measures will also help firms improve their performance and identify the key factors that impact a firms performance.

Designing a knowledge-based system for benchmarking: A DEA approach

First developed by Xerox in 1979, benchmarking provides measurement and comparison to improve processes and achieve higher performance. Benchmarking has proven a powerful tool for total quality management and process improvement. Successful benchmarking implementation is based on an effective benchmarking tool. To effectively implement benchmarking processes, this work proposes an integrated framework for the benchmarking tool and knowledge-based system using the data envelopment analysis (DEA) method, and then develops an intellectual benchmarking knowledge-based system (BKBS) for benchmarking, performance evaluation and process improvement. Accordingly, this work illustrates how the benchmarking knowledge-based system (BKBS) is implemented in a medical center. This system can help determine the particular benchmarking partners to evaluate the relative efficiency and fill the gaps between the benchmarking partners in the healthcare industry. Finally, the intellectual benchmarking knowledge-based system offers a very fast way to implement the benchmarking processes.

Dynamic efficiency: intellectual capital in the Chinese non-life insurance firms

Purpose – This paper aims to investigate the effect of intellectual capital (IC) on the operating efficiency of non-life insurance firms in China. Design/methodology/approach – The authors use a dynamic data envelopment analysis model called dynamic slacks-based measure (DSBM) model to estimate the operating efficiency of 32 Chinese non-life insurance firms. Using a panel data set for the period from 2006 to 2010, the authors run ordinary least squares (OLS) regressions to find the relationship between IC and efficiency performance. Findings – The authors find that the insurers have almost monotonically decreasing efficiency for the period from 2006 to 2010. Regression results show that human capital, structural capital and relational capital are significantly and positively related to operating efficiency. Research limitations/implications – This study suggests that managers of the Chinese non-life insurers should devote attention to the investments in IC to stay sustainable. Originality/value – This is ...

Life Insurance Companies' Performance and Intellectual Capital: A long-term perspective

This study used dynamic data envelopment analysis (dynamic DEA) to evaluate the operating performance of life insurance companies in Taiwan and China. In addition, this study adopted panel data regression, which employs the cross-section and time-series approaches, to investigate the impact of intellectual capital (IC) on operating performance. The results indicated that the overall performance of life insurance companies in China was better than that of life insurance companies in Taiwan. Furthermore, in both countries, the performance of life insurance companies with local capital was better than that of companies with foreign capital. The results also showed that human capital (HC) and structural capital (SC) had impacts on the operating performance of life insurance companies. The potential applications and strengths of DEA in assessing the life insurance industries in Taiwan and China are highlighted.

Production and Marketing Efficiencies of the U.S. Airline Industry: A Two-Stage Network DEA Approach

This chapter presents an application of a two-stage network data envelopment analysis (DEA) for examining the performance of 30 U.S. airline companies. The airline industry is a subject of concern because the industry is a major contributor to a country’s or even global economic development. Although a number of studies have explored airline performance using DEA, relatively few studies have applied a two-stage DEA model. The current chapter examines production efficiency and marketing efficiency through an additive two-stage network DEA model. This approach allows the black-box of the performance measurement process to be assessed, thus, providing a new direction in measuring airline performance. The chapter includes a managerial decision-making matrix and makes suggestions to help airline managers improve performance for airlines. In addition, a regression analysis of the effect of corporate governance mechanisms on airlines performance is conducted. Given the volatility of growth in the airline industry, it is expected that we will see more research related to performance management in the industry.

Corporate diversification and efficiency: evidence from Taiwanese top 100 manufacturing firms

Abstract For at least the last two decades, diversification has been an important issue in the strategic management research. This paper explores how diversification affects the corporate performance of the top 100 manufacturing companies in Taiwan, which were selected based on a ranking survey of Taiwanese manufacturing firms conducted by Common Wealth Magazine in 2014. This paper adopts a dynamic data envelopment analysis model to estimate efficiency in the first stage, and adopts OLS regression analysis in the second stage from 2009 to 2013. Two proxies, namely the Entropy approach and the Herfindahl–Hirschman Index, are used to proxy for diversification. The results indicate that diversification has positive impacts on dynamic efficiency, after controlling firm-specific factors. Concisely, this study empirically proves that diversification is an important corporate strategy for improving corporate performance over long-term periods. Overall, “putting eggs in various baskets” enable companies to not only survive, but also sustain competitive advantage in today’s challenging business world.

Decentralized and concentrated investments in China and the performance of Taiwanese listed electronic companies

ABSTRACT Ever since China surpassed Taiwan to become the largest exporter of electronic products, dependence between the two sides has deepened, which prompts Taiwanese companies to go public in China. This study conducted the data envelopment analysis (DEA) and regression analysis to analyse the impacts of the depth and breadth of investments in China on the performance of Taiwanese listed electronic companies. The empirical results show that, the breath of the investments in China has a positive correlation with the performance of Taiwanese companies; while the depth of investments in China has a negative and significant effect on the performances due to the companies’ lack of know-how, which leads to a high-learning cost. In summary, companies should strategize their decentralized and concentrated investments in China.