Wen-Min Lu

Benchmarking the operating efficiency of Asia container ports

The aim of this paper is to explore the operating efficiency, the scale efficiency targets, and the variability of DEA efficiency estimates of Asian container ports. This study applies data envelopment analysis (DEA) with the traditional DEA model, most productive scale size concept, returns to scale approach, and bootstrap method to assess the operating performance, set scale efficient targets, and determine efficiency rankings of Asian container ports. The results of this study can provide port managers with insights into resource allocation, competitive advantages, as well as optimization of the operating performance. The potential applications and strengths of DEA in assessing the Asian container ports are highlighted.

Evaluating The Performance Of The Taiwanese Hotel Industry Using A Weight Slacks-Based Measure

The purpose of this paper is threefold: to assess the performance of 55 international tourist hotels in Taiwan in 2001 in terms of managerial, occupancy, and catering efficiencies; to analyze hotel operating characteristics, which might explain the variation in managerial efficiencies across these hotels; and to measure productivity growth in the 34 international tourist hotels over the years 1990–2001. Empirical results indicate that (1) the marketing for lodging services was not operated efficiently in 2001; (2) the hotels operated poorly both at the levels of occupancy and catering efficiencies in 2001; (3) there is a weak tendency for a hotel with relative high catering efficiency to go with good occupancy efficiency; (4) differences in operating variables, such as the floor space of catering department, the number of guest rooms, the closeness of a hotel to CKS international airport, and the number of employees do have a significant influence upon hotel performance; and finally, (5) about 61.76% of hotels had annual productivity changes over time.

A closer look at the economic-environmental disparities for regional development in China

Abstract Although China has harvested the fruits of its rapid economic growth over a period of several decades, it has encountered serious environmental problems, an important one being air pollution in the form of soot, dust, and sulfur dioxide. In considering the concept of ‘green-GDP’, this paper analyzes China’s regional development by examining its economic performance while taking into account various environmental factors. In addition to computing technical efficiency for 31 regions in China, a cross-efficiency measure is applied to differentiate the genuine DMUs. ‘Overall’ efficient regions and ‘false positive’ ones are recognized by a false positive index (FPI). It is found that the coastal regions perform on average better than the inland regions both economically and environmentally. For inefficient regions, the benchmark should be those regions with high cross-efficiency mean scores (e.g., Guangdong) rather than those with high self-appraisal scores (e.g., Shanghai). A cross-tabulation illustrating the difference between GDP-oriented performance and Pollution-oriented performance shows that the coastal regions make up the dominant proportion in terms of the benchmarks for economic-environmental optimization.

DOES SIZE MATTER? FINDING THE PROFITABILITY AND MARKETABILITY BENCHMARK OF FINANCIAL HOLDING COMPANIES

The aim of this paper is to explore the efficiency and the benchmarks of financial holding companies (FHCs) for a small open economy, Taiwan. We employ a two-stage production process including profitability and marketability performance using a non-parametric frontier method — data envelopment analysis (DEA). Furthermore, the factor-specific measure and BCC (Banker–Charnes–Cooper) model are combined together not only to identify the inputs/outputs that are most important but also to distinguish those FHCs which can be treated as benchmarks. Our empirical result shows that (1) big-sized FHCs are generally more efficient than small-sized ones; (2) FHCs with the main body of insurance averagely perform better than the other two types (banks and securities); (3) while small efficient FHCs are easily to become benchmarks, big efficient FHCs are deemed as competitive niche players; (4) further mergers and acquisitions among FHCs should be considered so as to achieve economies of scale. The profitability/marketability matrix of FHCs is also presented.

Performance Benchmarking For Taiwan’s International Tourist Hotels

Abstract Jhis study proposes an alternative data envelopment analysis (DEA) method to explore the managerial performance, the input congestion, and the benchmarks of intemational tourist hotels (ITHs) for a small open economy, Taiwan. Several empirical results are shown: (1) most ITHs operate at decreasing returns to scale, indicating that ITHs are facing a highly competitive environment; (2) the intemational chain ITHs are generally more efficient than independent-owned ones; (3) ITHs Iocated in resort areas operate slightly better on average than ones located in metropolitan areas; (4) ITHs that are close to CKS intemational airport operate slightly worse on average than ones far from CKS intemational airport; (5) congestion analysis reveals that inefficient ITHs lack the ability to integrate their resources, especially in the total area of the catering division and the number of guest rooms; and finally, (6) the reference-share measure shows that efficient intemational chain ITHs are able to more easily become benchmarks. The findings show that efficient intemational chain ITHs are more competitive and they should provide examples of operating practice.

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.

A Cross-Efficiency Profiling For Increasing Discrimination in Data Envelopment Analysis

Abstract Data Envelopment Analysis (DEA) cannot provide adequate discrimination among effieient decision making units (DMUs). To discriminate these effieient DMUs is an interesting research subject. The purpose of this paper is to present a Cross-Efficiency Prollling (CEP) model which can be used to improve discriminalitin power of DEA and condiicl a methodological comparison of CEP anti the other developed methods without a priori information. CEP retains ihe original spirilot DEA in trying to extract as much information as ptissible from the data without requiring pre-selecied weights on inputs and outputs. We propose ihat inputs which are not substitutes for each other be assessed separately and only with respect to outputs which consume them or to which they are otherwise related. In this way input-specific ratings based on the concept of cross-efficiency measure arc derived giving a profile for each DMU. We will demonstrate that CEP is more discriminating through an example taken from Baker and Talluri [Computer and Industrial Engineering, 32(1), 101–108 (1997)].

Assessing the performance and finding the benchmarks of the electricity distribution districts of Taiwan power company

This paper proposes an alternative data envelopment analysis method to explore the efficiency, the resource allocation, and the benchmarks of the electricity distribution districts (EDDs) of Taiwan Power Company in 2003. Several empirical results are shown: 1) the EDDs covering the high-tech industry park are more efficient, on average, than ones involved in the nonhigh-tech industry park; 2) the EDDs located in urban areas outperform those located in rural areas; 3) the large-sized EDDs generally are more able to integrate their resources and to operate efficiently; 4) the benchmark-share measure shows that while small-size efficient EDDs can easily become benchmarks, large-size efficient EDDs are deemed as competitive niche players; and finally, 5) the effect on these EDDs merging their activities should be investigated to explore the possibility of increasing competitive advantage in the future.

Network-based method for ranking of efficient units in two-stage DEA models

This study presents a methodology that is able to further discriminate the efficient decision-making units (DMUs) in a two-stage data envelopment analysis (DEA) context. The methodology is an extension of the single-stage network-based ranking method, which utilizes the eigenvector centrality concept in social network analysis to determine the rank of efficient DMUs. The mathematical formulation for the method to work under the two-stage DEA context is laid out and then applied to a real-world problem. In addition to its basic ranking function, the exercise highlights two particular features of the method that are not available in standard DEA: suggesting a benchmark unit for each input/intermediate/output factor, and identifying the strengths of each efficient unit. With the methodology, the value of DEA greatly increases.

Intellectual capital and national innovation systems performance

Innovation is a key resource for the well-being of national economies and international competitive advantages. First, this study develops a network data envelopment analysis (DEA) production process to evaluate the R&D efficiency and economic efficiency of the national innovation system (NIS) in 30 countries. Our findings show that the R&D efficiencies of the NIS are better than the economic efficiencies. Second, this study examines the effect of intellectual capital (IC) on the NIS performance through truncated regression. Our findings indicate that IC does play an important role in affecting the NIS performance. Finally, this study presents a managerial decision-making matrix and makes suggestions through a performance improvement strategy map to help government and managers improve the NIS performance.