A Comparison of Three-Stage DEA and Artificial Neural Network on the Operational Efficiency of Semi-Conductor Firms in Taiwan

Abstract

In this study, the data envelopment analysis (DEA), three-stage DEA (3SDEA) and artificial neural network (ANN) are employed to measure the technical efficiency of 29 semi-conductor firms in Taiwan. Estimated results show that there are significant differences in efficiency scores among DEA, 3SDEA and ANN analysis. The advanced setting of the three stages mechanism of DEA does show some changes in the efficiency scores between DEA and ANN approaches. We further find that the environmental factor is still a significant variable to explain technical efficiency inTaiwan, irrespective of whether a DEA, 3SDEA or ANN approach is used.