Evaluating the sustainable operating performance of electronics industry groups: Taiwanese firms in mainland china

Abstract

Mainland China’s economy is growing rapidly, with China-made electronic products selling around the world. Taiwan's electronics groups running operations or production locations in Mainland China have performed strongly in recent years. At one time more than 90% of the world's laptops were manufactured by Taiwanese makers, largely in China. This study assessed the sustain-ability operating performance of the top 20 Taiwanese electronic groups (including 272 companies) with an average of 38 years of sustained operation in China, using the Data Envelopment Analysis Method (DEA) to measure the performance and operating efficiency of the group as a whole, with net operating revenue and pre-tax profit margin as the output elements, and total assets, capital, and total expenses as input elements, to assess whether changes in operating performance and productivity over the three-year period (2018–2020) are significant. The results showed that two Taiwanese electronics groups (Quanta Computer and Catcher Technology) were relatively efficient during the study period and that the overall productivity of the electronics groups was in a state of sustainability. This study uses the industrial cluster viewpoint to evaluate the sustainability operating performance of the groups. Results show that using DEA for performance evaluation is both comprehensive and practical. The findings of this study may be used as a reference in creating sustainable operations and improving a firm’s production efficiency through the evaluation of firm resource allocation.