Keywords: financial ratio, managerial performance, performance change, data envelopment analysis, DEA, Malmquist productivity approach, technology management, electronics industry, Taiwan, performance evaluation, strategy formulation, business management
An application of data envelopment analysis to measure the managerial performance of electronics industry in Taiwan
In formulating competitive strategies, one must first measure the comparative performance of the entire industry, and also may understand one's advantages and disadvantages. This paper uses the effectiveness model to measure the relative managerial performance and performance change of 50 listed corporations of the electronics industry under multiple financial ratio criteria. On the basis of the measurement of managerial performance, the entire industry can be partitioned into six clusters. Effective management strategies are developed specifically to each of six clusters of electronics industry. It was expected that this study would provide improvements to the existing financial ratio analysis; at the same time, illustrate the linkage between performance evaluation and strategy formulation for future business management needs of managers.