Applying Data Envelopment Analysis to operating performance in textile industry

• Autorzy: Ho C. H.

Identyfikatory

DOI

10.2478/v10304-012-0030-8

• Języki publikacji: EN

Abstrakty

EN

Operating performance could affect the survival and future development of a business that both businesses and business managers would devote to the enhancement of operating performance. Having developed for more than four decades, the consistent upstream, mid-stream and downstream system have been constructed in domestic textile industry. The output value of textiles in Taiwan has exceeded 480 billion NT dollars, which is not a sunset industry, as generally described. The impacts of high labour cost, environmental protection measures and changes of capital market as well as the competition of emerging countries, particularly Mainland China, have made textile industry in Taiwan face great market competition and pressure. Since textiles are regarded as one of the major products in Taiwan, the operating performance could affect the survival of the overall industry. In this case, operating performance survey of textile manufacturers in Taiwan during 2010–2012 is combined with Data Envelopment Analysis and Slack Variable Analysis to measure the total efficiency, pure technical efficiency and scale efficiency of top 12 textile manufacturers in Taiwan, tending to provide the reference of operating efficiency improvement for the manufacturers. The empirical results show that the overall efficiency in the 3 years appears 0.89 averagely. The relative efficiency (1) between two manufacturers, Far Eastern New Century and Ruentex Industries, achieves the optimal operating efficiency, whereas the remaining 10 are comparatively worse. Regarding the analysis of returns to scale, two textile manufacturers present constant returns to scale, with the optimal operating efficiency, whereas the remaining 10 show increasing returns to scale, revealing that expanding the scale could enhance the marginal return and further promote the efficiency.

Słowa kluczowe

EN

textile industry; traditional industries; data envelopment analysis; operating performance

PL

przemysł włókienniczy; tradycyjne gałęzie przemysłu; wyniki operacyjne

• Wydawca: Lodz University of Technology, Faculty of Material Technologies and Textile Design
• Czasopismo: Autex Research Journal
• Rocznik: 2013
• Tom: Vol. 13, no. 4
• Strony: 99--103
• Opis fizyczny: Bibliogr. 14 poz.

Twórcy

autor

Ho C. H.

• Department of Tourism Management, Far East University, Taiwan, ROC

Bibliografia

• [1] Kuo, Min-hua., Business Analysis and Valuation (written by K.G. Palepu, P.M. Healy, V.L. Bernard, Erik Peek, IFRS edition). Thomson, translated 2009.
• [2] Venkartraman, N., Ramanujan, V., Measurement of business performance in strategy research: a comparison of approaches. Academy of Management Review, 1986, 11(4), 801–815.
• [3] Robbins, S.P., Organizational Behavior. 2001.
• [4] Van De Ven, A.H., Ferry, D.L., Measuring and Assessing Organizations. New York: John Wiley & Sons, 1980.
• [5] Dess, G.C., Robinson, R.B., Measuring organizational performance in the absence of objective measures. Strategic Management Journal, 1984, 5(3): 265–273.
• [6] Wu, Wan-yi, Taiwanese firms’ investment strategy and operating performance in China and Southeast Asia. Fu Jen Management Review, 2010, 1: 51–75.
• [7] Chang, Kuo-shien, The assessment of performance on listed companies of textiles in Taiwan. Chiao Da Journal of Management, 2011, 139–168.
• [8] Kuo, Chun-han, Business operating performance evaluation – case study on domestic listing companies in textile industry. Journal of Management, 2010, 19(5), 811– 842.
• [9] Chen, Chin-chun, Business operating performance evaluation model – a case study on listing companies in Taiwan. Journal of Management, 2010, 15(3): 393–418.
• [10] Kang, Hsin-hong, Liao, Kuang-chiang, A study on the feasibility of the application of “portfolio model” on the strategy of diversification in direct investment. NTU Management Review, 2009, 171–197.
• [11] Chen, Kuo-chia, Strategic groups, mobility barriers, and performance: empirical research. Taiwan Economics, 2009, 45–61.
• [12] Ma, Wei-yang, An empirical study on hi-tech industrial development in Taiwan. Journal of Technology Management, 2010, 4(2), 57–71.
• [13] Fremont, A.S., Jr., Delbecg, A.L., Curmings, L.L., Organizational Decision Making. McGraw-Hill, 1970, p. 151.
• [14] Chnag, Chia-er, An empirical study of the investment strategy and performance in Mainland China – the case of Taiwan Information and Electronic Firms’ Investment. Journal of Management Science, 2011, 12(2): 153–168.