Performance ranking of Asian lead frame firms: a slack-based method in data envelopment analysis

Abstract

With the quick growth of economics, the semiconductor foundry in the Asian area produces a large amount of derived demand for the lead frame. To deal with the quickly changing competitive environment in high technology innovation, better performing firms can constantly capture a competitive advantage. A survey is conducted to obtain the operating data of Asian lead frame firms and a slack analysis in data envelopment analysis (DEA) is applied to identify the benchmarks of the Asian lead frame industry according to their management performance. This study is carried out through literature review and experts’ opinions to conclude assessing factors. This can aid the scholars in their performance evaluation of the related industries. We also interview the CEOs of benchmark firms to attain the outstanding strengths and strategies. In addition, this study investigates the differences among firms in proposing possible improvement strategies for inefficient firms.

Keywords:

• Data envelopment analysis
• Lead frame industry
• Performance
• Slack
• Ranking