A study for sustainable development in optoelectronics industry using multiple criteria decision making methods

Abstract

This study assessed the operational efficiency of the optoelectronics industry in the Southern Taiwan Science Park (STSP) between 2007 and 2011 by using multiple criteria decision making methods (data envelopment analysis, Malmquist productivity index and Bootstrap). The data analysis showed that during the study period, meaning that the operational efficiency gap among manufacturers in STSP is widening. Among these manufacturers, eight manufacturers exhibited constant returns to scale, which was more than a half of the overall decision making unit (DMU), indicating that the operational scale of these manufacturers was nearing the optimal scale. Based on Malmquist productivity index (MPI) analysis, the factors that affect the operational efficiencies of optoelectronics manufacturers’ were as follow: operational cost, the number of employees, and the amount of fixed assets. The development should be focused on increasing technological efficiency and technological change in the future. Finally, based on Bootstrap, the results showed that the focus should be on the production technology while improving productive efficiency to ensure sustainable development of the entire domestic optoelectronics industry in the future.

Keywords:

• sustainable development
• operational efficiency
• data envelopment analysis
• Malmquist productivity index
• Bootstrap

Additional information

Notes on contributors

Chun-Chu Liu

Chun-Chu LIU. PhD, Professor at the Department of International Business and Director of Executive Master of Business Administration, Chang Jung Christian University, Taiwan. Author of about 70 scientific articles and 23 projects. Research interests: performance management, multiple criteria decision making, innovation management, and financial institutions management.

An-Chin Cheng

An-Chin CHENG. PhD, Assist Professor at the Graduate Institute of Business Administration, Chaoyang University of Technology, Taiwan. His current research interests include management of technology, technology diffusion and forecasting, decision making, sustainable development and new product management. He has published papers in Technovation, Technological and Economic Development of Economy, Technological Forecasting and Social Change, Romanian Journal of Economic Forecasting, and other journals.

Shih-Hui Chen

Shih-Hui CHEN. PhD student at the Graduate School of Business and Operations Management, Chang Jung Christian University, Taiwan. Research interests: performance management, multiple criteria decision making, and innovation management.