Title: Exploring the operating efficiency of semiconductor industry by a sustainable development approach

Authors: Shiu-Wan Hung, Mei-Chun Liu

Addresses: Department of Business Administration, National Central University, No. 300, Jung-Da Road, Jung-Li city, Tao-Yuan 320, Taiwan. ' Department of Business Administration, National Central University, No. 300, Jung-Da Road, Jung-Li city, Tao-Yuan 320, Taiwan

Abstract: This study attempts to characterise performance in terms of a simple indicator (revenue) to a multi-dimensional systems perspective, which includes the development of eco-efficiency and the sustainable development indicator. The influence of Perfluorocompounds (PFCs) on the operating performance of the semiconductor industry is studied by using data envelopment analysis (DEA), which inherently recognises tradeoffs among various measures. Samples used in this study included 14 global semiconductor firms, each of which was treated as a decision making units (DMUs) under DEA analysis. The empirical result reveals that the overall technical inefficiencies of the firms are due primarily to pure technical inefficiencies rather than the scale inefficiencies. In addition, the results in this study indicate that the operating efficiency ranking changes when the amount of PFCs emission is considered in the analysis.

Keywords: sustainable development; semiconductor industry; perfluorocompounds; PFCs; data envelopment analysis; DEA; sustainability; revenue; eco-efficiency; decision making units; technical inefficiency; scale inefficiencies; operating efficiency; PFC emissions.

DOI: 10.1504/IJGE.2010.035336

International Journal of Green Economics, 2010 Vol.4 No.2, pp.145 - 155

Published online: 23 Sep 2010 *

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