Abstract
China's strong economy and its growing market demand have attracted
the investments of numerous offshore entrepreneurs. This paper describes
diverse efficiency measures to characterize the productivity efficiency
of offshore entrepreneurs in China. Productivity efficiency ratings
should be considered as a key element for achieving greater business
performance and a better market position. This study applies the
Data Envelopment Analysis (DEA) approach combining öperating flexibility"
to measure the magnitude of performance differences between the entrepreneurs.
Thirty-four leading firms of Taiwan in China were used as samples
for analysis. The empirical result reveals that the overall technical
inefficiencies of the firms are primarily due to pure technical inefficiencies
rather than scale inefficiencies. A scale problem really does exist
in these Taiwanese firms in China, which can be treated as support
for future mergers and acquisitions between the firms as well as
for public policy making for offshore investments. A benchmark-learning
roadmap is constructed for those inefficient groups in order to improve
their efficiency progressively. In addition, the analysis of the
operating performance by DEA can provide the offshore entrepreneurs'
operations with insights into resource allocation and competitive
advantage as well as help with strategic decision-making, especially
regarding operational styles under an intense competitive environment.
© 2007 College of Management, National Cheng Kung University.
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