How to Evaluate the Performance of the Taiwan Biotech and Biopharmaceutical Corporations?

Tzu-Chun Sheng

doi:10.5539/ibr.v8n10p1

Abstract

Modern biotechnology and pharmaceutical industry, the most developmental mainstream, has been generally acknowledged in the 21 st century. The approach of this study surmounted the traditional DEA and SFA, combining with modified Delphi approach, ISM, FANP and performance evaluation table to build evaluation mode of operating performance precisely and completely in Taiwan biotech and pharmaceutical corporations. Considering 4 criteria and 18 sub-criteria complied to evaluate the operating performance in the enterprise. The analyzed result appeared, the significance of criteria is “Product and technology R&D”, “Financial performance”, “Production and quality management” and “Organization characteristics and operation management” in sequence. The top 5 key sub-criteria influence the evaluation of operating performance in Taiwan biotech and pharmaceutical corporations are “Profitability”, “Efficiency of production and cost”, “Innovative products and R&D strategies”, “Quality management and cost control” and “Operation strategy and business mode”. The last 5 key sub-criteria are “Human resources management”, “Project management”, “Innovation of process technology”, “Competence of financial operation” and “Market share”. Finally, the top 10 of conglomerate revenue in listed companies taken as the sample of empirical research on this study. According to the experts’ evaluation, the total point of weighted average is 58.9020 of whole sample in complete period in all enterprises, which fell at the grade of ‘Slightly good’ as a whole. The related results accord with the real situation in the industry. The result of this study is able to be a significant basis as the policies drawn up by government, operating performance evaluated by the enterprise and investment target measured by the investors.

Highlights

Modern biotechnology and pharmaceutical industry have combined with the multi-cross-fields such as the molecular biology, microbiology, gene engineering, electrical engineering, the mechanical engineering and so on as the research results in twenty years recently
New founded corporations of biotechnology and pharmaceuticals, for example, Amgen, Biogen, Genentech, and Hybritech, redesigned and composed the products with gene proteins as the research objective to initiate the new aspect of modern biological science and technology and pharmaceutical industry in the early of 80‟s. Human genome project (HGP) was facilitated to complete the drawing of human genome map by the USA and the UK in 2003
In accordance with literature review and fifteen executives at high-level in Taiwan biotech and pharmaceutical corporations, subsequent to the questionnaire of expert interview through modified Delphi approach, proposed by Murry and Hammons (1995) as the first stage to compile 4 criteria and 18 sub-criteria considered while assessing the operation performance in the corporation, as Figure 2

Summary

Introduction

Modern biotechnology and pharmaceutical industry have combined with the multi-cross-fields such as the molecular biology, microbiology, gene engineering, electrical engineering, the mechanical engineering and so on as the research results in twenty years recently. Biotechnology has been extensively applied to a plenty of industries as the research and development of pharmaceuticals, health care medicine, environmental protection, food science and technology, material science and the explosion of new energies...etc. The governments in most of advanced countries value the investments and developments in biology technology and pharmaceutical industry with prudent attitude. These governments invest huge resources in such emerging industry to bring in enormous profits. A number of global nations incorporate the industry of biotechnology with national key industry as future developed project, founding the policies as centralized www.ccsenet.org/ibr

Methods

Results

Conclusion