Performance assessment for electronic manufacturing service providers using two-stage super-efficiency SBM model

Abstract

ABSTRACTManufacturing Service providers (EMSs) offer services to Original Equipment Manufacturers (OEMs). However, increasing challenges require an EMS to be more capable, adaptable and responsive. For survival, an EMS manager has to understand its relative efficiency in the industry. In addition, an investor also requires such information for investments. In this research, we propose a novel approach, which combines GM(1,1) with a two-stage super-efficiency slacks-based measure (SBM) model, to forecast and assess the efficiencies of 18 EMSs. The GM(1,1) was first used to forecast future data of EMSs, and then the two-stage super-efficiency SBM model was used to measure the marketability and profitability efficiencies for an EMU in two stages. The results build a ‘past-current-future’ view on the two efficiencies for each EMS. In addition, the profitability efficiency can help justify the reasonability of marketability efficiency. Our results showed that Hon Hai tops the rankings in both profitability and marketability efficiencies. These results also provided information about relative efficiencies of these EMSs, which helps EMS managers and investors to make better decisions.