Abstract
This study measures the unified (i.e., operational and environmental) performance of semiconductor firms in the world by using Data Envelopment Analysis (DEA) environmental assessment. With its promising and expanding electronic applications, many industrial nations have supported the semiconductor industry under their strategic plans, and numerous firms are involved in the global value chain. Drawing on the proposed DEA-based environmental (sustainability) assessment, which uses two disposability criteria (i.e., natural and managerial), this study first compute the unified efficiency scores of semiconductor firms. Then, this study explores how corporate age, business model, and location influence the efficiency scores by employing Tobit regressions and t-tests. The empirical implications obtained from this research indicate that overall, the semiconductor firms look for their economic achievements but are not paying enough attention to environmental sustainability. Corporate age and business model are statistically related with their operational performance measures whereas corporate location is related with their environmental ones.
Highlights
As a brain of electronic products, semiconductors play a major role in the digital economy by performing logical operations, controlling electric current, and digitizing and storing data
We focused on the methodological aspects of the Data Envelopment Analysis (DEA) environmental assessment along with its application on the semiconductor industry
There have been publications on the applications of DEA to the semiconductor industry. They have focused on the operational performance of semiconductor firms with limited geographical coverages and insufficient considerations of their ages and business models
Summary
As a brain of electronic products, semiconductors (or integrated circuits) play a major role in the digital economy by performing logical operations, controlling electric current, and digitizing and storing data. Purpose of this study: We apply DEA for assessing the performance of firms in the semiconductor industry, from the perspective of environmental sustainability. It is important to note that while some previous studies have conducted such evaluations, this research is distinct from them from the following four perspectives: (a) First, we measure operational and environmental performance by employing the DEA environmental assessment, which has become a novel approach to the semiconductor industry. (c) Third, we consider the dynamic evolution of the semiconductor industry into account in the performance assessment by comparing companies’ age and two different business models (IDM vs fabless–foundry).
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