Evaluation of the operating performance of Taiwanese machine tool industry with the dynamic network DEA model

Abstract

This study aims to evaluate the performance of the machine tool industry in Taiwan between 2010 and 2014 by using a dynamic network data envelopment analysis (DN-DEA) model. Taiwanese machine tool industry had an improvement in productivity from 2010 to 2014. Under the two-stage DEA model, we find that productivity in the production and market stage represent a rapid growth, and the productivity growth of the market stage is greater than that of the production stage. The overall productivity growth is mainly attributable to the market stage productivity growth and partially to the production stage productivity growth.