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Utilizing Data Envelopment Analysis (DEA), this study examines the relative operational efficiency and critical effective factor of 19 companies over a period between 1998-2000 in global Electronics Manufacturing Service (EMS) industry, and gives performance improvement suggestions to inefficient companies. In this study, there are 4 input variables－COGS、SG&A、Numbers of Employee、Fixed Asset and 2 output variables－Income before Taxes、Gross Income.
Efficiency/Profitability Matrix is used to identify each company’s attribution and market position. We try to explain the relationship between Efficiency Value and Return On Asset, providing suggestions to the companies located at each quadrant. Input/Output Slacks become the basis to monitor the inefficient companies and Group Analysis to benchmark the best practice company.
In this research, we also examine the influence of Merge and Acquisition (M&A) activities on Tier 1 manufacturers in EMS industry. The study shows that the critical effective factors are Fixed Asset and Number of Employee. M&A proactiveness has some influence on Pure Technical Efficiency but negative impact on Scale Efficiency. We believe that the post-integrations of M&A activities have significant impact on efficiency.
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