Industry Performance Appraisal Using Improved MCDM for Next Generation of Taiwan

Abstract

It is critical for manufacturing sectors to improve maximum performance to foster a competitive advantage. This article aims to analyze how the manufacturing industry can promote its performance to achieve sustainable development. We embark performance evaluation on Taiwanese manufacturing sectors which have profound implications in the global manufacturing supply chain. This study collected public information and reliable data from the Industrial Technology Research Institute (ITRI) covering 12 Taiwanese manufacturing industries. Performance evaluation indicators consist of four inputs chosen from a set of six items, whereas one output is from a set of three items. The analysis from Data Envelopment Analysis (DEA) is conducted including CCR (Charnes, Cooper, & Rhodes) efficiency, BCC (Banker et al.) efficiency, A&P(Andersen and Petersen) efficiency, cross-efficiency and D&G(Doyle and Green) efficiency plus the VIKOR prioritization method to evaluate the 12 manufacturing industries in Taiwan. The comprehensive analysis and comparison results of this study show the sophisticated outcomes through the analysis of DEA and VIKOR. In another objective evaluation, the efficiency of DEA proves a certain correlation between the model and the measurement of the VIKOR method. The results indicate that Taiwan’s manufacturing industry is moving towards design innovation thinking towards the high value of its own brand, whereas the industries in China and South East Asia appear different. The results can provide the best practice to allow the international manufacturing industry to enjoy a resurgence after falling output and diminishing labor force.