The Effect of Innovation Strategies on the Business Performance of Global Semiconductor Firms

Abstract

Innovation strategies form the bedrock of sustainable business development in semiconductor firms. Using dynamic network data envelopment analysis (DN-DEA), the performance of the main global semiconductor firms during 2015 to 2019 was evaluated and the effects of intangible assets within their innovation strategies were explored. Operating efficiency (OPE) was found to be greater than R&D efficiency (RDE), and the average overall efficiency of Asian firms was found to be higher than that of American & European (AMEU) firms. A low intangible asset efficiency (ISE) indicates greater operating risks (2017 showed the highest value and 2015 the lowest). Establishing four regions, Region A showed innovation ability, but lacked business performance. Region B showed lack of both progress and operating performance. Region C showed good innovation ability and good operating performance. Region D showed innovation ability, but lack of progress. Thus, innovation achievements and intangible assets are key indicators of global semiconductor companies’ business sustainability.