Business Efficiency Evaluation of Machine Tool Manufacturers by Data Envelopment Analysis (DEA): A Case Study of Taiwanese Listed Machine Tool Companies

Data envelopment analysis (DEA) is widely used to measure the business efficiency of many industries, among which Taiwanese machine tool industry well-known for its complete supply-chain system. Relying on DEA and Malmquist Productivity Index analyze listed manufacturers from 2018 2019, this study compared changes in their efficiencies productivities. According five change indicators Malmquist, only technical efficiency, pure scale overall posted some growth during research period, showing that whole actively improving striving achieve efficiency. However, total factor productivity declined slightly, indicating still makes more progress. Thus, companies should adjust inputs outputs improve production boundary The purposes are identify success factors excellent performance benchmarking decision-making unit efficient frontier results provide references formulating future strategies direction.