Abstract

Information technology (IT) firms are facing ever-increasing competition and challenges in today’s globalized economy, and especially, firms in the advanced emerging market need to focus on improving their performance in order to remain highly competitive to survive. According to the business process of firms and IFRS (international financial reporting standards), this study applies an alternative data envelopment analysis (DEA) technique to explore the financing and business performance, and identify the benchmarks of 50 listed IT firms in Taiwan. A managerial decision-making matrix is constructed based on the derived financing and business efficiencies. The result shows that the firm’s efficiency and the firm’s market value are highly relevant. The proposed method and the results provide managers with an insight into the efficiency of the individual business processes of IT firms, and it can be applied to more precisely assess industrial benchmarks.

Key words: Data envelopment analysis (DEA), financing performance, business performance, managerial decision-making matrix.