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Does the asset-light business model create value? A panel data stochastic frontier approach for the global semiconductor industry

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  • Guangshun Qiao

    (School of Finance and Trade, Wenzhou Business College, Wenzhou, 325035, China)

Abstract

This paper applies a panel data stochastic frontier approach to investigate the impacts of different business models in operating efficiencies in the global semiconductor industry. The efficiency scores are linked with the financial ratios and specified by cumulative probit distribution function, cumulative logit distribution function, and the Gumbel function respectively after disentangling the heterogeneity by the within transformation. The estimates by the nonlinear least squares technique indicate that the asset-light fabless companies have relatively higher efficiency scores among the different operating models in the global semiconductor industry.

Suggested Citation

  • Guangshun Qiao, 2021. "Does the asset-light business model create value? A panel data stochastic frontier approach for the global semiconductor industry," Economics Bulletin, AccessEcon, vol. 41(3), pages 1125-1138.
    • Handle: RePEc:ebl:ecbull:eb-20-00967
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    asset-light business model; vertical specialization; semiconductor industry; stochastic frontier analysis; operating efficiency;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • D2 - Microeconomics - - Production and Organizations

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