IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v278y2024ics092552732400286x.html
   My bibliography  Save this article

The impact of big fund on the operational efficiency of semiconductor companies: Corporate social responsibility as a non-economic output

Author

Listed:
  • Yao, Xin
  • Zhao, Jiajia

Abstract

This study contributes to research on the total factor operational efficiency of the semiconductor company considering corporate social responsibility (CSR) by proposing a novel integer-valued nonparametric frontier method. This method adopts an endogenous directional distance function, which first selects the benchmark and then endogenously determines the directional vector. Avoiding the issue of non-integer slack adjustment increases the convenience of formulating incentive plans and calculating efficiency. We apply this method to the input–output data of 185 listed Chinese semiconductor companies from 2010 to 2022, considering integer-valued CSR as non-economic output. Global Malmquist productivity index analysis shows that the average total factor operational efficiency of companies that received investment from the National Integrated Circuit Industry Investment Fund (Big Fund) increased by 6.9%. Using the econometric technique, we verify that the total factor operational efficiency of semiconductor companies receiving Big Fund investment increased by 0.084 compared to those without Big Fund investment. Heterogeneity analysis showed that the effect of Big Fund was more significant in improving the total factor operational efficiency of state-owned, new, and non-integrated circuit semiconductor companies, implying the necessity of purposeful investment policies for the Big Fund.

Suggested Citation

  • Yao, Xin & Zhao, Jiajia, 2024. "The impact of big fund on the operational efficiency of semiconductor companies: Corporate social responsibility as a non-economic output," International Journal of Production Economics, Elsevier, vol. 278(C).
    • Handle: RePEc:eee:proeco:v:278:y:2024:i:c:s092552732400286x
    DOI: 10.1016/j.ijpe.2024.109429
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552732400286X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2024.109429?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter Bogetoft & Jens Hougaard, 1999. "Efficiency Evaluations Based on Potential (Non-Proportional) Improvements," Journal of Productivity Analysis, Springer, vol. 12(3), pages 233-247, November.
    2. Agrell, Per J. & Bogetoft, Peter, 2017. "Regulatory Benchmarking: Models, Analyses and Applications," Data Envelopment Analysis Journal, now publishers, vol. 3(1-2), pages 49-91, November.
    3. S C Ray, 2008. "The directional distance function and measurement of super-efficiency: an application to airlines data," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(6), pages 788-797, June.
    4. Simar, Léopold & Vanhems, Anne, 2012. "Probabilistic characterization of directional distances and their robust versions," Journal of Econometrics, Elsevier, vol. 166(2), pages 342-354.
    5. PER AGRELL & Peter Bogetoft & Jørgen Tind, 2005. "DEA and Dynamic Yardstick Competition in Scandinavian Electricity Distribution," Journal of Productivity Analysis, Springer, vol. 23(2), pages 173-201, May.
    6. Robert G. Chambers & Teresa Serra, 2018. "The social dimension of firm performance: a data envelopment approach," Empirical Economics, Springer, vol. 54(1), pages 189-206, February.
    7. Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
    8. Nollet, Joscha & Filis, George & Mitrokostas, Evangelos, 2016. "Corporate social responsibility and financial performance: A non-linear and disaggregated approach," Economic Modelling, Elsevier, vol. 52(PB), pages 400-407.
    9. R. Färe & S. Grosskopf & G. Whittaker, 2013. "Directional output distance functions: endogenous directions based on exogenous normalization constraints," Journal of Productivity Analysis, Springer, vol. 40(3), pages 267-269, December.
    10. Kuosmanen, Timo & Matin, Reza Kazemi, 2009. "Theory of integer-valued data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 192(2), pages 658-667, January.
    11. Timo Kuosmanen & Abolfazl Keshvari & Reza Kazemi Matin, 2015. "Discrete and Integer Valued Inputs and Outputs in Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 4, pages 67-103, Springer.
    12. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, March.
    13. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    14. Bryan W. Husted & José De Jesus Salazar, 2006. "Taking Friedman Seriously: Maximizing Profits and Social Performance," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 75-91, January.
    15. N. Craig Smith & David Rönnegard, 2016. "Shareholder Primacy, Corporate Social Responsibility, and the Role of Business Schools," Journal of Business Ethics, Springer, vol. 134(3), pages 463-478, March.
    16. Donald S. Siegel & Donald F. Vitaliano, 2007. "An Empirical Analysis of the Strategic Use of Corporate Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 773-792, September.
    17. Govindan, Kannan & Kilic, Merve & Uyar, Ali & Karaman, Abdullah S., 2021. "Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation," International Journal of Production Economics, Elsevier, vol. 231(C).
    18. Cinzia Daraio & Léopold Simar, 2016. "Efficiency and benchmarking with directional distances: a data-driven approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(7), pages 928-944, July.
    19. R. G. Chambers & Y. Chung & R. Färe, 1998. "Profit, Directional Distance Functions, and Nerlovian Efficiency," Journal of Optimization Theory and Applications, Springer, vol. 98(2), pages 351-364, August.
    20. Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2006. "Corporate Social Responsibility: Strategic Implications," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 1-18, January.
    21. Marc-Arthur Diaye, 2023. "How does CSR affect workers’ compensation? An approach by the theory of incentive [Comment la RSE affecte-t-elle l’indemnisation des accidents du travail ? Une approche par la théorie de l'incitati," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-04676837, HAL.
    22. Sergiy D. Dmytriyev & R. Edward Freeman & Jacob Hörisch, 2021. "The Relationship between Stakeholder Theory and Corporate Social Responsibility: Differences, Similarities, and Implications for Social Issues in Management," Journal of Management Studies, Wiley Blackwell, vol. 58(6), pages 1441-1470, September.
    23. Ramzan, Muhammad & Amin, Muhammad & Abbas, Muhammad, 2021. "How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan," Research in International Business and Finance, Elsevier, vol. 55(C).
    24. Diaye, Marc-Arthur & Lasram, Hejer & Pekovic, Sanja, 2023. "How does CSR affect workers’ compensation? An approach by the theory of incentives," International Journal of Production Economics, Elsevier, vol. 260(C).
    25. MCarmen Martínez‐Victoria & Alfons Oude Lansink, 2024. "Risk and return efficiency of manufacturing firms: Integrating corporate social responsibility performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3735-3744, September.
    26. Marc-Arthur Diaye, 2023. "How does CSR affect workers’ compensation? An approach by the theory of incentive [Comment la RSE affecte-t-elle l’indemnisation des accidents du travail ? Une approche par la théorie de l'incitati," Post-Print hal-04676837, HAL.
    27. Aparicio, Juan & Kapelko, Magdalena & Ortiz, Lidia, 2023. "Enhancing the measurement of firm inefficiency accounting for corporate social responsibility: A dynamic data envelopment analysis fuzzy approach," European Journal of Operational Research, Elsevier, vol. 306(2), pages 986-997.
    28. Zhang, Mengdi & Shen, Qiao & Zhao, Zhiheng & Wang, Shuaian & Huang, George Q., 2024. "Commitment or rent-seeking? Government incentive policies for ESG reporting in sustainable e-commerce logistics," International Journal of Production Economics, Elsevier, vol. 268(C).
    29. Magdalena Kapelko & Alfons Oude Lansink & Encarna Guillamon‐Saorin, 2021. "Corporate social responsibility and dynamic productivity change in the US food and beverage manufacturing industry," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 286-305, April.
    30. Christoph Trumpp & Thomas Guenther, 2017. "Too Little or too much? Exploring U‐shaped Relationships between Corporate Environmental Performance and Corporate Financial Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 49-68, January.
    31. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    32. Du, Juan & Chen, Chien-Ming & Chen, Yao & Cook, Wade D. & Zhu, Joe, 2012. "Additive super-efficiency in integer-valued data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 218(1), pages 186-192.
    33. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    34. Jin, Justin Yiqiang & Kanagaretnam, Kiridaran & Lobo, Gerald J. & Mathieu, Robert, 2017. "Social capital and bank stability," Journal of Financial Stability, Elsevier, vol. 32(C), pages 99-114.
    35. Constantin Belu & Cristiana Manescu, 2013. "Strategic corporate social responsibility and economic performance," Applied Economics, Taylor & Francis Journals, vol. 45(19), pages 2751-2764, July.
    36. Mette Asmild & Jens Hougaard & Dorte Kronborg & Hans Kvist, 2003. "Measuring Inefficiency Via Potential Improvements," Journal of Productivity Analysis, Springer, vol. 19(1), pages 59-76, January.
    37. Soohun Kim & Aaron Yoon, 2023. "Analyzing Active Fund Managers’ Commitment to ESG: Evidence from the United Nations Principles for Responsible Investment," Management Science, INFORMS, vol. 69(2), pages 741-758, February.
    38. Milton Friedman, 2007. "The Social Responsibility of Business Is to Increase Its Profits," Springer Books, in: Walther Ch Zimmerli & Markus Holzinger & Klaus Richter (ed.), Corporate Ethics and Corporate Governance, pages 173-178, Springer.
    39. Azmi, Wajahat & Hassan, M. Kabir & Houston, Reza & Karim, Mohammad Sydul, 2021. "ESG activities and banking performance: International evidence from emerging economies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
    40. Mansour Zarrin, 2023. "A mixed-integer slacks-based measure data envelopment analysis for efficiency measuring of German university hospitals," Health Care Management Science, Springer, vol. 26(1), pages 138-160, March.
    41. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juan Aparicio & Magdalena Kapelko, 2019. "Enhancing the Measurement of Composite Indicators of Corporate Social Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 807-826, July.
    2. Malin Song & Jianlin Wang & Jiajia Zhao & Tomas Baležentis & Zhiyang Shen, 2020. "Production and safety efficiency evaluation in Chinese coal mines: accident deaths as undesirable output," Annals of Operations Research, Springer, vol. 291(1), pages 827-845, August.
    3. Aparicio, Juan & Cordero, Jose M. & Gonzalez, Martin & Lopez-Espin, Jose J., 2018. "Using non-radial DEA to assess school efficiency in a cross-country perspective: An empirical analysis of OECD countries," Omega, Elsevier, vol. 79(C), pages 9-20.
    4. Jie Wu & Zhixiang Zhou, 2015. "A mixed-objective integer DEA model," Annals of Operations Research, Springer, vol. 228(1), pages 81-95, May.
    5. Halická, Margaréta & Trnovská, Mária & Černý, Aleš, 2025. "On indication, strict monotonicity, and efficiency of projections in a general class of path-based data envelopment analysis models," European Journal of Operational Research, Elsevier, vol. 320(1), pages 175-187.
    6. Arabmaldar, Aliasghar & Sahoo, Biresh K. & Ghiyasi, Mojtaba, 2023. "A generalized robust data envelopment analysis model based on directional distance function," European Journal of Operational Research, Elsevier, vol. 311(2), pages 617-632.
    7. Jesus Pastor & C. Lovell & Juan Aparicio, 2012. "Families of linear efficiency programs based on Debreu’s loss function," Journal of Productivity Analysis, Springer, vol. 38(2), pages 109-120, October.
    8. Fangqing Wei & Junfei Chu & Jiayun Song & Feng Yang, 2019. "A cross-bargaining game approach for direction selection in the directional distance function," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(3), pages 787-807, September.
    9. Rafael Benítez & Vicente Coll-Serrano & Vicente J. Bolós, 2021. "deaR-Shiny: An Interactive Web App for Data Envelopment Analysis," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
    10. Tao, Xiangyang & An, Qingxian & Goh, Mark, 2024. "Plant capacity utilization with piecewise Cobb-Douglas technology: Definition and interpretation," European Journal of Operational Research, Elsevier, vol. 316(3), pages 1034-1043.
    11. Magdalena Kapelko & Alfons Oude Lansink & Encarna Guillamon‐Saorin, 2021. "Corporate social responsibility and dynamic productivity change in the US food and beverage manufacturing industry," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 286-305, April.
    12. Aparicio, Juan & Kapelko, Magdalena & Ortiz, Lidia, 2023. "Enhancing the measurement of firm inefficiency accounting for corporate social responsibility: A dynamic data envelopment analysis fuzzy approach," European Journal of Operational Research, Elsevier, vol. 306(2), pages 986-997.
    13. Michael Kopel, 2021. "CSR leadership, spillovers, and first-mover advantage," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 44(2), pages 489-505, December.
    14. Encarna Guillamon-Saorin & Magdalena Kapelko & Spiro E. Stefanou, 2018. "Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach," Sustainability, MDPI, vol. 10(7), pages 1-26, July.
    15. Dirk Boehe & Luciano Barin Cruz, 2010. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Journal of Business Ethics, Springer, vol. 91(2), pages 325-346, February.
    16. Cherchye, L. & Post, G.T., 2001. "Methodological Advances in Dea," ERIM Report Series Research in Management ERS-2001-53-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Tianqun Xu & Ping Gao & Qian Yu & Debin Fang, 2017. "An Improved Eco-Efficiency Analysis Framework Based on Slacks-Based Measure Method," Sustainability, MDPI, vol. 9(6), pages 1-21, June.
    18. Simar, Leopold & Wilson, Paul, 2018. "Technical, Allocative and Overall Efficiency: Inference and Hypothesis Testing," LIDAM Discussion Papers ISBA 2018018, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    19. Chambers, Robert G., 2024. "Numeraire choice, shadow profit, and inefficiency measurement," European Journal of Operational Research, Elsevier, vol. 319(2), pages 658-668.
    20. Daraio, Cinzia & Simar, Leopold & Wilson, Paul, 2019. "Quality and its impact on efficiency," LIDAM Discussion Papers ISBA 2019004, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:278:y:2024:i:c:s092552732400286x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.