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A Model Constructed to Evaluate Sustainable Operation and Development of State-Owned Enterprises after Restructuring

Author

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  • Li-Hsing Ho

    (Program of Technology Management, Chung Hua University, Hsinchu 30041, Taiwan)

  • Chen-Cheng Tsai

    (Program of Technology Management, Chung Hua University, Hsinchu 30041, Taiwan)

Abstract

A state-owned enterprise (SOE) is a mechanism by which market stability is achieved through government intervention. As economic freedom intensifies, most SOEs still have a rigid personnel system, unsound financial structure, and high product costs, along with poor management and operating losses, making them financial burdens. This study uses grey relational analysis and a Boston Consulting Group matrix to develop a sustainable management and development model for enterprises. The 13 business units of the Taiwan Sugar Corporation (Tainan, Taiwan) created through diversification were evaluated to determine if they have led to new competitiveness. The findings reveal that only two of the business units—land development and property management—have justified their operations, while the other 11 business units have brought no benefits to the country. Overall, diversification has created a greater burden for the country.

Suggested Citation

  • Li-Hsing Ho & Chen-Cheng Tsai, 2018. "A Model Constructed to Evaluate Sustainable Operation and Development of State-Owned Enterprises after Restructuring," Sustainability, MDPI, vol. 10(7), pages 1-11, July.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2354-:d:156580
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    References listed on IDEAS

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    Cited by:

    1. Che-Wei Chang, 2022. "Supply chain movement risk in the sneaker industry: an empirical study," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1073-1092, June.
    2. Jarosław Kaczmarek & Konrad Kolegowicz & Wojciech Szymla, 2022. "Restructuring of the Coal Mining Industry and the Challenges of Energy Transition in Poland (1990–2020)," Energies, MDPI, vol. 15(10), pages 1-48, May.
    3. Jarosław Kaczmarek, 2022. "The Balance of Outlays and Effects of Restructuring Hard Coal Mining Companies in Terms of Energy Policy of Poland PEP 2040," Energies, MDPI, vol. 15(5), pages 1-30, March.

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