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Benchmarking The Operating Efficiency Of Global Telecommunication Firms

Author

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  • WEN-MIN LU

    (Department of Finance, National Defense University, Taipei 112, Taiwan)

  • SHIU-WAN HUNG

    (Department of Business Administration, National Central University, Tao-Yuan 320, Taiwan)

Abstract

The rapid development of modern information technology has led to fierce competition in today's telecommunication industry. Telecommunication firms' accountability demands that operating efficiency be measured, maximized, and benchmarked. This study proposes an alternative context-dependent data envelopment analysis (DEA) technique to explore the managerial performance and the benchmarks of 24 global leading telecom operators. The analysis measures the relative attractiveness and progress of global telecom operators on a specific performance level against operators exhibiting poorer and/or better performance. The set operators are grouped into different levels of efficiency frontiers. Each efficiency frontier on a specific performance level is then used as an evaluation context for the relative attractiveness and progress. The performance of the efficient telecoms changes as the inefficient telecoms change their performance. It is shown that the context-dependent DEA can be used to differentiate and benchmark the performance of efficient DMUs. These benchmarks may give a first guideline for performance improvement of global telecommunication operators.

Suggested Citation

  • Wen-Min Lu & Shiu-Wan Hung, 2008. "Benchmarking The Operating Efficiency Of Global Telecommunication Firms," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 737-750.
    • Handle: RePEc:wsi:ijitdm:v:07:y:2008:i:04:n:s0219622008003149
    DOI: 10.1142/S0219622008003149
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    Cited by:

    1. Yong Zha & Liang Liang, 2015. "Aggregated Ratio Analysis in DEA," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1285-1297, November.
    2. Bielov, Constantine & Mitomo, Hitoshi & Hämmäinen, Heikki, 2022. "Efficiency frontier of OECD MNOs: Multinational vs Domestic," Telecommunications Policy, Elsevier, vol. 46(5).
    3. Wen-Min Lu & Qian Long Kweh & Kai-Chu Yang, 2022. "Multiplicative efficiency aggregation to evaluate Taiwanese local auditing institutions performance," Annals of Operations Research, Springer, vol. 315(2), pages 1243-1262, August.
    4. Hung, Shiu-Wan & Wang, An-Pang, 2012. "Entrepreneurs with glamour? DEA performance characterization of high-tech and older-established industries," Economic Modelling, Elsevier, vol. 29(4), pages 1146-1153.

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