Evaluating the dynamic performances of business groups from the carry-over perspective: A case study of Taiwan׳s semiconductor industry

• We evaluate the performances of Taiwan׳s semiconductor industry using dynamic DEA.
• Dynamic operating performances lead to more accurate efficiency estimation.
• Firms within a business group are more efficient than non-business group ones.
• Companies with high level scopes operate better than those with low level scopes.

This study evaluates the dynamic operating performances of Taiwan׳s semiconductor industry from 2006 to 2012 by using the dynamic DEA, a technique based on the perspective of inter-period carry-over in accounting. The industry׳s various characteristics are investigated to determine their relationships to the semiconductor industry׳s efficiency. The following empirical results are found: companies within a business group are more efficient on average than ones under a non-business group; while integrated circuit (IC) design companies are more efficient than others, companies with high level scopes generally operate better than those with low level scopes. The potential applications and strengths of using DEA to assess the semiconductor industry are also highlighted.