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The Impact of Operational Digitalization and Intangible Asset Investment on Technical Efficiency and Financial Performance of Taiwa's Social Work Industry

Author

Listed:
  • Ching-Yu Chen

    (Department of International Business, Tunghai University, Taiwan)

  • Jwu-Rong Lin

    (Department of International Business, Tunghai University, Taiwan)

  • Chun-Ju Liu

    (Department of Accounting, Tunghai University, Taiwan)

Abstract

This study establishes a stochastic frontier model and regression equations to assess the impact of operational digitalization and intangible asset investment on technical efficiency and financial performance. Taiwan’s census data on the social work industry is utilized to conduct empirical studies. The study’s contributions include sustained evidence that (1) operational digitalization and intangible asset investment are positively correlated with technical efficiency and financial performance and, (2) that they influence financial performance through a mediating effect rather than a direct effect. Furthermore, we show that the phenomenon of the information technology productivity paradox does not exist in this industry. Lastly, the study reveals that public social work services, even with greater resources, show poorer financial performance than private organizations.

Suggested Citation

  • Ching-Yu Chen & Jwu-Rong Lin & Chun-Ju Liu, 2018. "The Impact of Operational Digitalization and Intangible Asset Investment on Technical Efficiency and Financial Performance of Taiwa's Social Work Industry," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 14(2), pages 147-171, August.
    • Handle: RePEc:jec:journl:v:14:y:2018:i:2:p:147-171
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    References listed on IDEAS

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    Cited by:

    1. Jin-Chi Hsieh, 2023. "The Effect of Innovation Strategies on the Business Performance of Global Semiconductor Firms," SAGE Open, , vol. 13(4), pages 21582440231, October.

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    More about this item

    Keywords

    social work industry; operational digitalization; intangible asset; operating performance; stochastic frontier production function;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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