IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v133y2025ics0305048324002111.html
   My bibliography  Save this article

A New Integrated Approach for Evaluating Sustainable Development in the Electric Vehicle Sector

Author

Listed:
  • Lu, Wen-Min
  • Chou, Chien-Heng
  • Ting, Irene Wei Kiong
  • Liu, Shang-Ming

Abstract

This study develops an innovative value creation process for the electric vehicle (EV) industry. First, this study conducts data envelopment analysis to measure the innovation, operation, and market efficiency performance of the EV industry. Second, this study conducts bootstrapped truncated regression to explore the impact of environmental, social, and governance (ESG) factors on the performance of the EV industry. Third, this study uses the classification & regression tree (CART), random forest, and eXtreme gradient boosting (XGBoost) algorithms to assist managers in identifying the key predictive variables for further classification and prediction. Results reveal significant differences in innovation performance across five industry sectors, among which the charging pile system sector exhibits the highest average value, and the battery system sector exhibits the lowest average value. The truncated regression analysis shows that innovation performance in Taiwan's EV industry is significantly influenced by energy management, data security, employee information statistics, and control over equity and board seats. Corporate governance transparency positively impacts operational performance, while energy and water management enhance market performance, with product quality and safety having a negative effect on market performance. This study identifies the relative importance of the classification attribute variables based on the classification rules of the target attributes by conducting further analysis with the CART decision model and constructs an optimal prediction model.

Suggested Citation

  • Lu, Wen-Min & Chou, Chien-Heng & Ting, Irene Wei Kiong & Liu, Shang-Ming, 2025. "A New Integrated Approach for Evaluating Sustainable Development in the Electric Vehicle Sector," Omega, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:jomega:v:133:y:2025:i:c:s0305048324002111
    DOI: 10.1016/j.omega.2024.103247
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048324002111
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2024.103247?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. Xu, Jie & Huang, Yuping, 2022. "The short-term optimal resource allocation approach for electric vehicles and V2G service stations," Applied Energy, Elsevier, vol. 319(C).
    2. Lutsey, Nicholas & Sperling, Daniel, 2012. "Regulatory adaptation: Accommodating electric vehicles in a petroleum world," Energy Policy, Elsevier, vol. 45(C), pages 308-316.
    3. Kao, Chiang, 2009. "Efficiency decomposition in network data envelopment analysis: A relational model," European Journal of Operational Research, Elsevier, vol. 192(3), pages 949-962, February.
    4. Yang, Ann Shawing & Okada, Hiromu, 2019. "Corporate innovations as institutional anomie: Patent activities and financial performance of the international aerospace industry," Finance Research Letters, Elsevier, vol. 28(C), pages 328-336.
    5. Wang, Xinxin & Xu, Zeshui & Qin, Yong & Skare, Marinko, 2021. "Service networks for sustainable business: A dynamic evolution analysis over half a century," Journal of Business Research, Elsevier, vol. 136(C), pages 543-557.
    6. Coluccia, Daniela & Dabić, Marina & Del Giudice, Manlio & Fontana, Stefano & Solimene, Silvia, 2020. "R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective," Journal of Business Research, Elsevier, vol. 119(C), pages 259-271.
    7. Dan Daugaard & Ashley Ding, 2022. "Global Drivers for ESG Performance: The Body of Knowledge," Sustainability, MDPI, vol. 14(4), pages 1-21, February.
    8. H. Pierre Hsieh & Kuo‐Cheng Kuo & Minh‐Hieu Le & Wen‐Min Lu, 2021. "Exploring the cargo and eco‐efficiencies of international container shipping companies: A network‐based ranking approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 45-60, January.
    9. Chen, Yufeng & Ma, Yanbai, 2021. "Does green investment improve energy firm performance?," Energy Policy, Elsevier, vol. 153(C).
    10. Qian Long Kweh & Wen-Min Lu & Fengyi Lin & Yung-Jr Deng, 2022. "Impact of research and development tax credits on the innovation and operational efficiencies of Internet of things companies in Taiwan," Annals of Operations Research, Springer, vol. 315(2), pages 1217-1241, August.
    11. DasGupta, Ranjan, 2022. "Financial performance shortfall, ESG controversies, and ESG performance: Evidence from firms around the world," Finance Research Letters, Elsevier, vol. 46(PB).
    12. Zhang, Youlang & Li, Yan & Tao, Yibin & Ye, Jilei & Pan, Aiqiang & Li, Xinzhou & Liao, Qiangqiang & Wang, Zhiqin, 2020. "Performance assessment of retired EV battery modules for echelon use," Energy, Elsevier, vol. 193(C).
    13. Mario Calabrese & Antonio La Sala & Ryan Patrick Fuller & Antonio Laudando, 2021. "Digital Platform Ecosystems for Sustainable Innovation: Toward a New Meta-Organizational Model?," Administrative Sciences, MDPI, vol. 11(4), pages 1-14, October.
    14. Guan, JianCheng & Pang, Lanxin, 2017. "Industry specific effects on innovation performance in China," China Economic Review, Elsevier, vol. 44(C), pages 125-137.
    15. Amela Ajanovic, 2015. "The future of electric vehicles: prospects and impediments," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(6), pages 521-536, November.
    16. Alghamdi, OmarA. & Agag, Gomaa, 2024. "Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    17. Chunya Ren & Irene Wei Kiong Ting & Wen‐Min Lu & Qian Long Kweh, 2022. "Nonlinear effects of ESG on energy‐adjusted firm efficiency: Evidence from the stakeholder engagement of apple incorporated," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1231-1246, September.
    18. Tone, Kaoru & Tsutsui, Miki, 2009. "Network DEA: A slacks-based measure approach," European Journal of Operational Research, Elsevier, vol. 197(1), pages 243-252, August.
    19. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    20. Han, John & Jo, Gil S. & Kang, Jina, 2018. "Is high-quality knowledge always beneficial? Knowledge overlap and innovation performance in technological mergers and acquisitions," Journal of Management & Organization, Cambridge University Press, vol. 24(2), pages 258-278, March.
    21. Amela Ajanovic & Reinhard Haas, 2020. "On the economics and the future prospects of battery electric vehicles," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 10(6), pages 1151-1164, December.
    22. Bubeck, Steffen & Tomaschek, Jan & Fahl, Ulrich, 2016. "Perspectives of electric mobility: Total cost of ownership of electric vehicles in Germany," Transport Policy, Elsevier, vol. 50(C), pages 63-77.
    23. Ma-Lin Song & Ron Fisher & Jian-Lin Wang & Lian-Biao Cui, 2018. "Environmental performance evaluation with big data: theories and methods," Annals of Operations Research, Springer, vol. 270(1), pages 459-472, November.
    24. Meckling, Jonas & Nahm, Jonas, 2019. "The politics of technology bans: Industrial policy competition and green goals for the auto industry," Energy Policy, Elsevier, vol. 126(C), pages 470-479.
    25. Joachim Binam & Kalilou Sylla & Ibrahim Diarra & Gwendoline Nyambi, 2003. "Factors Affecting Technical Efficiency among Coffee Farmers in Côte d’Ivoire: Evidence from the Centre West Region," African Development Review, African Development Bank, vol. 15(1), pages 66-76.
    26. Wang, Chun-Hsien & Lu, Yung-Hsiang & Huang, Chin-Wei & Lee, Jun-Yen, 2013. "R&D, productivity, and market value: An empirical study from high-technology firms," Omega, Elsevier, vol. 41(1), pages 143-155.
    27. Patrick L. Brockett & Boaz Golany, 1996. "Using Rank Statistics for Determining Programmatic Efficiency Differences in Data Envelopment Analysis," Management Science, INFORMS, vol. 42(3), pages 466-472, March.
    28. J S Liu & W-M Lu, 2012. "Network-based method for ranking of efficient units in two-stage DEA models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(8), pages 1153-1164, August.
    29. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    30. Shoaib Aslam & Mohamed H. Elmagrhi & Ramiz Ur Rehman & Collins G. Ntim, 2021. "Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1655-1673, May.
    31. Chen, Zhiyao & Harford, Jarrad & Kamara, Avraham, 2019. "Operating Leverage, Profitability, and Capital Structure," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 54(1), pages 369-392, February.
    32. Turner, Hugh & Windle, Robert & Dresner, Martin, 2004. "North American containerport productivity: 1984-1997," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(4), pages 339-356, July.
    33. Cao, Jidi & Chen, Xin & Qiu, Rui & Hou, Shuhua, 2021. "Electric vehicle industry sustainable development with a stakeholder engagement system," Technology in Society, Elsevier, vol. 67(C).
    34. Chen-En Hou & Wen-Min Lu & Shiu-Wan Hung, 2019. "Does CSR matter? Influence of corporate social responsibility on corporate performance in the creative industry," Annals of Operations Research, Springer, vol. 278(1), pages 255-279, July.
    35. Balaji S. Chakravarthy, 1986. "Measuring strategic performance," Strategic Management Journal, Wiley Blackwell, vol. 7(5), pages 437-458, September.
    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. Hsiao-Yen Mao & Wen-Min Lu & Hsin-Yen Shieh, 2023. "Exploring the Influence of Environmental Investment on Multinational Enterprises’ Performance from the Sustainability and Marketability Efficiency Perspectives," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    2. Wanke, Peter F., 2013. "Physical infrastructure and shipment consolidation efficiency drivers in Brazilian ports: A two-stage network-DEA approach," Transport Policy, Elsevier, vol. 29(C), pages 145-153.
    3. Lu, Wen-Min & Wang, Wei-Kang & Hung, Shiu-Wan & Lu, En-Tzu, 2012. "The effects of corporate governance on airline performance: Production and marketing efficiency perspectives," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 529-544.
    4. Minh-Hieu Le & Wen-Min Lu & Qian Long Kweh, 2023. "The moderating effects of power distance on corporate social responsibility and multinational enterprises performance," Review of Managerial Science, Springer, vol. 17(7), pages 2503-2533, October.
    5. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    6. Ming-Fu Hsu & Ying-Shao Hsin & Fu-Jiing Shiue, 2022. "Business analytics for corporate risk management and performance improvement," Annals of Operations Research, Springer, vol. 315(2), pages 629-669, August.
    7. Shiu-Wan Hung & Kai-Chu Yang & Wen-Min Lu & Minh-Hieu Le, 2025. "A chance-constrained network DEA approach for evaluating medical service and quality efficiency: a case study of Taiwan," Health Care Management Science, Springer, vol. 28(1), pages 99-118, March.
    8. Kao, Chiang, 2017. "Efficiency measurement and frontier projection identification for general two-stage systems in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 261(2), pages 679-689.
    9. Zhang, Linyan & Chen, Kun, 2019. "Hierarchical network systems: An application to high-technology industry in China," Omega, Elsevier, vol. 82(C), pages 118-131.
    10. Joe Zhu, 2022. "DEA under big data: data enabled analytics and network data envelopment analysis," Annals of Operations Research, Springer, vol. 309(2), pages 761-783, February.
    11. Del Barrio-Tellado, María José & Gómez-Vega, Mafalda & Herrero-Prieto, Luis César, 2023. "Performance of cultural heritage institutions: A regional perspective," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    12. Tatiana Bencova & Andrea Bohacikova, 2022. "DEA in Performance Measurement of Two-Stage Processes: Comparative Overview of the Literature," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 111-129.
    13. Guan, Jiancheng & Chen, Kaihua, 2012. "Modeling the relative efficiency of national innovation systems," Research Policy, Elsevier, vol. 41(1), pages 102-115.
    14. Reza Feizabadi & Mehri Bagherian, 2023. "Identifying the Influential Factors in Increasing the Efficiency of Network Systems: A Mixed Binary Linear Programming," SN Operations Research Forum, Springer, vol. 4(4), pages 1-14, December.
    15. Qian Long Kweh & Wen-Min Lu & Kaoru Tone & Hsian-Ming Liu, 2024. "Evaluating the resource management and profitability efficiencies of US commercial banks from a dynamic network perspective," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-20, December.
    16. Sabri Boubaker & Tu D. Q. Le & Riadh Manita & Thanh Ngo, 2025. "The trade-off frontier for ESG and Sharpe ratio: a bootstrapped double-frontier data envelopment analysis," Annals of Operations Research, Springer, vol. 347(1), pages 717-741, April.
    17. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    18. Tavakoli, Ibrahim M. & Mostafaee, Amin, 2019. "Free disposal hull efficiency scores of units with network structures," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1027-1036.
    19. Wu, Yueh-Cheng & Wei Kiong Ting, Irene & Lu, Wen-Min & Nourani, Mohammad & Kweh, Qian Long, 2016. "The impact of earnings management on the performance of ASEAN banks," Economic Modelling, Elsevier, vol. 53(C), pages 156-165.
    20. Huang, Tai-Hsin & Lin, Chung-I & Wu, Ruei-Cian, 2019. "Assessing the marketing and investment efficiency of Taiwan’s life insurance firms under network structures," The Quarterly Review of Economics and Finance, Elsevier, vol. 71(C), pages 132-147.

    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:jomega:v:133:y:2025:i:c:s0305048324002111. 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/wps/find/journaldescription.cws_home/375/description#description .

    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.