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Sustainability Assessment of Taiwan’s Semiconductor Industry: A New Hybrid Model Using Combined Analytic Hierarchy Process and Two-Stage Additive Network Data Envelopment Analysis

Author

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  • Fengyi Lin

    (Department of Business Management, National Taipei University of Technology, No. 1, Sec. 3, Chung-hsiao E. Road, Taipei 106, Taiwan)

  • Sheng-Wei Lin

    (Ph.D. Program in Management, College of Management, National Taipei University of Technology, No. 1, Sec. 3, Chung-hsiao E. Road, Taipei 106, Taiwan)

  • Wen-Min Lu

    (Department of Financial Management, National Defense University, No. 70, Section 2, Zhongyang North Road, Beitou, Taipei 112, Taiwan)

Abstract

Sustainable development has become the biggest concern of the semiconductor industry, which plays a vital role not only in technology breakthroughs, but also by serving as an enabler for sustainability. This study combines Analytic Hierarchy Process (AHP) and additive network Data Envelopment Analysis (DEA) to measure the sustainable performance which are derived from business growth stage and energy utilization stage through the parametric linear program. Meanwhile, this method makes up the disadvantage of the weighting technique used additive decomposition approach to the two-stage network and avoids biasing toward the second stage. The findings demonstrate that Taiwan’s semiconductor manufacturing sector has exhibited a steady increase in its overall trend of sustainability performance. According to the stage-level performance results, the performance of business growth is better than energy utilization. However, the changing trend of overall sustainability performance is through a steady increase from environmental efficiency and not from economic efficiency.

Suggested Citation

  • Fengyi Lin & Sheng-Wei Lin & Wen-Min Lu, 2018. "Sustainability Assessment of Taiwan’s Semiconductor Industry: A New Hybrid Model Using Combined Analytic Hierarchy Process and Two-Stage Additive Network Data Envelopment Analysis," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4070-:d:181011
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