Foreign Direct Investment and Intellectual Capital- Using Three Stages Data Envelopment Analysis

• Main Authors: Huang Tien-Chun, 黃添俊
• Other Authors: Chuang Wen-Bin
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/16166632417553209967

碩士 === 國立暨南國際大學 === 國際企業學系 === 94 === By reviewing these decades, economic development of Taiwan has changed a lot. Taiwan became from a fall-behind and developing country to newly industry and developed country by cheaper wages, land cost, and a large number of foreign investments which brought spillover effect of technology transferring to firms in Taiwan. Among these firms, manufacturing sector plays an important role for Taiwan’s success. Therefore, other developing countries want to know what the successful factors are. Recently, Because of some factors resulted from macro environment, they caused firms in Taiwan to invest their production location in foreign countries; especially for these SMEs which faced high cost and worse operating environment. Besides, nowadays business models and industry structures are changing, the knowledge-based industry will be the key direction that firms in Taiwan need to improve and reinforce. As the competitive advantages of these industries are coming from intangible assets, intellectual capital is getting more and more discussion by scholars and researchers. Tangible assets such as land, equipment, and factories are not the core competitive advantages any more. Intangible assets and knowledge creation are the key point to success in the future. Generally speaking, intellectual capital is that all intangible assets and knowledge creation come from firms. However, traditional accounting principles can’t completely reveal the gap between market value and book value for firms. That’s why many scholars are getting involved and devoted themselves into this field. They just wonder if firms can realize what is intellectual capital and how to measure and strength it, manager can effectively control intellectual capital to help firms put their resources into intangible assets to increase competitive advantages and operating performance of firms. Thus, in this research, we used the three stages Data Envelopment Analysis method by referring to Fried, Lovell, Schmidt and Yaisawarng(2002) thesis and took electronic industry in Taiwan as our samples to measure intellectual capital. Data resources are coming from factory amendment data in Taiwan which are produced by Economic Departments and research period is 2000 year. The purpose of this thesis is to help firms understand intellectual capital will be affected by what kinds of factors and the relationship between production efficiency. As well as the difference between prior and post adjustment after adjusting from stage two. In order to assist firms put their resource into intangible assets that will boost competitive advantages and intellectual capital due to the improvement of production efficiency. When observed the impact between intellectual capital and environmental variables, we added foreign direct investment variable to examine how this variable affected firms’ intellectual capital. In other words, will intellectual capital be affected by foreign direct investment. The empirical results from this research can be divided into these points as follows： 1、The ineffective reason in first stage is due to pure technology ineffective, that is to say, firms can’t effectively apply inputs so that human management and arrangement are not suitable and wasteful. Thus, productive efficiency and performance are affected as well as intellectual capital. Besides, the ineffective reasons in this stage could be other factors such as: environmental and statistic errors. Therefore, by using SFA method to exclude environmental and statistic errors, we can get effective values in third stage. The result in this stage reveals that ineffective reasons are not due to input but firms didn’t produce under scale efficiency. Sum up, when firms measure intellectual capital, they should consider other factors which would affect intellectual capital in order to reflect real performance and intellectual capital well. 2、In this research , we can found out that age, location (north, central, south) have a positive and statistic impact on these three industries which means that would decrease intellectual capital. Size, KL, and RD have a negative and statistic impact on these three industries which means that would increase intellectual capital. However, FDI has different explanations on these three industries as follows; For 26 and 27 industries, FDI would increase intellectual capital. The result is the same as Noorbakhsh(2001)、Ritchie(2002)、Michie(2002)、徐明曦(2003) which means FDI can increase intellectual capital such as human capital and performance in host country but it need firms to corporate with host country. Further more, firms will invest countries that are abundant in intellectual capital in order to increase competitive advantages. For 28 industry, FDI would decrease intellectual capital. We found that FDI has different explanations in these three industries due to different industries and firm characteristics. Besides, the result would be affected by some other reasons such as policy in host country, self factor requirement, industry trait and intellectual capital. What is more, most firms in Taiwan are SMEs. Theirs requirements, ability, skill, resource are less than big firms so that they will not invest before think twice although FDI can brings benefits for firms and help them to overcome disadvantage factors in host country. Thus, firms need to value all kinds of factors such as investing location in order to choose the most suitable strategy.