Optimization on the Performance of Technology Companies with Super Efficiency Data Envelopment Analysis Model

Lam Weng Hoe, Lam Weng Siew and Liew Kah Fai

Financial analysis is important in the evaluation on the financial performance of the companies. The financial performance of the companies can be measured in efficiency score which is an important criterion for the organizations to sustain in the long-term development and growth. In Data Envelopment Analysis (DEA) model, the efficiency of the company is defined as the ratio of sum-weighted outputs to sum-weighted inputs. The objective of this study is to propose a financial ratio based super-efficiency DEA model to measure and compare the efficiency of listed technology companies in Malaysia. Besides that, this study also aims to identify and rank the technology companies in Malaysia with the super-efficiency DEA model which is an optimization technique. The results of this study show that GTRONIC, INARI, KESM, UNISEM and VITROX are ranked as efficient technology companies in Malaysia. This indicates that these efficient companies manage to fully utilize the resources optimally in generating the maximum outputs. This study is significant because it helps to identify and rank the efficient technology companies which can serve as benchmarks to other inefficient companies for further improvement. Moreover, it is a pioneer study of proposing super-efficiency DEA model with financial ratio to measure and compare the efficiency of technology companies in Malaysia.

Volume 12 | 04-Special Issue

Pages: 1424-1433

DOI: 10.5373/JARDCS/V12SP4/20201621