Exploring the influence of marketing system and human capital on operating efficiency of the life insurance industry based on the balanced scorecard perspective
Authors: Jen-Jen Tseng; Tzu-Chuan Kao; Yung-Ching Ho;
Journal:Chia Da Management Review. Dec. 2005, 25(1): 179-204.
Keywords: Balance Scorecard; Technical Efficiency; Human Capital; Marketing System
Abstract:
Traditional efficiency measurement systems focus on only financial indicators. Therefore, Kaplan and Norton (1992) argue senior mangers
should make decisions not only on financial indicators but also non-financial indicators and address the balance scorecard (BSC)
perspective. Therefore, we draft BSC perspective to measure the operating efficiency for life insurance industry. This paper uses two-stage
technique to estimate the operating efficiency of the life insurance industry and to analyze the influence factors of the operating
efficiency. First, the paper adopts the Data Envelopment Analysis (DEA) to analyze the efficiency of operating performance by financial and
non-financial indicators of BSC. The main purpose of this paper is building evaluate indicators that can estimate the operating efficiency.
Second, select the Tobit regression to examine the decision of marketing system and the human capital of salesman whether influence the
operating efficiency. The technical efficiencies are estimated for Taiwan's life insurance industries through the output orientation DEA
using secondary source data taken from 1999 to 2003. The empirical results of this paper indicate both efficiency change and technological
change were declining for last five years. Furthermore, both of technical efficiency and scale efficiency were influenced by the decision
of marketing system and the education of salesman.