The association between technology development investment and production efficiency in Taiwan: using a stochastic frontier approach
Authors:Yu-Lin Chen; Chiu-Tien Tsai
Journal:Chia Da Management Review. Jun. 2005, 25(2): 211-233.
Keywords: IT Investment; Information Human Intensity; R&D Intensity; Technology Efficiency; Stochastic Frontier Approach
Abstract:
The purpose of this paper is to explore the impact of technology development investment (information technology (IT), research
and development (R&D) and information human) on production efficiency. Through the theoretic model inference and empirical
analysis of the stochastic frontier approach, our results show that information human intensity positively affects the
production efficiency. This implies that the acquisition of the information human is crucial for the future growth of the
enterprise in Taiwan, and this finding can provide some references to business decision and governance policy in enhancement
of production technology efficiency. Besides, we find that both IT and R&D investment are positively related to the
production technology efficiency. This indicates it would be benefit to the production technology efficiency of the overall
industry if the enterprise can improve the technology development investment, such as increase in IT investment of the
electronic industry and R&D investment of the other industry.