Query: INTELLECTUAL CAPITAL AND PERFORMANCE IN THE SEMICONDUCTOR INDUSTRY

Candidate papers:

abstract: This paper researches a method of rating competitiveness involving the estimation of the performance of semiconductor firms through Malmquist productivity index (MPI) and metafrontier Malmquist productivity index (MMPI) Regressions are used to find the relationship between intellectual capital and performance. Overall, technological innovations contribute to the improvement in the integrated circuit (IC) design sub industry while increases in efficient production allow the IC foundry sub industry and the IC packaging and testing sub industry to maintain position. The regression results show human capital was critical to technological innovation while relational capital was important to efficient production.
author_names: Kuo-Cheng Kuo

Wen-Min Lu

Grace Chang
title: INTELLECTUAL CAPITAL AND PERFORMANCE IN THE SEMICONDUCTOR INDUSTRY
venue: The Singapore Economic Review
year: 2019

abstract: This study utilises the partial least squares method to establish a causal model depicting the relationship between the disclosure of intellectual capital, accounting performance and market valuation with evidence from Taiwan's semiconductor industry. Our results show that accounting performance, mandatory disclosure of intellectual capital performance and voluntary disclosure of intellectual capital have direct effects on market valuation. These factors also indirectly affect market valuation through the cause effect interrelationship with one another. Among the indirect relations, the mandatory disclosure of intellectual capital performance is the most fundamental factor which positively affects accounting performance and voluntary disclosure of intellectual capital and then further affects market valuation. The result provides implications for practice for the financial reporting and management of intellectual capital. In essence, the voluntary disclosure of major intellectual capital and the proper management of leading intellectual capital is valuable to market valuation in Taiwan's semiconductor industry.
author_names: Wen Ying Wang

Chingfu Chang
title: The effect of disclosure of intellectual capital and accounting performance on market valuation: evidence from Taiwan's semiconductor industry
year: 2008

abstract: This study builds an integrated theoretical model to investigate the impact of intellectual capital on business performance and examines the relationships among elements of intellectual capital. The performance measures include both past and expectation oriented performance indicators, i.e. both accounting and market based performance factors. The partial least squares (PLS) approach is applied to examine the Taiwan semiconductor industry. The empirical results show that intellectual capital does affect performance and each intellectual capital element not only directly influences performance, but also indirectly affects performance through the cause and effect relationship between elements. Human capital, the most fundamental element, positively affects both innovation capital and process capital; innovation capital has impact on process capital which, in turn, affects customer capital; and then customer capital ultimately affects business performance. From the perspective of performance management for a semiconductor company, the accumulation and improvement of lagged elements may be facilitated through appropriate management of leading intellectual capital elements. Furthermore, based on the proposed cause and effect model, relevant intellectual capital elements can be identified to effectively enhance business performance.
author_names: Wen-Ying Wang

Chingfu Chang
title: The Impacts of Intellectual Capital on Performance: An Empirical Investigation of the Taiwan Semiconductor Industry
year: 2004

title: The Effect of Intellectual Capital and Accounting Performance on Market Valuation: Evidence from Taiwan's Semiconductor Industry
year: 2006

abstract: This study draws on human capital, knowledge based view, and competitive dynamics literature to explore the role of entrepreneurial team's intellectual capital in new ventures ability to apply competitor specific human capital of its members. In particular, we argue that entrepreneurial team's intellectual capital is determined by their potential absorptive capacity, CEO's functional background, and shared team specific experiences of the entrepreneurial team. By utilizing a multi year panel of new IPO firms from the U.S. semiconductor industry between the periods of 1995 2010, the results of this study show that entrepreneurial team's intellectual capital plays a key role in determining their ability to disseminate and apply competitor specific human capital. Moreover, the results show that potential absorptive capacity, CEO's functional background, and shared team specific experiences of the entrepreneurial team moderate the relationship between CSD and CSI human capital and IPO performance.
author_names: Tapan Seth

Jaegul Lee

Amanuel Tekleab
title: Competitor Specific Human Capital IPO Performance: Entrepreneurial Team's Intellectual Capital
year: 2015

abstract: Abstract The commercial semiconductor industry is characterized by fierce competition, large fluctuations in demand, increasing performance, and falling prices. Defense electronics has become a miniscule part of the semiconductor industry (less than 1% but is essential to national security. However, U.S. commercial and defense semiconductor production is losing ground. The industry faces a number of challenges, including: rising capital costs, rapidly evolving technology, future workforce shortages, increasing offshore design and production, infringement of intellectual property rights, and ineffective export controls that hinder U.S. global competitiveness. Furthermore, the defense electronics industry faces significant issues associated with commercial off the shelf components and diminishing manufacturing sources. It is prudent for the U.S. government to recognize the risks of a declining U.S. microelectronics design and production capability, and to plan a course of action to mitigate the emerging risks to national security.
author_names: Michael E Bonheim

Gregory Burns

G Hoffer

Diana Keys

Valentyna V Kovalenko

Alan Maitland

William C Marks

Andrew Marotta

Neal McMahon

Stanley Specht
title: Electronics Industry Study Report: Semiconductors and Defense Electronics
year: 2003

abstract: In the knowledge economy ear, the value of a firm cannot be evaluated merely by the tangible assets because the company usually creates its value from the intangible assets. This study uses a structural equation model to explore the relationship between the Taiwan semiconductor industry intellectual capitals (including human capital, process capital, innovation capital and customer capital) and enterprise financial performance. The research findings indicate that human capital, process capital, innovation capital and customer capital have a significantly positive correlation with and a direct influential effect on intellectual capitals. Among them, the influence of human capital to corporate performance is the greatest. Moreover, human capital also promotes the growth of innovation and custom capital. Intellectual capital are an important indicator for measuring corporate value in the future. Managers are suggested to control and manipulate intellectual capitals, so as to increase business economic benefit, improve business competitive advantages and create shareholder value.
title: Zhi Hui Zi Ben De Heng Liang Ji Qi Dui Qi Ye Ji Xiao De Ying Xiang Zhi Yan Jiu Yi Tai Wan Shang Shi (Gui )Ban Dao Ti Chan Ye Wei Li
year: 2009

abstract: Performance evaluation is more than a quantitative concept but should also take industrial characteristics into account in order to form an accurate evaluation. In the past, evaluations of the operational performance of knowledge based industries have missed out a significant factor, which is intellectual capital (IC) By adopting data envelopment analysis (DEA) a multiple objective decision making method, this study aims to construct an efficiency evaluation model for the Taiwanese digital content industry based on the perspective of IC. The empirical results suggest that the scale of the digital content companies does play an important role in influencing the operating efficiency. The firms have a small amount of capital can still attain optimal efficiency, from the perspective of IC. In addition, human resource capital and customer capital are the most significant influential factors that deserve digital content firms' attention. It is suggested that enterprises in the digital content industries should focus more on managing their IC. DEA can provide the semiconductor firms' operations with insights into resource allocation and competitive advantage as well as help with strategic decision making.
author_names: Chia-Chin Chang

Shiu-Wan Hung

Sin-Yi Huang
title: Evaluating the operational performance of knowledge based industries: the perspective of intellectual capital
year: 2013

abstract: Despite many previous studies, the causal relationship among intellectual property rights (IPR) protection, innovation and economic growth remains ambiguous. Focusing on the differential effects of stronger IPR on industries, we suggest four causal paths from IPR through R&D to economic performance. Using firm level panel data in semiconductor, pharmaceutical and shipbuilding industries in Korea, we find that effective causal paths vary not only by industry but by firm size. Stronger IPR are beneficial to R&D intensive industries where large domestic firms have strong R&D and IPR capabilities, but have no impact on globalized industries. On the other hand, stronger IPR are detrimental to industries and to small and medium enterprises (SMEs) characterized by limited resources. Thus, to boost innovation and economic growth, IPR policies need to be customized to industries as well as SMEs. Universally strong IPR policies are likely to discourage innovation and growth, causing some industries to suffer.
author_names: Kyung-In Cho

Changseok Kim

Juneseuk Shin
title: Differential effects of intellectual property rights on innovation and economic performance: A cross industry investigation
year: 2015

abstract: Given the large investment and prevalence of knowledge management (KM) in organizations, it has become important to analyze the effects of KM activities on organizational performances. A theoretical framework is proposed to investigate the impact of KM activities on innovation capabilities in the IT service industry. This study considers KM activities as the major determinant that enhances absorptive capacity. KM activities enhance employees'ability to obtain external knowledge, resulting in increasing intellectual capital. Thus, this study proposes that absorptive capacity plays a mediating role between KM activities and innovation capability. Additionally, this study investigates the key antecedents of KM activities that promote employees' knowledge sharing. Based on prior studies on KM, this study posits KM team activities and top manager support as KM activities. The proposed research model was tested by using survey data collected from 556 employees in the IT service industry. PLS (partial least squares) was employed for the analysis of the data. The findings of this study showed that KM activities and absorptive capabilities play a significant role in enhancing service innovation and process innovation in the IT service industry. The results also shed light on the mediating role of absorptive capacity between KM activities and innovation capability. Moreover, both KM team activities and top manager support serve as the salient antecedents of promoting employees' knowledge sharing.
author_names: Yong Sauk Hau

In-Ku Han

Lee Hee Seok
title: Linking Knowledge Management Activities to Innovation Capability Focused on IT Service Industry
year: 2010