A Model Constructed to Evaluate Sustainable Operation and Development of State-Owned Enterprises after Restructuring

Li-Hsing Ho and Chen-Cheng Tsai
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Li-Hsing Ho: Program of Technology Management, Chung Hua University, Hsinchu 30041, Taiwan
Chen-Cheng Tsai: Program of Technology Management, Chung Hua University, Hsinchu 30041, Taiwan

Sustainability, 2018, vol. 10, issue 7, 1-11

Abstract: A state-owned enterprise (SOE) is a mechanism by which market stability is achieved through government intervention. As economic freedom intensifies, most SOEs still have a rigid personnel system, unsound financial structure, and high product costs, along with poor management and operating losses, making them financial burdens. This study uses grey relational analysis and a Boston Consulting Group matrix to develop a sustainable management and development model for enterprises. The 13 business units of the Taiwan Sugar Corporation (Tainan, Taiwan) created through diversification were evaluated to determine if they have led to new competitiveness. The findings reveal that only two of the business units—land development and property management—have justified their operations, while the other 11 business units have brought no benefits to the country. Overall, diversification has created a greater burden for the country.

Keywords: state-owned enterprise (SOE); performance evaluation; diversification management; grey relational analysis (GRA) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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