The Impact of Operational Digitalization and Intangible Asset Investment on Technical Efficiency and Financial Performance of Taiwa's Social Work Industry

Ching-Yu Chen, Jwu-Rong Lin () and Chun-Ju Liu
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Ching-Yu Chen: Department of International Business, Tunghai University, Taiwan
Jwu-Rong Lin: Department of International Business, Tunghai University, Taiwan
Chun-Ju Liu: Department of Accounting, Tunghai University, Taiwan

Journal of Economics and Management, 2018, vol. 14, issue 2, 147-171

Abstract: This study establishes a stochastic frontier model and regression equations to assess the impact of operational digitalization and intangible asset investment on technical efficiency and financial performance. Taiwan’s census data on the social work industry is utilized to conduct empirical studies. The study’s contributions include sustained evidence that (1) operational digitalization and intangible asset investment are positively correlated with technical efficiency and financial performance and, (2) that they influence financial performance through a mediating effect rather than a direct effect. Furthermore, we show that the phenomenon of the information technology productivity paradox does not exist in this industry. Lastly, the study reveals that public social work services, even with greater resources, show poorer financial performance than private organizations.

Keywords: social work industry; operational digitalization; intangible asset; operating performance; stochastic frontier production function (search for similar items in EconPapers)
JEL-codes: C51 I12 M41 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jec:journl:v:14:y:2018:i:2:p:147-171

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