Applying DEA on Operating Performance Analysis: Comparison Between Urban and Rural Operating Areas of a Case Telecom Company

This study aims to discuss the operating performance of a case telecom company in Taiwan by comparing the entire region, urban and rural operating areas. The data envelopment analysis (DEA) and Tobit model are employed and performed on 23 operating divisions from 2008 to 2010 to analyze the correlation between the accounts receivable collection and the overall operating performance. The results show that the average technical efficiency (TE) of all operating divisions is 84.2%. The urban operating divisions have a higher efficiency value than the rural ones. Evidence implies that the collection of accounts receivables and the operating performance are positively correlated.