Intellectual capital and university performance in Taiwan

Assessing university performance is an important yet complex issue. Knowing whether policy is effective in achieving its goal of advancing teaching and research is critical. Furthermore, at the level of implementation, it is necessary to understand if university resource allocation is sufficiently efficient for delivering expected results. To achieve this insight, this study utilizes a two-stage data envelopment analysis to evaluate the cost and teaching and research efficiencies of public universities in Taiwan. Additionally, this paper also employs a truncated-regression to discuss whether intellectual capital affects the operating efficiency of universities. The results demonstrate that the universities are much better at handling cost efficiencies than teaching and research efficiencies. The regression analysis indicates that intellectual capital does play an important role in influencing teaching and research efficiency. Finally, the conceptual roadmap to performance improvement strategies, which helps the manager and/or authorities to improve their operating efficiencies, also is presented.