Abstract

Numerous groups have created various kinds of company rankings which can change ordinary companies into celebrity firms. Such company rankings have the power to deeply affect the decision-making process of both internal and external stakeholders of a company. Typically, a company ranking is produced in response to a special concern, and uses a specific evaluation method or weighting. Since, however, a truly robust and effective decision-making process should not depend solely on a company ranking, this paper suggests using Data Envelopment Analysis (DEA) and Grey Entropy (GE) scoring method to conduct supplementary analyses. These two suggested methods do not require the use of subjective weightings. As an application of the proposed methodology, an empirical study of the Taiwan InfoTech 100 is presented. The proposed solution can be further extended and developed as business models. For example, Google or Yahoo might conduct both a DEA-based ranking and a GE-based ranking, “DEA-InfoTech 100” and “GE-InfoTech 100”, as supplementary analyses to be compared with other available company rankings.

Key words: Company ranking, data envelopment analysis, grey entropy.