Operational digitalization and operating performance an analysis of Taiwan's social work industry

This study employs the stochastic frontier production function and heteroscedasticity corrected least squares to assess the impact of operational digitalization on technical efficiency and financial performance for Taiwan's social work industry. Major empirical results are as follows. (1) Technical efficiency in Taiwan's social work industry is averaged at 0.36 in 2006 and substantially rises to 0.86 in 2011, showing a significant reduction in the gap of resource allocation within the industry. (2) Operational digitalization improves technical inefficiency and financial performance.(3)Location and market structure have significant impacts on financial performance. (4) Senior and disabled services have better performance among all social work organizations.