Dynamic performance evaluation of Taiwan's food industry: ESG insights and strategic implications

Abstract

This study aims to evaluate the innovation, operational, and sustainability performance of Taiwan’s food industry, addressing the critical need for resource optimization, efficiency enhancement, and sustainable development. Utilizing the Range Directional Measure Network Data Envelopment Analysis (RDM-NDEA) model, combined with truncated regression and multidimensional scaling, the research identifies key ESG variables influencing performance. The study observes a sample of 120 companies in Taiwan's food industry over the period 2017–2021. Findings reveal that operational performance consistently surpasses both sustainability and innovation performance, highlighting the need for managers to focus on innovation-driven strategies. Key ESG issues include energy and water management, and data security under the environmental pillar, as well as product quality, safety, and employee health and safety under the social pillar. These findings provide significant implications for managers and policymakers, offering actionable insights to address performance bottlenecks, enhance competitive advantages, and promote industrial upgrading. The study’s methodology and results contribute to the growing discourse on ESG integration, providing a robust framework for performance evaluation and supporting sustainable development in the food industry.