This research investigates the impact of innovative capability and internationalization on firm performance. The innovative capability has become an important competitive advantage in recent decades. In addition, through the convenience of transportation and technology, internationalization has become more important to international trade. Consequently, these two issues are worth to investigate in. In this study, we used a “data-oriented” approach known as Data Envelopment Analysis (DEA), to evaluate the efficiency of Taiwanese listed semiconductor companies from the TEJ database during 2010 to 2015. The empirical evidence indicates that innovative capabilities and internationalization are significantly related to firm performance.
