RESEARCHING THE EFFICIENCY AND FUNCTIONALITY OF BUSINESS SYSTEMS USING STATISTICAL AND DEA ANALYSES
RESEARCHING THE EFFICIENCY AND FUNCTIONALITY OF BUSINESS SYSTEMS USING STATISTICAL AND DEA ANALYSES
Author(s): Petar Kočović, Slobodan Šegrt, Maja AnđelkovićSubject(s): Economy, Business Economy / Management
Published by: Fakultet za poslovne studije i pravo
Keywords: business systems; DEA; DMU; CCR; BCC; CRS; VRS; SE; statistical tests; functionality; efficiency; composite indicators; production, productivity
Summary/Abstract: In this paper, the authors investigated aspects of whether DEA can shed light on relative DMU performance issues with identified, conceptually key input and output parameters and performance measures for representative DMUs of a business system. In this regard, the CCR and BCC models were applied at the level of representative examples. The CCR model is probably the most widely used in DEA analyses. It is also the most famous model based on the assumption of constant returns, which means that every feasible activity (k, i) implies the feasibility of activity (kt, it) for every positive number t. This model measures overall technical efficiency. The BCC model is used, in DEA, in the case of increasing or decreasing returns, when the change in the input variable is proportional (more or less) to the increase in output. This model measures purely technical efficiency (the efficiency measure is independent of business volume) by comparing the jth DMU unit only with units of similar size in a technical context. The authors were aware that an implicit assumption in DEA is that there necessarily exists some relationship between inputs and outputs. Companies or subsidiaries (DMUs) can show high input productivity and very successful managerial performance in organizing appropriate inputs in the relevant production processes. The situation is presented in which, when companies operate with constant returns to scale (CRS) throughout the observed period, it can be concluded that the size of the company is optimal. Specific research, related to surveys and tests, described in this paper, deals with the efficiency of DMU groups (constituent decision-making units within business systems or supply chains). There are aspects of economies of scale, allocative inefficiency and input reengineering in production systems (as well as analysis of changes in productivity, impact of key variables on productivity, efficiency and functionality) according to the adequacy of identified production and business functions of the company. The research results are presented in tabular and graphical form.
Journal: International Journal of Economics & Law
- Issue Year: 13/2023
- Issue No: 37
- Page Range: 91-116
- Page Count: 26
- Language: English