Research Article
BibTex RIS Cite
Year 2017, Volume: 6 Issue: 3, 246 - 253, 30.09.2017
https://doi.org/10.17261/Pressacademia.2017.684

Abstract

References

  • Banker, R., Charnes, A., & Cooper, W. 1984. “Some models for estimating technical and scale inefficiencies in data envelopment analysis”. The Institute of Management Sciences, vol. 9, pp. 1078-1092.
  • Berger, A.N. & Humphrey, D.B. 1997. “Efficiency of financial intuitions: International survey and directions for future research”. European Journal of Operational Research, vol. 98, no. 2, pp. 175-212.
  • Bilişik, M.T. 2015. “Productivity research in turkish banking sector by data envelopment analysis”. Academic View Magazine, vol. 49.
  • Bilişik., M.T. 2015. “Analysis of developing and fast growing countries of the agriculture sector with Malmquist total factor productivity”. Trakya University Journal of Social Sciences, vol. 17, no. 2, pp.77-97.
  • Çakır, S., & Perçin 2011. “Activity measurement in public sugar factories: DEA - Malmquist MPI application”. Anadolu University Journal of Social Sciences, vol. 12, no. 4, pp. 49-64.
  • Çetin, A. 2006. “Determination of the efficiency levels of turkish textile sector and turkish textile firms”. Süleyman Demirel University, İ.İ.B.F., Business Administration. Afyon Kocatepe University, İ.İ.B.F. Magazine, pp. 255-278.
  • Charnes, A., Cooper, W., Lewin, Y., & Seiford, L. 1994. “Data Envelopment Analysis: Theory, Methodology, and Application”. Boston: Springer Science + Business Media, LLC.
  • Charnes, A., Cooper, W., & Rhodes, E. 1978. “Measuring the efficiency of decision making units”. European Journal of Operational Research, pp. 429-444.
  • Çınarer, S., Aksoy, Y. Z., & Dulkan, F. 1989. Industrial Congress Reports (420). TMMOB, Chamber of Mechanical Engineers.
  • Cingi, S., & Tarım, A. 2000. “Performance measurement for the turkish bank system, a DEA-Malmquist total factor productivity index application”. Turkish Banks Association Research Series, vol. 01, pp. 1-34.
  • Cooper, W., & Seiford, L. T. 2007. “Data Envelopment Analysis, A Comprehensive Text with Models Applications, References and DEASolver Software”. Springer Science+Business Media, LLC.
  • Cooper, W., Seiford, L., & Tone, K. 2000. “Data Envelopment Analysis A Comprehensive Text with Models, Applications, References and DEA-Solver”. Kluwer Academic Publisher.
  • Cummins, J. D., & Weiss, M. A. 1998. “Analyzing Firm Performance in the Insurance Industry Using Frontier Efficiency Methods”. Wharton (92-22), pp. 4.
  • Doğaka, T.C. Eastern Mediterranean Development Agency. 2014. Iron and Steel Sector Report. http://www.dogaka.gov.tr. Sectoral research reports, pp. 6; 12.
  • Farrell, M. 1957. “The Measurement of Productive Efficiency”. Journal of the Statistical Society, vol. 120, no. 3, pp. 253-290.
  • Fried, H., Knox Lovell, C., & Schmidt, S. 2008. “The Measurement of Productive Efficiency and Productivity Growth”. Oxford University Press.
  • İnan, A.2000. “Measuring Bank Efficiency and Efficiency in Banking in Low Inflation Process”. Bankers Magazine, vol. 34, pp. 83.
  • Kadıoğlu, E. 2006. “Factors determining the profitability of intermediate institutions in Turkey. “ Master Thesis. Hacettepe University Social Sciences Institute.
  • Karabulut, T., Okka, Ö., & Başel, H. 2006. “Individual performance-based salary and productivity relation: Example application in banking sector”. Selçuk University Karaman İ.İ.B.F. Magazine, vol. 11, pp. 104-118.
  • Karaemir, Ç. 2013. “Activity Analysis in Training Centers, Performance Analysis Using DEA”. Master Thesis. Ankara University. Social Sciences Institute.
  • Kaya, A., & Gülhan, Ü. 2010. “The effects of the global financial crisis on the efficiency and performance levels of companies: 2008 Financial Crisis Case”. Istanbul University. Economics Faculty. Econometrics and Statistics Journal, vol. 11, pp. 61-89.
  • Kaya, A., Öztürk, M., & Özer, A. 2010. “Metal goods, Machinery and Equipment Construction Measurement of Efficiency by Data Envelopment Analysis of Sectors”. Atatürk University. Journal of Economics and Administrative Sciences, vol. 24, no. 1, pp. 129-147.
  • Kecek, G. 2010. “Data Envelopment Analysis / Theory and Application Example”. Ankara: Political Bookstore.
  • Koçak, H., & Çilingirtürk, A.M. 2011. “Comparative analysis of the efficiency in the use of resources in EU countries and candidate countries”. Istanbul University. Journal of Business Administration, vol. 40, no. 2, pp. 166-175.
  • Kula, V., Kandemir, T., & Özdemir, L. 2009. “DEA Malmquist total factor productivity measure: A survey on cement companies in Stock Exchange Istanbul”. İİBF Journal of Social and Economic Research, p. 188-202.
  • Lorcu, F. 2008. “Data envelopment analysis (DEA) to evaluate the health activities of Turkey and European Union countries”. PhD Thesis. Istanbul University. Social Sciences Institute, pp. 340.
  • T.C. Ekonomi Bakanlığı. 2016. “Iron-Steel, Iron-Steel Goods Sector”. Mine, Metal and Forest Products Department.
  • Thanassoulis, E. 2001. “Introduction to the theory and application of data envelopment analysis: a foundation text with integrated software”. KluwerAcademic Publishers, 281s.
  • Turgutlu, E., Kök, R., & Adnan, K. 2007. “Efficiency in turkish insurance companies: Deterministic and chance constrained data envelopment analysis”. Economics Business and Finance, vol. 22, pp. 251; 8.
  • Ulucan, A. 2002. “Data envelopment analysis approach measuring the efficiences of ISO 500 companies: Evaluating with different input output components and returns to scale”. Ankara University SBF Magazine, 57-2, pp. 186-202.
  • Wang, Q., & Cui, J.-C. 2010. “A Resource Allocation Mode Based on DEA Models and Elasticity Analysis”. The Ninth International Symposium on Operations Research and Its Applications , pp. 167-174.
  • Yolalan, O. R. 1993. “Within companies, relative effectiveness measurement”. National Productivity Center, Publication No: 483, Ankara, 96p. (MPM) Publications.

EFFICIENCY RESEARCH WITH TOTAL FACTOR PRODUCTIVITY AND DETERMINATION OF IMPROVEMENT TARGETS

Year 2017, Volume: 6 Issue: 3, 246 - 253, 30.09.2017
https://doi.org/10.17261/Pressacademia.2017.684

Abstract

Purpose
In today's competitive world,
when financial crises and economic stagnation are experienced, the effective
and efficient use of resources has become an important and necessary condition
for companies and country economies. The iron-steel industry, which provides a
great deal to the country's economies, also provides raw materials to a large
number of industries. In the iron-steel industry, where our country has limited
resources and high dependency on external sources, it is necessary to determine
whether the resources are used correctly 
to evaluate the efficiency and productivity and to determine the
appropriate improvement targets. 

Methodology
In this study, the activities of 9 iron and steel companies listed in
Istanbul stock market and operating in the Turkish iron and steel industry have
been examined using output oriented Data Envelopment Analysis (DEA) which is a
non-parametric approach and Malmquist productivity index (MPI). In the study, 3
input factors have been number of employees, fixed assets and current assets.
On the other hand, 2 output factors have been revenue and gross profit . The
required data sets were obtained from 2014 and 2015 financial statements of the
relevant companies.

Findings – Technical
efficiencies, pure efficiencies, scale efficiencies and Malmquist indexes for
each company have been found. According to the results obtained, decision
making units which are efficient and inefficient were determined. By the way,
the reasons for Malmquist Productivity Index, in terms of technical change and
technological cahange have been explained.







Conclusion – Iron-steel companies determined to be unproductive may use these results
to find out the detailed reasons preventing them to be productive. Since
activities are directly proportional to the use of resources, organizations
need to reduce input or take measures to increase their output. Increasing the
production of high value added products or increasing the production can
increase the income. Especially 
in view of stainless steel, special steel and seamless pipe products,
which are insufficient in Turkey, an increase should have been in export and
imports. With plans and strategies to be implemented in this way, both the cost
of inputs can be reduced and the output can be increased.
  

References

  • Banker, R., Charnes, A., & Cooper, W. 1984. “Some models for estimating technical and scale inefficiencies in data envelopment analysis”. The Institute of Management Sciences, vol. 9, pp. 1078-1092.
  • Berger, A.N. & Humphrey, D.B. 1997. “Efficiency of financial intuitions: International survey and directions for future research”. European Journal of Operational Research, vol. 98, no. 2, pp. 175-212.
  • Bilişik, M.T. 2015. “Productivity research in turkish banking sector by data envelopment analysis”. Academic View Magazine, vol. 49.
  • Bilişik., M.T. 2015. “Analysis of developing and fast growing countries of the agriculture sector with Malmquist total factor productivity”. Trakya University Journal of Social Sciences, vol. 17, no. 2, pp.77-97.
  • Çakır, S., & Perçin 2011. “Activity measurement in public sugar factories: DEA - Malmquist MPI application”. Anadolu University Journal of Social Sciences, vol. 12, no. 4, pp. 49-64.
  • Çetin, A. 2006. “Determination of the efficiency levels of turkish textile sector and turkish textile firms”. Süleyman Demirel University, İ.İ.B.F., Business Administration. Afyon Kocatepe University, İ.İ.B.F. Magazine, pp. 255-278.
  • Charnes, A., Cooper, W., Lewin, Y., & Seiford, L. 1994. “Data Envelopment Analysis: Theory, Methodology, and Application”. Boston: Springer Science + Business Media, LLC.
  • Charnes, A., Cooper, W., & Rhodes, E. 1978. “Measuring the efficiency of decision making units”. European Journal of Operational Research, pp. 429-444.
  • Çınarer, S., Aksoy, Y. Z., & Dulkan, F. 1989. Industrial Congress Reports (420). TMMOB, Chamber of Mechanical Engineers.
  • Cingi, S., & Tarım, A. 2000. “Performance measurement for the turkish bank system, a DEA-Malmquist total factor productivity index application”. Turkish Banks Association Research Series, vol. 01, pp. 1-34.
  • Cooper, W., & Seiford, L. T. 2007. “Data Envelopment Analysis, A Comprehensive Text with Models Applications, References and DEASolver Software”. Springer Science+Business Media, LLC.
  • Cooper, W., Seiford, L., & Tone, K. 2000. “Data Envelopment Analysis A Comprehensive Text with Models, Applications, References and DEA-Solver”. Kluwer Academic Publisher.
  • Cummins, J. D., & Weiss, M. A. 1998. “Analyzing Firm Performance in the Insurance Industry Using Frontier Efficiency Methods”. Wharton (92-22), pp. 4.
  • Doğaka, T.C. Eastern Mediterranean Development Agency. 2014. Iron and Steel Sector Report. http://www.dogaka.gov.tr. Sectoral research reports, pp. 6; 12.
  • Farrell, M. 1957. “The Measurement of Productive Efficiency”. Journal of the Statistical Society, vol. 120, no. 3, pp. 253-290.
  • Fried, H., Knox Lovell, C., & Schmidt, S. 2008. “The Measurement of Productive Efficiency and Productivity Growth”. Oxford University Press.
  • İnan, A.2000. “Measuring Bank Efficiency and Efficiency in Banking in Low Inflation Process”. Bankers Magazine, vol. 34, pp. 83.
  • Kadıoğlu, E. 2006. “Factors determining the profitability of intermediate institutions in Turkey. “ Master Thesis. Hacettepe University Social Sciences Institute.
  • Karabulut, T., Okka, Ö., & Başel, H. 2006. “Individual performance-based salary and productivity relation: Example application in banking sector”. Selçuk University Karaman İ.İ.B.F. Magazine, vol. 11, pp. 104-118.
  • Karaemir, Ç. 2013. “Activity Analysis in Training Centers, Performance Analysis Using DEA”. Master Thesis. Ankara University. Social Sciences Institute.
  • Kaya, A., & Gülhan, Ü. 2010. “The effects of the global financial crisis on the efficiency and performance levels of companies: 2008 Financial Crisis Case”. Istanbul University. Economics Faculty. Econometrics and Statistics Journal, vol. 11, pp. 61-89.
  • Kaya, A., Öztürk, M., & Özer, A. 2010. “Metal goods, Machinery and Equipment Construction Measurement of Efficiency by Data Envelopment Analysis of Sectors”. Atatürk University. Journal of Economics and Administrative Sciences, vol. 24, no. 1, pp. 129-147.
  • Kecek, G. 2010. “Data Envelopment Analysis / Theory and Application Example”. Ankara: Political Bookstore.
  • Koçak, H., & Çilingirtürk, A.M. 2011. “Comparative analysis of the efficiency in the use of resources in EU countries and candidate countries”. Istanbul University. Journal of Business Administration, vol. 40, no. 2, pp. 166-175.
  • Kula, V., Kandemir, T., & Özdemir, L. 2009. “DEA Malmquist total factor productivity measure: A survey on cement companies in Stock Exchange Istanbul”. İİBF Journal of Social and Economic Research, p. 188-202.
  • Lorcu, F. 2008. “Data envelopment analysis (DEA) to evaluate the health activities of Turkey and European Union countries”. PhD Thesis. Istanbul University. Social Sciences Institute, pp. 340.
  • T.C. Ekonomi Bakanlığı. 2016. “Iron-Steel, Iron-Steel Goods Sector”. Mine, Metal and Forest Products Department.
  • Thanassoulis, E. 2001. “Introduction to the theory and application of data envelopment analysis: a foundation text with integrated software”. KluwerAcademic Publishers, 281s.
  • Turgutlu, E., Kök, R., & Adnan, K. 2007. “Efficiency in turkish insurance companies: Deterministic and chance constrained data envelopment analysis”. Economics Business and Finance, vol. 22, pp. 251; 8.
  • Ulucan, A. 2002. “Data envelopment analysis approach measuring the efficiences of ISO 500 companies: Evaluating with different input output components and returns to scale”. Ankara University SBF Magazine, 57-2, pp. 186-202.
  • Wang, Q., & Cui, J.-C. 2010. “A Resource Allocation Mode Based on DEA Models and Elasticity Analysis”. The Ninth International Symposium on Operations Research and Its Applications , pp. 167-174.
  • Yolalan, O. R. 1993. “Within companies, relative effectiveness measurement”. National Productivity Center, Publication No: 483, Ankara, 96p. (MPM) Publications.
There are 32 citations in total.

Details

Journal Section Articles
Authors

Murat Taha Bilisik

Gulizar Ozkaya Elibol This is me

Publication Date September 30, 2017
Published in Issue Year 2017 Volume: 6 Issue: 3

Cite

APA Bilisik, M. T., & Ozkaya Elibol, G. (2017). EFFICIENCY RESEARCH WITH TOTAL FACTOR PRODUCTIVITY AND DETERMINATION OF IMPROVEMENT TARGETS. Journal of Business Economics and Finance, 6(3), 246-253. https://doi.org/10.17261/Pressacademia.2017.684

Journal of Business, Economics and Finance (JBEF) is a scientific, academic, double blind peer-reviewed, quarterly and open-access journal. The publication language is English. The journal publishes four issues a year. The issuing months are March, June, September and December. The journal aims to provide a research source for all practitioners, policy makers and researchers working in the areas of business, economics and finance. The Editor of JBEF invites all manuscripts that that cover theoretical and/or applied researches on topics related to the interest areas of the Journal. JBEF charges no submission or publication fee.



Ethics Policy - JBEF applies the standards of Committee on Publication Ethics (COPE). JBEF is committed to the academic community ensuring ethics and quality of manuscripts in publications. Plagiarism is strictly forbidden and the manuscripts found to be plagiarized will not be accepted or if published will be removed from the publication. Authors must certify that their manuscripts are their original work. Plagiarism, duplicate, data fabrication and redundant publications are forbidden. The manuscripts are subject to plagiarism check by iThenticate or similar. All manuscript submissions must provide a similarity report (up to 15% excluding quotes, bibliography, abstract, method).


Open Access - All research articles published in PressAcademia Journals are fully open access; immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited. Open access is a property of individual works, not necessarily journals or publishers. Community standards, rather than copyright law, will continue to provide the mechanism for enforcement of proper attribution and responsible use of the published work, as they do now.