International acquisitions and efficiency and productivity of the Serbian cement industry

Purpose - This paper explores the impact of international acquisitions on the efficiency and productivity of the cement industry in an emerging economy. Design/methodology/approach - The data envelopment analysis (DEA) and Malmquist index (MI) are used to calculate the partial efficiency and productivity of individual inputs (materials, labour and fixed assets), as well as the total factor efficiency and productivity during the period 2000–2018. DEA and MI are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. In this paper we apply the input-oriented CCR DEA Window model. With respect to the level of analysis, data was collected from individual companies and then aggregated data at the industry level. Findings - The research results show that international acquisitions positively affect efficiency of the cement industry in the long term. Efficiency of capital is lower in the short period after acquisitions. Additionally, international acquisitions positively affect partial productivity, as well as total factor productivity of the cement industry. Practical implications - The results of the study may be significant for managers and policy makers to design appropriate strategies for the improvement of the cement industry performance over time. Originality/value - Research in emerging economies related to subject matter is limited, and this is one of the earliest research studies which explore change in efficiency and productivity at the level of Serbian cement industry.