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Managerial and program inefficiency for European meat manufacturing firms: A dynamic multidirectional inefficiency analysis approach

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  • Magdalena Kapelko

    (Wroclaw University of Economics)

  • Alfons Oude Lansink

    (Wageningen University)

Abstract

This paper proposes a dynamic multidirectional inefficiency analysis approach within the context of Data Envelopment Analysis to measuring input- and investment-specific managerial and program inefficiency for groups of firms characterized by different technologies. Dynamic managerial inefficiency refers to the distance to the firms’ group-specific dynamic frontier of best practices, and dynamic program inefficiency measures the difference between the group-specific dynamic frontier and the pooled dynamic frontier. The empirical application focuses on panel data of large meat processing firms in Eastern, Western and Southern Europe over the period 2005–2012. The results show that Eastern European firms have the highest dynamic managerial inefficiency for all inputs, but have the smallest values for dynamic program inefficiency. Western European firms perform worst in terms of program inefficiency for all inputs, while Southern European firms are the best with regard to dynamic managerial inefficiency. The results also reveal that regardless the dynamic inefficiency dimension considered, investments is the most inefficient input, followed by labor, and materials.

Suggested Citation

  • Magdalena Kapelko & Alfons Oude Lansink, 2018. "Managerial and program inefficiency for European meat manufacturing firms: A dynamic multidirectional inefficiency analysis approach," Journal of Productivity Analysis, Springer, vol. 49(1), pages 25-36, February.
    • Handle: RePEc:kap:jproda:v:49:y:2018:i:1:d:10.1007_s11123-017-0519-1
    DOI: 10.1007/s11123-017-0519-1
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    Cited by:

    1. Magdalena Kapelko & Alfons Oude Lansink, 2020. "Dynamic Cost Inefficiency of the European Union Meat Processing Firms," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 760-777, September.

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    More about this item

    Keywords

    Data Envelopment Analysis; Program inefficiency; Managerial inefficiency; Dynamic inefficiency; Multi-directional inefficiency; Meat processing industry;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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