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Measuring the relative efficiency of the food and drink industry in the chosen EU countries using the data envelopment analysis with missing data

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  • Margareta Gardijan

    (University of Zagreb)

  • Zrinka Lukač

    (University of Zagreb)

Abstract

The food and drink industry is one of the leading manufacturing sectors in the economies of many EU countries. However, when compared to other global food and drink producers, the EU food and drink industry has been facing a persistent decrease in competitiveness in past decades. In this paper, we analyse companies from the food and drink industry in the selected EU countries. The sample includes more than 6000 companies from the food industry and more than 1000 companies from the drink industry in the selected EU countries in the period from 2011 to 2015. Given the available financial data for the food and drink companies from the Amadeus database, we calculate their liquidity, leverage, activity and profitability ratios and evaluate their relative efficiency using multiple criteria. The efficiency is defined in terms of data envelopment analysis using financial ratios as inputs and outputs in the BCC output-oriented model. Findings reveal which countries have the greatest proportion of efficient companies and what the main areas of (in)efficiency for companies within each country are. The efficiency is analysed with regard to the size of the companies.

Suggested Citation

  • Margareta Gardijan & Zrinka Lukač, 2018. "Measuring the relative efficiency of the food and drink industry in the chosen EU countries using the data envelopment analysis with missing data," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(3), pages 695-713, September.
    • Handle: RePEc:spr:cejnor:v:26:y:2018:i:3:d:10.1007_s10100-018-0540-0
    DOI: 10.1007/s10100-018-0540-0
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    Cited by:

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    2. Gardijan Kedžo, Margareta & Lukač, Zrinka, 2021. "The financial efficiency of small food and drink producers across selected European Union countries using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 291(2), pages 586-600.
    3. Pinar Celikkol Geylani & Magdalena Kapelko & Spiro E. Stefanou, 2021. "Dynamic productivity change differences between global and non-global firms: a firm-level application to the U.S. food and beverage industries," Operational Research, Springer, vol. 21(2), pages 901-923, June.
    4. Marijana Zekić-Sušac & Rudolf Scitovski & Goran Lešaja, 2018. "CEJOR special issue of Croatian Operational Research Society," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(3), pages 531-534, September.
    5. Pei Fun Lee & Weng Siew Lam & Weng Hoe Lam, 2023. "Performance Evaluation of the Efficiency of Logistics Companies with Data Envelopment Analysis Model," Mathematics, MDPI, vol. 11(3), pages 1-15, January.

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