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Analyzing greenhouse firm performance across different marketing channels

  • Lusine H. Aramyan

    (Social Sciences Group, Business Economics, Wageningen University, Wageningen, The Netherlands)

  • Christien J.M. Ondersteijn

    (Alfa-Accountants en Adviseurs, Gorinchem, The Netherlands)

  • Alfons G.J.M. Oude Lansink

    (Social Sciences Group, Business Economics, Wageningen University, Wageningen, The Netherlands)

  • Olaf van Kooten

    (Horticultural Production Chains Group, Plant Sciences, Wageningen University, Wageningen, The Netherlands)

  • Jo H.M. Wijnands

    (Agricultural Economics Research Institute (LEI), The Hague, The Netherlands)

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    In recent years, supply chain performance measures have been in the spotlight of many authors. Many performance measures have been used. In this paper, efficiency was measured as an indicator of performance in the vegetable supply chain. The study consisted of two stages. In the first, data envelopment analysis (DEA) evaluated technical and scale efficiency of the Dutch vegetable sector relative to the type of final distribution (mixed marketing channels versus traditional auctions). In the second stage, a truncated regression model (TRM) was applied to explain grower efficiency from a managerial point of view. The results of the first stage showed that growers who sell their products through auctions are less efficient. The second stage revealed that variables such as firm size, age, ownership structure, and distribution channel strategy significantly contribute to the explanation of technical efficiency of the growers, while the variables firm location, firm size, and firm age affect their scale. [EconLit citations: Q130, L 100, and D440] © 2006 Wiley Periodicals, Inc. Agribusiness 22: 267-280, 2006.

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    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 22 (2006)
    Issue (Month): 2 ()
    Pages: 267-280

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    Handle: RePEc:wly:agribz:v:22:y:2006:i:2:p:267-280
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    1. Antonio M. �lvarez & Eduardo Gonz�lez, 1999. "Using Cross-Section Data to Adjust Technical Efficiency Indexes Estimated With Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 894-901.
    2. Fraser, I. & Cordina, D., 1999. "An application of data envelopment analysis to irrigated dairy farms in Northern Victoria, Australia," Agricultural Systems, Elsevier, vol. 59(3), pages 267-282, March.
    3. Chambers, Robert G. & Fare, Rolf & Jaenicke, Edward & Lichtenberg, Erik, 1998. "Using dominance in forming bounds on DEA models: The case of experimental agricultural data," Journal of Econometrics, Elsevier, vol. 85(1), pages 189-203, July.
    4. Simar, L. & Wilson, P.W., 1998. "A General Methodology for Bootstrapping in Nonparametric Frontier Models," Papers 9811, Catholique de Louvain - Institut de statistique.
    5. Li, Dong & O'Brien, Christopher, 1999. "Integrated decision modelling of supply chain efficiency," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 147-157, March.
    6. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    7. Ondersteijn, C. J. M. & Giesen, G. W. J. & Huirne, R. B. M., 2003. "Identification of farmer characteristics and farm strategies explaining changes in environmental management and environmental and economic performance of dairy farms," Agricultural Systems, Elsevier, vol. 78(1), pages 31-55, October.
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