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Decomposition of efficiency in the global seed industry: A nonparametric approach

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  • Richard D. Smart
  • Amer Ait Sidhoum
  • Johannes Sauer

Abstract

We analyzed the efficiency levels of nine of the largest commercial seed‐producing firms globally for the period 2008–2015 and assessed if there is a relationship between firm size and efficiency. We employed the nonparametric technique of data envelopment analysis (DEA) using an input‐oriented model with balanced panel data. We accounted for the assumption of time invariance of the frontier by using the DEA windows analysis technique. Aggregate mean overall technical efficiency increased by 0.8%. We decomposed these results to pure technical efficiency and scale efficiency, and found no meaningful relationship between firm size (assets) and efficiency.

Suggested Citation

  • Richard D. Smart & Amer Ait Sidhoum & Johannes Sauer, 2022. "Decomposition of efficiency in the global seed industry: A nonparametric approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2133-2147, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2133-2147
    DOI: 10.1002/mde.3514
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