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

Abstract

This paper proposes a dynamic multidirectional inefficiency analysis approach within the context of Data Envelopment Analysis to measuring input-and investmentspecific 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][2006][2007][2008][2009][2010][2011][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.

Cross-National Comparison of Dynamic Inefficiency for European Dietetic Food Manufacturing Firms

“…In contrast, many studies have analyzed the inefficiency of gross food manufacturing sector (e.g., Setiawan et al, 2012;Giokas et al, 2015;Gardijan & Lukač, 2018;Kedžo & Lukač, 2021), or several subsectors within food manufacturing (e.g., Ali et al, 2009;Shee & Stefanou, 2015;Boyd & Doolin, 2021). A vast amount of research has also been devoted to the inefficiency analysis of specific subsectors of food processing, such as meat processing (Kapelko, 2017;Kapelko & Oude Lansink, 2018), dairy processing (Soboh et al, 2014;Čechura & Žáková Kroupová, 2021), oils (Dios-Palomares & Martínez-Paz, 2011;Niavis et al, 2018), or sugar (Mulwa et al, 2009;Carlucci et al, 2021). Inefficiency studies of several subsectors of food manufacturing have also analyzed other food industries, but without distinguishing the manufacturing of dietetic food (see, e.g., Rezitis & Kalantzi, 2016;Rudinskaya, 2017;Kapya et al, 2018) 5 .…”

Dynamic Cost Inefficiency of the European Union Meat Processing Firms

“…Kapelko & Oude Lansink (2017) analyse and compare firms at the regional EU level, but focus on dairy manufacturing firms and only on dynamic technical inefficiency. Similarly, Kapelko & Oude Lansink (2018) analyse the performance of meat manufacturing firms in different EU regions, however again only from the perspective of technical inefficiency. Setiawan & Oude Lansink (2018) analyse dynamic technical inefficiency of the Indonesian food and beverages industry.…”