Evaluating efficiency levels comparatively: Data envelopment analysis application for Turkish textile and apparel industry
Abstract: The purpose of this
study is to show the usage of DEA in efficiency measurement.
Design/methodology/approach: The efficiencies of textile and apparel
companies were analyzed by input-oriented DEA model under variable return to
scale assumption. The textile and apparel companies quoted in Istanbul Stock
Exchange for the period 2003 and 2008 were evaluated in terms of efficiency
level providing a framework for the calculation of input excesses and output
shortages.
Findings: The analysis revealed that the average efficiency scores of the
apparel industry was higher than the textile industry and two industries
together. The companies in the apparel industry should overcome the lack of
insufficient level of exports whereas the textile industry needs to increase
gross value added in order to be more efficient.
Research limitations/implications: Because of missing data, four
companies from textile industry and one company from apparel industry were
ignored although they took place in the records of Istanbul Stock Exchange.
Practical implications: This study provided a framework for DEA application
in determination and comparison of efficiency performance in an industry level.
Originality/value: Selecting the groups compared as textile industry,
apparel industry and the two industries in general allowed discussing the
comparative efficiencies of two industries eliminating the industry specific
pitfalls.
Author: Canan Saricam, Nazan
Erdumlu
Journal Code: jptindustrigg120028
