Measuring the performance efficiency of Turkish electrical machinery manufacturing SMEs with frontier method

Muhammet Enis Bulak, Ali Turkyilmaz, Metin Satir, Muhammad Shoaib, Muhammad Shahbaz

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

PurposeThe purpose of this paper is to concentrate on measuring and evaluating the performance efficiency of electrical machinery manufacturing small- and medium-sized enterprises (SMEs) in Turkey. The industry-based efficiency evaluation provides management with information including the relatively best practice firms in the observation sets and locates the relatively inefficient firms by comparing with the frontiers. Design/methodology/approachIn this study, an evaluation model, based on previous literature and recent industry SWOT analysis, is proposed to carry out efficiency analysis for electrical machinery manufacturing SMEs and output-oriented CCR data envelopment analysis methodology is used to find out frontier SMEs. The proposed efficiency measurement model is used for 93 SMEs from electrical machinery manufacturing sector. FindingsRely on the model results, efficiency score of the firms are compared and enhancements required for becoming an efficient unit are denoted. This study is based on previous research model that was carried out for ten different industries. The results indicated that 39 out of 93 companies efficiently performed in general perspective. The analysis also resulted that firms have significant resource excesses and shortages on outputs. Originality/valueThe distinguished way of this study is to evaluate Turkish electrical machinery manufacturing companies’ resources relying on performance efficiency model that compromises of strategic competitive priorities and also the model provides enhancement opportunities to SMEs for being more competitive in the sector. The characteristics features of the firms are offered with respect to demographic, financial and quality perspectives.

Original languageEnglish
Pages (from-to)2004-2026
Number of pages23
JournalBenchmarking
Volume23
Issue number7
DOIs
Publication statusPublished - 2016
Externally publishedYes

Keywords

  • Data envelopment analysis
  • Electrical machinery industry
  • Performance measurement
  • Turkish SMEs

ASJC Scopus subject areas

  • Business and International Management

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