Muhammet Enis Bulak, Ali Turkyilmaz, Metin Satir, Muhammad Shoaib and Muhammad Shahbaz
The purpose of this paper is to concentrate on measuring and evaluating the performance efficiency of electrical machinery manufacturing small- and medium-sized enterprises (SMEs…
Abstract
Purpose
The 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/approach
In 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.
Findings
Rely 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/value
The 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.
Details
Keywords
Muhammet Enis Bulak and Ali Turkyilmaz
The purpose of this paper is to measure and evaluate the performance efficiency of manufacturing small and medium enterprises (SMEs) in Turkey. The industry-based efficiency…
Abstract
Purpose
The purpose of this paper is to measure and evaluate the performance efficiency of manufacturing small and medium enterprises (SMEs) in Turkey. The industry-based efficiency evaluation provides management with information regarding the relatively best practice sectors in the observation sets and locates the relatively inefficient sectors by comparing with the best practiced ones.
Design/methodology/approach
In this study, an evaluation model is constructed to come up with efficiency analysis for manufacturing SMEs and output-oriented CCR data envelopment analysis approach is utilized to figure out best practiced SMEs. The proposed efficiency measurement model is utilized for 744 SMEs from ten different sectors. Based on the efficiency results, efficiency score of the studied sectors are compared and improvements needed for becoming an efficient unit are reported.
Findings
The results showed that 94 companies efficiently performed in general perspective. The analysis also revealed that “Wearing Apparel, Dressing and Dyeing of Fur” and “Chemicals and Chemical Products” manufacturing sectors were found to be the inefficient of the overall usage of strategic competitive priorities.
Originality/value
Based on the previous literature, this study brings more recent perspectives such as service activities and financial power to the four main competitive priorities of cost, quality, flexibility and delivery. The variables used in this study are as follows: Proximity to Market, Ability to Control Costs, Potential Labor Force, Product Quality, Prompt Advantage, Certification, Product Assortment, Distribution Channel, Pricing Policy, Service, Capital, Machinery-Equipment Track, Profit Margin and Market Share.