Efficiency Assessment of Consumer’s Electronics Sector: Data Envelopment Analysis

ABSTRACT

This article aims to assess the efficiency levels of the Indian consumer electronics sector listed companies. The efficiency levels of the Decision-Making Units (DMUs) have been assessed using a non-parametric technique, that is, Data Envelopment Analysis (DEA). The present study is based on panel data of a group of 16 companies listed on the Bombay Stock Exchange for the period March 31, 2014 to March 31, 2018. The study is based on an output-oriented DEA mechanism, that is, profit maximization and Production maximization instead of input-oriented DEA that emphasizes cost and input minimization. The Data Envelopment Analysis has been performed through DEA Excel Solver Pro and R-3.4.1 Software to analyze efficiency levels of the companies mentioned above. The companies’ performance for the period under review has assessed and compared through the use of the Malmquist Productivity Index (MPI) and Tobit Regression. There are very few known studies that have focused on assessing the efficiency level of Indian Consumer’ electronic market using output-oriented DEA models. As per our information, this study is unique in terms of analyzing the efficiency level of the Indian consumer electronic sector for 5 years. The DEA method, along with two other techniques, that is, Malmquist Productivity Index (MPI) and Tobit Regression, can be explained in detail and much more realistic compared to other techniques.

KEYWORDS:

• technical efficiency
• scale efficiency
• Data Envelopment Analysis
• consumer’s electronics sector
• Malmquist Productivity Index (MPI)
• Tobit Regression

Disclosure statement

No potential conflict of interest was reported by the author(s).

Web References

BSE, https://Bseindia.com

Notes

1. Farrell (1957, p. 253–290).

2. Charnes et al. (1978, p. 429–444).

Additional information

Funding

The author(s) reported there is no funding associated with the work featured in this article.