Performance Modelling of Indian SMEs: A DEA Approach
By: Pal, Sanjay
Contributor(s): Mishra, Rohita kumar
Material type:
ArticlePublisher: 2015Description: 347 - 367Subject(s): Edi Faculty Papers | Smes | Decision Making Units | Data Envelopment Analysis | Benchmarking | Msmes | Micro, Small And Medium Enterprises | Entrepreneurship In The Msme Sector | Entrepreneurship | Eleventh Biennial Conference On Entrepre | Biennial Conference PapersOnline resources: Click here to access online
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Eleventh Biennial Conference on Entrepreneurship/ Edited by Sasi Misra, Dinesh Awasthi, Ganapathi BatthiniSummary: The purpose of the present study is to develop a model through Data Envelopment Analysis (DEA) for assessment and prediction of performance of Small & Medium Enterprises (SMEs) for effective decision making. DEA is a robust mathematical tool for evaluation of efficiency of SMEs. DEA basically, takes into account the input and output components of a decision making unit (DMU) to calculate technical efficiency (TE). TE is treated as an indicator for performance of DMUs and comparison has been made among them. A sensitivity analysis has been carried out to study the robustness of the ranking of SMEs obtained through DEA. A total of 41 Indian companies who are producing auto components are chosen for benchmarking purpose. The average score of efficiency is 0.565with a standard deviation of 0.315 when Charnes, Cooper and Rhodes (CCR) model is used. Similarly, when the Banker, Charnes and Cooper (BCC) model is used the average score is 0.751 with a standard deviation of 0.246. The rank order correlation coefficient between the efficiency ranking obtained through CCR and BCC model is 0.763 (p=0.000) which is significant. The peer group and peer weights for the inefficient SMEs have...
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The purpose of the present study is to develop a model through Data Envelopment Analysis (DEA) for assessment and prediction of performance of Small & Medium Enterprises (SMEs) for effective decision making. DEA is a robust mathematical tool for evaluation of efficiency of SMEs. DEA basically, takes into account the input and output components of a decision making unit (DMU) to calculate technical efficiency (TE). TE is treated as an indicator for performance of DMUs and comparison has been made among them. A sensitivity analysis has been carried out to study the robustness of the ranking of SMEs obtained through DEA. A total of 41 Indian companies who are producing auto components are chosen for benchmarking purpose. The average score of efficiency is 0.565with a standard deviation of 0.315 when Charnes, Cooper and Rhodes (CCR) model is used. Similarly, when the Banker, Charnes and Cooper (BCC) model is used the average score is 0.751 with a standard deviation of 0.246. The rank order correlation coefficient between the efficiency ranking obtained through CCR and BCC model is 0.763 (p=0.000) which is significant. The peer group and peer weights for the inefficient SMEs have...
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