The Efficiency Evaluation and Productivity Variation Growth Trend of Iranian Tile and Ceramic Industry

Document Type : Research article

Authors

Asghar Abolhasani

Safar Farhang

Alii Zare Shah

https://doi.org/10.22067/erd.v18i2.13736

Abstract

Abstract
A great proportion of non-oil export in Iran is related to Tile and Ceramic Industry. So because of its main role in job creation, this industry is one of important industries in Iran.
In the recent years inefficiency in this industry caused an increase in expenses and a decrease in products quality and caused supply surplus crisis and a reduction in sales.
Therefore in this paper, the performance of tile and ceramic company in Meybod in the years of 1386 and 1387 has been evaluated. For this end we use one of non-parametric frontier techniques which name is data envelopment analysis. Results indicate that between 10 companies, only 4 companies, Maryam, Sadaf, Narin and Bastan, have technical and scale efficiency in two years. Investigating productivity growth trendby using Malmquist index shows that, in the year 1387 only Bastan Company hold its productivity in specific level and others experience a decrease in productivity trend. Decomposing this index shows that all the companies except Bastan has a recession in technology frontier. Therefore an optimal strategy for these companies is to focus on modern technology translation and technologic innovations.

Key Words: Data Envelopment Analysis, Efficiency, Malmquist index, Tile and Ceramic Industry

Keywords

Data Envelopment Analysis

Efficiency

Malmquist index

Tile and Ceramic Industry

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