Financial efficiency of companies operating in the Kosovo food sector: DEA and DEAHP

Abstract

Data Envelopment Analysis (DEA) evaluates a large number of input and output variables using mathematical programming techniques and analyzes the effectiveness of similar decision making units (DMU). Unlike traditional methods, the most important advantage of DEA is that the weights of input and output variables can be defined by the analyzer. In this study, the limitations of the DEA weights were determined using the AHP, which considers expert opinion. In addition, an alternative judgment scale was used for the Saaty judgment scale, which is used as a standard in the AHP method, and thus a more sensitive analysis was performed. There have been studies dealing with the comparison of judgment scales, but few studies on consistency sensitivity are needed. This point has also been addressed in this study. Subsequently, the financial efficiency of 27 companies operating in the food sector in Kosovo was evaluated with the weight-restricted DEA model, first created using the unweighted DEA model and then the AHP model, and the two models were compared. This paper is the first one of its kind since there are no previous studies regarding the examination of the financial efficiency of companies operating in the Kosovo food sector based on the DEAHP method.

A Performance Study on the Potential Improvement of Construction Sector Companies in Malaysia

“…The banking sector has been be the topic of the most studies using DEA to gauge effectiveness based on the past studies [7][8][9][10][11]. Application of DEA to measure efficiency in other sectors such as agricultural sector, food sector, healthcare sector, education sector and many other sectors in Malaysia as well as other countries had been done by the previous studies [12][13][14][15][16][17][18][19][20]. It is essential to comprehend the efficiency of the construction sector as it makes a significant contribution to Malaysia's economic development, hence this study is aimed to obtain the efficiency of construction sector in Malaysia, together with the potential improvement of each company.…”