IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v118y2018icp783-802.html
   My bibliography  Save this article

The relationship between organizational forms and the comprehensive effectiveness for public transport services in China?

Author

Listed:
  • Zhang, Chunqin
  • Xiao, Guangnian
  • Liu, Yong
  • Yu, Feng

Abstract

This paper presents a discussion on the effects of organizational forms (including ownership structure and contractual practices) on the comprehensive effectiveness of public transport services in China. Using 26 different Chinese public transport operators in 13 cities across China for the period 2008–2014 as research objects, we integrate public transport industry regulations, and transport operation and passenger requirements to construct an evaluation indicator system based on satisfaction and efficiency. We evaluate comprehensive effectiveness based on a combined evaluation method (CEM) consisting of information entropy theory and data envelopment analysis (DEA), and then take into consideration the truncated regression model to assess the effects between them. Conclusions drawn from the study are summarized as follows: ① The effects of organizational forms on the comprehensive effectiveness of public transport services are confirmed. ② Public transport services franchised to public ownership offer higher comprehensive effectiveness than those franchised to private ownership and mixed ownership. ③ Public transport services regulated by gross cost contracts incite more comprehensive effectiveness than those regulated by net cost contracts and management contracts.

Suggested Citation

  • Zhang, Chunqin & Xiao, Guangnian & Liu, Yong & Yu, Feng, 2018. "The relationship between organizational forms and the comprehensive effectiveness for public transport services in China?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 783-802.
  • Handle: RePEc:eee:transa:v:118:y:2018:i:c:p:783-802
    DOI: 10.1016/j.tra.2018.10.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856418300934
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tra.2018.10.025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. S Gattoufi & M Oral & A Kumar & A Reisman, 2004. "Content analysis of data envelopment analysis literature and its comparison with that of other OR/MS fields," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(9), pages 911-935, September.
    2. Emile Quinet & Roger Vickerman, 2004. "Principles of Transport Economics," Books, Edward Elgar Publishing, number 2581.
    3. Bajari, Patrick & Tadelis, Steven, 2001. "Incentives versus Transaction Costs: A Theory of Procurement Contracts," RAND Journal of Economics, The RAND Corporation, vol. 32(3), pages 387-407, Autumn.
    4. Odeck, James, 2006. "Congestion, ownership, region of operation, and scale: Their impact on bus operator performance in Norway," Socio-Economic Planning Sciences, Elsevier, vol. 40(1), pages 52-69, March.
    5. Obeng, K. & Sakano, R. & Naanwaab, C., 2016. "Understanding overall output efficiency in public transit systems: The roles of input regulations, perceived budget and input subsidies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 133-150.
    6. Andrea Boitani & Marcella Nicolini & Carlo Scarpa, 2013. "Do competition and ownership matter? Evidence from local public transport in Europe," Applied Economics, Taylor & Francis Journals, vol. 45(11), pages 1419-1434, April.
    7. Axel Gautier & Anne Yvrande-Billon, 2013. "Contract Renewal as an Incentive Device. An Application to the French Urban Public Transport Sector," Review of Economics and Institutions, Università di Perugia, vol. 4(1).
    8. Karlaftis, Matthew G., 2004. "A DEA approach for evaluating the efficiency and effectiveness of urban transit systems," European Journal of Operational Research, Elsevier, vol. 152(2), pages 354-364, January.
    9. Philippe Gagnepain & Marc Ivaldi, 2002. "Incentive Regulatory Policies: The Case of Public Transit Systems in France," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 605-629, Winter.
    10. Amaral, Miguel & Saussier, Stéphane & Yvrande-Billon, Anne, 2009. "Auction procedures and competition in public services: The case of urban public transport in France and London," Utilities Policy, Elsevier, vol. 17(2), pages 166-175, June.
    11. Maddala,G. S., 1986. "Limited-Dependent and Qualitative Variables in Econometrics," Cambridge Books, Cambridge University Press, number 9780521338257, October.
    12. Sheth, Chintan & Triantis, Konstantinos & Teodorovic, Dusan, 2007. "Performance evaluation of bus routes: A provider and passenger perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(4), pages 453-478, July.
    13. Luís M B Cabral & José Mata, 2003. "On the Evolution of the Firm Size Distribution: Facts and Theory," American Economic Review, American Economic Association, vol. 93(4), pages 1075-1090, September.
    14. Azadi, Majid & Shabani, Amir & Khodakarami, Mohsen & Farzipoor Saen, Reza, 2014. "Planning in feasible region by two-stage target-setting DEA methods: An application in green supply chain management of public transportation service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 324-338.
    15. Odeck, James, 2008. "The effect of mergers on efficiency and productivity of public transport services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 696-708, May.
    16. Kerstens, K., 1996. "Technical efficiency measurement and explanation of French urban transit companies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(6), pages 431-452, November.
    17. Karlaftis, Matthew G. & Tsamboulas, Dimitrios, 2012. "Efficiency measurement in public transport: Are findings specification sensitive?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 392-402.
    18. Albalate, Daniel & Bel, Germà, 2010. "What shapes local public transportation in Europe? Economics, mobility, institutions, and geography," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 775-790, September.
    19. Caulfield, Brian & Bailey, Diarmuid & Mullarkey, Shane, 2013. "Using data envelopment analysis as a public transport project appraisal tool," Transport Policy, Elsevier, vol. 29(C), pages 74-85.
    20. Elisabetta Ottoz & Graziella Fornengo & Marina Di Giacomo, 2009. "The impact of ownership on the cost of bus service provision: an example from Italy," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 337-349.
    21. William Roy & Anne Yvrande-Billon, 2007. "Ownership, Contractual Practices and Technical Efficiency: The Case of Urban Public Transport in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00107375, HAL.
    22. Pina, Vicente & Torres, Lourdes, 2001. "Analysis of the efficiency of local government services delivery. An application to urban public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(10), pages 929-944, December.
    23. Massimo Filippini & Paola Prioni, 2003. "The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration," Applied Economics, Taylor & Francis Journals, vol. 35(6), pages 683-690.
    24. Kumar, Nagesh & Saqib, Mohammed, 1996. "Firm size, opportunities for adaptation and in-house R & D activity in developing countries: the case of Indian manufacturing," Research Policy, Elsevier, vol. 25(5), pages 713-722, August.
    25. William Roy & Anne Yvrande-Billon, 2007. "Ownership, Contractual Practices and Technical Efficiency: The Case of Urban Public Transport in France," Journal of Transport Economics and Policy, University of Bath, vol. 41(2), pages 257-282, May.
    26. Magnus Söderberg, 2009. "A Broad Performance Benchmark Based On Citizens’ Preferences: The Case Of Swedish Public Transportation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(4), pages 579-603, December.
    27. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    28. Zhang, Chunqin & Juan, Zhicai & Lu, Weite & Xiao, Guangnian, 2016. "Do the organizational forms affect passenger satisfaction? Evidence from Chinese public transport service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 129-148.
    29. Zhang, Chunqin & Juan, Zhicai & Luo, Qingyu & Xiao, Guangnian, 2016. "Performance evaluation of public transit systems using a combined evaluation method," Transport Policy, Elsevier, vol. 45(C), pages 156-167.
    30. Philippe Gagnepain, 1998. "Structures productives de l'industrie du transport urbain et effets des schémas réglementaires," Économie et Prévision, Programme National Persée, vol. 135(4), pages 95-107.
    31. Karlaftis, Matthew & McCarthy, Patrick, 1999. "The Effect of Privatization on Public Transit Costs," Journal of Regulatory Economics, Springer, vol. 16(1), pages 27-43, July.
    32. Miguel Amaral, 2008. "Public vs private management of public utilities: The case of urban public transport in Europe," Post-Print hal-00649931, HAL.
    33. Savage, Ian, 1993. "Deregulation and Privatization of Britain's Local Bus Industry," Journal of Regulatory Economics, Springer, vol. 5(2), pages 143-158, June.
    34. Fiorio, Carlo V. & Florio, Massimo & Perucca, Giovanni, 2013. "User satisfaction and the organization of local public transport: Evidence from European cities," Transport Policy, Elsevier, vol. 29(C), pages 209-218.
    35. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    36. van de Velde, D. M., 1999. "Organisational forms and entrepreneurship in public transport: classifying organisational forms," Transport Policy, Elsevier, vol. 6(3), pages 147-157, July.
    37. Jonathan Cowie & Darinka Asenova, 1999. "Organisation form, scale effects and efficiency in the British bus industry," Transportation, Springer, vol. 26(3), pages 231-248, August.
    38. Jonathan Cowie, 2002. "Acquisition, efficiency and scale economies: An analysis of the British bus industry," Transport Reviews, Taylor & Francis Journals, vol. 22(2), pages 147-157, January.
    39. Yu, Ming-Miin & Fan, Chih-Ku, 2009. "Measuring the performance of multimode bus transit: A mixed structure network DEA model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 501-515, May.
    40. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    41. van de Velde, Didier, 2008. "A new regulation for the European public transport," Research in Transportation Economics, Elsevier, vol. 22(1), pages 78-84, January.
    42. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    43. Zhang, Chunqin & Juan, Zhicai & Xiao, Guangnian, 2015. "Do contractual practices affect technical efficiency? Evidence from public transport operators in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 39-55.
    44. Boame, Attah K., 2004. "The technical efficiency of Canadian urban transit systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(5), pages 401-416, September.
    45. Amaral, Miguel, 2008. "Public vs private management of public utilities - The case of urban public transport in Europe," Research in Transportation Economics, Elsevier, vol. 22(1), pages 85-90, January.
    46. Viton, Philip A., 1997. "Technical efficiency in multi-mode bus transit: A production frontier analysis," Transportation Research Part B: Methodological, Elsevier, vol. 31(1), pages 23-39, February.
    47. Miguel Amaral, 2008. "Public vs private management of public utilities: The case of urban public transport in Europe," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00649931, HAL.
    48. William Roy & Anne Yvrande-Billon, 2007. "Ownership, Contractual Practices and Technical Efficiency: The Case of Urban Public Transport in France," Post-Print halshs-00107375, HAL.
    49. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    50. Entani, Tomoe & Maeda, Yutaka & Tanaka, Hideo, 2002. "Dual models of interval DEA and its extension to interval data," European Journal of Operational Research, Elsevier, vol. 136(1), pages 32-45, January.
    51. Huanming WANG & Mildred E. WARNER & Yuanhong TIAN & Dajian ZHU, 2014. "Public Owner With Business Delivery Mode In China: Case Study Of The Shanghai Public Bus System," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 147-164, March.
    52. Barros, Carlos Pestana & Dieke, Peter U.C., 2008. "Measuring the economic efficiency of airports: A Simar-Wilson methodology analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(6), pages 1039-1051, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chunqin Zhang & Yuting Hu & Anning Ni & Hongwei Li, 2019. "Compensation Scheme for Self-Employed Bus Service Requisitions in Urban–Rural Passenger Transport," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    2. Zhang, Chunqin & Liu, Yong & Lu, Weite & Xiao, Guangnian, 2019. "Evaluating passenger satisfaction index based on PLS-SEM model: Evidence from Chinese public transport service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 149-164.
    3. Horn, Christine & Gifford, Sandra M. & Ting, Christina Y.P., 2021. "Informal, essential and embedded: Transport strategies in remote Sarawak," Journal of Transport Geography, Elsevier, vol. 96(C).
    4. Yao, Di & Xu, Liqun & Li, Jinpei, 2020. "Does technical efficiency play a mediating role between bus facility scale and ridership attraction? Evidence from bus practices in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 77-96.
    5. Wey, Wann-Ming & Kang, Chao-Chung & Khan, Haider A., 2020. "Evaluating the effects of environmental factors and a transfer fare discount policy on the performance of an urban metro system," Transport Policy, Elsevier, vol. 97(C), pages 172-185.
    6. Chunqin Zhang & Daoyou Wang & Anning Ni & Xunyou Ni & Guangnian Xiao, 2019. "Different Effects of Contractual Form on Public Transport Satisfaction: Evidence from Large- and Medium-Sized Cities in China," Sustainability, MDPI, vol. 11(19), pages 1-21, October.
    7. Ganji, S.S. & Dehghani, Alireza & Ajirlu, Shahrouz Fathi, 2024. "Evaluation of intercity road passenger transportation using a novel double-frontier game-regret-cross-efficiency," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cinzia Daraio & Marco Diana & Flavia Di Costa & Claudio Leporelli & Giorgio Matteucci & Alberto Nastasi, 2014. "Efficiency and effectiveness in the urban public transport sector: a critical review with directions for future research," DIAG Technical Reports 2014-14, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    2. Zhang, Chunqin & Juan, Zhicai & Xiao, Guangnian, 2015. "Do contractual practices affect technical efficiency? Evidence from public transport operators in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 39-55.
    3. Di Yao & Liqun Xu & Jinpei Li, 2019. "Evaluating the Performance of Public Transit Systems: A Case Study of Eleven Cities in China," Sustainability, MDPI, vol. 11(13), pages 1-21, June.
    4. Zhang, Chunqin & Juan, Zhicai & Luo, Qingyu & Xiao, Guangnian, 2016. "Performance evaluation of public transit systems using a combined evaluation method," Transport Policy, Elsevier, vol. 45(C), pages 156-167.
    5. Yao, Di & Xu, Liqun & Li, Jinpei, 2020. "Does technical efficiency play a mediating role between bus facility scale and ridership attraction? Evidence from bus practices in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 77-96.
    6. Huang, Wencheng & Shuai, Bin & Sun, Yan & Wang, Yang & Antwi, Eric, 2018. "Using entropy-TOPSIS method to evaluate urban rail transit system operation performance: The China case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 292-303.
    7. Pestana Barros, Carlos & Peypoch, Nicolas, 2010. "Productivity changes in Portuguese bus companies," Transport Policy, Elsevier, vol. 17(5), pages 295-302, September.
    8. Andrea Boitani & Marcella Nicolini & Carlo Scarpa, 2013. "Do competition and ownership matter? Evidence from local public transport in Europe," Applied Economics, Taylor & Francis Journals, vol. 45(11), pages 1419-1434, April.
    9. Merkert, Rico & Mulley, Corinne & Hakim, Md Mahbubul, 2017. "Determinants of bus rapid transit (BRT) system revenue and effectiveness – A global benchmarking exercise," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 75-88.
    10. Karlaftis, Matthew G. & Tsamboulas, Dimitrios, 2012. "Efficiency measurement in public transport: Are findings specification sensitive?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 392-402.
    11. Campos-Alba, Cristina M. & Prior, Diego & Pérez-López, Gemma & Zafra-Gómez, Jose L., 2020. "Long-term cost efficiency of alternative management forms for urban public transport from the public sector perspective," Transport Policy, Elsevier, vol. 88(C), pages 16-23.
    12. Francesco, Gastaldi & Lucia, Quaglino & Carlo, Stagnaro, 2012. "Il trasporto pubblico locale e la concorrenza. Cambiare paradigma per salvare il servizio: il caso ligure [Local Public Transportation and Competition. Changing Paradigm to Save the Service: The Ca," MPRA Paper 49464, University Library of Munich, Germany.
    13. Avenali, Alessandro & Boitani, Andrea & Catalano, Giuseppe & D’Alfonso, Tiziana & Matteucci, Giorgio, 2016. "Assessing standard costs in local public bus transport: Evidence from Italy," Transport Policy, Elsevier, vol. 52(C), pages 164-174.
    14. Andrea ZATTI, 2011. "Organizational models in European local public transport: is the new paradigm really dominant," Departmental Working Papers 2011-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    15. Mahmoudi, Reza & Emrouznejad, Ali & Shetab-Boushehri, Seyyed-Nader & Hejazi, Seyed Reza, 2020. "The origins, development and future directions of data envelopment analysis approach in transportation systems," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    16. Zhang, Chunqin & Juan, Zhicai & Lu, Weite & Xiao, Guangnian, 2016. "Do the organizational forms affect passenger satisfaction? Evidence from Chinese public transport service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 129-148.
    17. Georgios Georgiadis & Ioannis Politis & Panagiotis Papaioannou, 2020. "How Does Operational Environment Influence Public Transport Effectiveness? Evidence from European Urban Bus Operators," Sustainability, MDPI, vol. 12(12), pages 1-19, June.
    18. Chunqin Zhang & Daoyou Wang & Anning Ni & Xunyou Ni & Guangnian Xiao, 2019. "Different Effects of Contractual Form on Public Transport Satisfaction: Evidence from Large- and Medium-Sized Cities in China," Sustainability, MDPI, vol. 11(19), pages 1-21, October.
    19. Axel Gautier & Anne Yvrande-Billon, 2013. "Contract Renewal as an Incentive Device. An Application to the French Urban Public Transport Sector," Review of Economics and Institutions, Università di Perugia, vol. 4(1).
    20. Mouwen, Arnoud & van Ommeren, Jos, 2016. "The effect of contract renewal and competitive tendering on public transport costs, subsidies and ridership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 87(C), pages 78-89.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:118:y:2018:i:c:p:783-802. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.