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Measuring the Efficiency of Turkish SMEs: A Data Envelopment Analysis Approach

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  • Arzum Buyukkeklik
  • Harun Dumlu
  • Samet Evci

Abstract

Small and medium-sized enterprises (SMEs) that are undertaking significant roles in the development of the economy of Turkey and in the increase of the production and employment encounter with many problems. Financial problems take an important place among them. The resources that could be used by SMEs in meeting the financing needs to be limited require the efficient use of these resources. In this study, the resource activities of SMEs have been studied with Data Envelopment Analysis (DEA). In analysis short-term liabilities, long-term liabilities and equity values of the enterprises that are quoted continuously on SME Industrial Index within 2011-2014 have been used as input variables; and the sales revenue and net profit values have been used as output variables. The total efficiency values of each decision making unit have been attained with the use of CCR model according to the years, technical efficiency values of them have been attained with the use of BCC model and the scale efficiency values of them have been attained by comparing these values to each other. As a result, it has been determined that those providing resource efficiency are only a few among the enterprises that are proceeded in the BIST SME Industrial Index; and these enterprises could reach their existent sales revenue and net profit numbers with less resources. In this respect it has been revealed that the SMEs that have problems in providing credit and not having strong equity structure are not able to make use of their own resources efficiently.

Suggested Citation

  • Arzum Buyukkeklik & Harun Dumlu & Samet Evci, 2016. "Measuring the Efficiency of Turkish SMEs: A Data Envelopment Analysis Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(6), pages 190-190, June.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:6:p:190
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    References listed on IDEAS

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    Cited by:

    1. Fabrice-Gilles Ndombi Avouba & Prince Ossebi Douniam & Christelle Ines Leticia Ndombi Ondze, 2024. "Efficiency of SMEs in Africa: Evidence from Congolese Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10956-10984, September.
    2. Chae Hyun Im & Keun Tae Cho, 2021. "Comparing and Identifying Influential Factors of Technological Innovation Efficiency in Manufacturing and Service Industries Using DEA: A Study of SMEs in South Korea," Sustainability, MDPI, vol. 13(23), pages 1-21, November.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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