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Measuring the technical efficiency of cooperative societies in Kuwait

Author

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  • Abdullah Al Mutairi
  • Dennis Olson
  • Bashaer Al Ghanim

Abstract

This study employs bootstrap data envelopment analysis to measure the technical efficiencies of 48 Kuwaiti retail cooperative societies (coops) during the years 2012–2015. Average profit efficiency falls substantially from 84% to 70% after applying a bootstrap correction. The bias is larger for coops originally identified as being on the efficient frontier. The average coop is too small, but both profitability and efficiency are negatively related to the number of direct branches (mini‐marts). Also, coops can increase profitability through greater equity capitalization, whereas better control of labor costs leads to higher profit efficiency.

Suggested Citation

  • Abdullah Al Mutairi & Dennis Olson & Bashaer Al Ghanim, 2018. "Measuring the technical efficiency of cooperative societies in Kuwait," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(7), pages 792-804, October.
  • Handle: RePEc:wly:mgtdec:v:39:y:2018:i:7:p:792-804
    DOI: 10.1002/mde.2962
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    Cited by:

    1. Kuhle Prudence Mnisi & Abdul Latif Alhassan, 2021. "Financial structure and cooperative efficiency: A pecking‐order evidence from sugarcane farmers in Eswatini," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 261-281, June.
    2. Wei‐Kang Wang & Wen‐Min Lu & Qian Long Kweh & Hoang Tu Nhi Truong, 2020. "What do U.S. biopharmaceutical companies get from patents and research and development spikes for their dynamic corporate performance?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 762-770, July.

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