IDEAS home Printed from https://ideas.repec.org/p/ags/umrfwp/14333.html
   My bibliography  Save this paper

Competitive Analysis Of U.S. Food Processing Plants

Author

Listed:
  • Jayanthi, Shekhar
  • Kocha, Bart
  • Sinha, Kingshuk K.

Abstract

This paper presents a model-based approach for competitive analysis of manufacturing plants in the U. S. food processing industry. As part of this approach, plant competitiveness is measured using Operational Competitiveness Ratings Analysis (OCRA) -- a new non-parametric method of computing relative inefficiency. Drivers of competitiveness are identified in terms of policies related to plant structure and infrastructure. Policies related to plant structure are those decisions that are related with "bricks and mortar" and have long term implications, such as decisions related to plant size and capacity. Policies related to plant infrastructure are decisions related to how the " bricks and mortar" are used. These policies are typically under the direct control of the operations managers and have a short-term orientation, such as decisions related to equipment, quality, inventory, workforce and confusion-engendering activities (e.g. new product introductions and product variety). The empirical analysis is based on detailed cross-sectional data on 20 processed food manufacturing plants. With respect to plant structure, the results suggest that small sized food processing plants are competitive, and both capacity underutilization and overutilization are detrimental to plant competitiveness. Among the significant results with respect to plant infrastructure, equipment maintenance, quality management programs, packaging supplies inventory, workforce training and product variety are positively associated with plant competitiveness. The results also suggest that introduction of new products disrupts plant operations, at least in the short run, and is negatively associated with plant competitiveness.

Suggested Citation

  • Jayanthi, Shekhar & Kocha, Bart & Sinha, Kingshuk K., 1996. "Competitive Analysis Of U.S. Food Processing Plants," Working Papers 14333, University of Minnesota, The Food Industry Center.
    • Handle: RePEc:ags:umrfwp:14333
    DOI: 10.22004/ag.econ.14333
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/14333/files/tr96-04.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.14333?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
    ---><---

    References listed on IDEAS

    as
    1. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    2. Parkan, Celik, 1996. "Measuring the performance of hotel operations," Socio-Economic Planning Sciences, Elsevier, vol. 30(4), pages 257-292, December.
    3. John E. Prescott & John H. Grant, 1988. "A Manager's Guide for Evaluating Competitive Analysis Techniques," Interfaces, INFORMS, vol. 18(3), pages 10-22, June.
    4. 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.
    5. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
    6. Oral, Muhittin, 1993. "A methodology for competitiveness analysis and strategy formulation in glass industry," European Journal of Operational Research, Elsevier, vol. 68(1), pages 9-22, July.
    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. Nilsen Kundakcı, 2019. "A Comparative Analyze Based On EATWOS and OCRA Methods For Supplier Evaluation," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 7(1), pages 103-112, June.
    2. Ismaili, Mohamed & Raggi, Meri & Viaggi, Davide, 2007. "People, trade and training: the needs of Morocco agricultural enterprises facing EU markets," 105th Seminar, March 8-10, 2007, Bologna, Italy 7882, European Association of Agricultural Economists.
    3. Ruzhdi Jashari, 2017. "Protection of Personal Data Requirement of Modern Times for the Functioning of the Security, Individual Freedoms and the Rule of Law," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 2, May Augus.
    4. Tóth, József, 2005. "Működési versenyképesség és hajtóerői a hazai húsiparban [Operative competitiveness and the forces driving it in the Hungarian meat industry]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 743-762.
    5. Muhammad AFZAL & Maryam AYAZ, 2013. "Efficiency of Food Sector of Pakistan-A Dea Analysis," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(10), pages 1310-1330, October.

    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. Jayanthi, Shekhar & Kocha, Bart & Sinha, Kingshuk K., 1999. "Competitive analysis of manufacturing plants: An application to the US processed food industry," European Journal of Operational Research, Elsevier, vol. 118(2), pages 217-234, October.
    2. Kashani, Hossein A., 2005. "Regulation and efficiency: an empirical analysis of the United Kingdom continental shelf petroleum industry," Energy Policy, Elsevier, vol. 33(7), pages 915-925, May.
    3. Hailu, Getu & Goddard, Ellen W. & Jeffrey, Scott R., 2005. "Measuring Efficiency in Fruit and Vegetable Marketing Co-operatives with Heterogeneous Technologies in Canada," 2005 Annual meeting, July 24-27, Providence, RI 19507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Gian Carlo Scarsi, 1999. "Local Electricity Distribution in Italy: Comparative Efficiency Analysis and Methodological Cross-Checking," Working Papers 1999.16, Fondazione Eni Enrico Mattei.
    5. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    6. Maria Francesca Cracolici & Peter Nijkamp & Miranda Cuffaro, 2007. "Efficiency and Productivity of Italian Tourist Destinations: A Quantitative Estimation Based on Data Envelopment Analysis and the Malmquist Method," Springer Books, in: Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), Advances in Modern Tourism Research, chapter 0, pages 325-343, Springer.
    7. Maria Francesca Cracolici & Peter Nijkamp & Piet Rietveld, 2008. "Assessment of Tourism Competitiveness by Analysing Destination Efficiency," Tourism Economics, , vol. 14(2), pages 325-342, June.
    8. Khem Sharma & Pingsun Leung & Halina Zaleski, 1997. "Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(4), pages 447-459, November.
    9. Gonzalez, M. & Trujillo, L., 2007. "Efficiency measurement in the port industry: a survey of the empirical evidence," Working Papers 07/08, Department of Economics, City University London.
    10. Martín Rossi, 2015. "The Econometrics Approach to the Measurement of Efficiency: A Survey," Working Papers 117, Universidad de San Andres, Departamento de Economia, revised Feb 2015.
    11. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    12. Bagdadioglu, Necmiddin & Waddams Price, Catherine M. & Weyman-Jones, Thomas G., 1996. "Efficiency and ownership in electricity distribution: A non-parametric model of the Turkish experience," Energy Economics, Elsevier, vol. 18(1-2), pages 1-23, April.
    13. Suyanto, & Salim, Ruhul & Bloch, Harry, 2014. "Which firms benefit from foreign direct investment? Empirical evidence from Indonesian manufacturing," Journal of Asian Economics, Elsevier, vol. 33(C), pages 16-29.
    14. Salustiano, Silvia Ferreira Marques & Barbosa, Natália & Moreira, Tito Belchior Silva, 2020. "Do subsidies drive technical efficiency? The case of portuguese firms in the agribusiness sector," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 58(3), January.
    15. Cullinane, Kevin & Song, Dong-Wook, 2006. "Estimating the Relative Efficiency of European Container Ports: A Stochastic Frontier Analysis," Research in Transportation Economics, Elsevier, vol. 16(1), pages 85-115, January.
    16. Nguyen Hung Anh & Wolfgang Bokelmann & Do Thi Nga & Nguyen Van Minh, 2019. "Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam," Economies, MDPI, vol. 7(3), pages 1-25, July.
    17. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    18. Stephen M. Miller & Terrence M. Clauretie & Thomas M. Springer, 2006. "Economies Of Scale And Cost Efficiencies: A Panel‐Data Stochastic‐Frontier Analysis Of Real Estate Investment Trusts," Manchester School, University of Manchester, vol. 74(4), pages 483-499, July.
    19. Kao, Chiang & Chen, Liang-Hsuan & Wang, Tai-Yue & Kuo, Shyanjaw & Horng, Shi-Dai, 1995. "Productivity improvement: Efficiency approach vs effectiveness approach," Omega, Elsevier, vol. 23(2), pages 197-204, April.
    20. Schalk Hans Joachim & Untiedt Gerhard & Lüschow Jörg, 1995. "Technische Effizienz, Wachstum und Konvergenz in den Arbeitsmarktregionen der Bundesrepublik Deutschland (West). Eine ökonometrische Analyse für die Verarbeitende Industrie mit einem „Frontier Product," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 214(1), pages 25-49, February.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    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:ags:umrfwp:14333. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/rfumnus.html .

    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.