Research Article
A Study on Measuring Management Efficiency of Domestic Listed Pharmaceutical Companies
Published: January 2002 · Vol. 31 No. 6 · pp. 1747-1762
Full Text
Abstract
The static DEA model was difficult to apply when there were no comparable firms or when the comparison was inappropriate. Moreover, for firms measured as having an efficiency score of 1.0 (indicating good performance) through the static DEA model, no further efficiency improvement targets could be identified. However, based on the results and principles of prior research related to dynamic analysis techniques and longitudinal analysis, the DEA model can be utilized to make relative comparisons of dynamic efficiency across multiple time points for a single firm. This study attempted to compare the dynamic efficiency of input-output factors across multiple time points for a single firm using the DEA model, which has traditionally been used primarily for static efficiency comparisons. As a practical application, static efficiency comparisons were conducted for domestically listed pharmaceutical companies, and dynamic efficiency comparisons were then performed for firms evaluated as efficient, thereby demonstrating the model's usefulness. As a result, among the two companies evaluated as having a static efficiency of 1.0 out of all 37 domestically listed pharmaceutical companies, one company showed good dynamic efficiency, while the other was found to have room for improvement in its input-output factors.
