Efficiency of wood-processing enterprises—evaluation based on dea and mpi: A comparison between Slovakia and Bulgaria for the period 2014–2018

Abstract

The ongoing transition to a low-carbon, sustainable forest-based economy, and the adoption of circular bioeconomy principles in the wood-processing industry is associated with the optimization of natural resources, application of environmentally sustainable production technologies, adoption of technological and organizational innovations, and increased economic efficiency and competitiveness. The implementation of all these measures can help to reach the biggest challenge of our time in the fight against climate change in a cost-effective and competitive way. The aim of this study was to estimate the technical efficiency of wood-processing companies in the Slovak Republic and the Republic of Bulgaria by applying data envelopment analysis (DEA) and the Malmquist productivity index (MPI), and to reveal some factors for efficiency improvements. The economic efficiency evaluation based on official data was performed using selected indices of four wood-processing companies in each country in the period 2014–2018. The study implemented an output-oriented DEA model with constant returns to scale as a nonparametric linear approach for measuring the efficiency of production decision-making units (DMUs). The results obtained revealed that the studied Slovak companies were more efficient with better management in terms of machinery planning and overhead utilization. Markedly, the Bulgarian companies achieved better materials management and current planning quality. Increased economic efficiency of wood-processing enterprises in both countries can be realized through investments in innovative technological improvements, and enhanced research and development activities.