Efficiency of large firms operating in the croatian food industry: Data envelopment analysis

Abstract

The aim of this research was to estimate the overall technical, pure technical and scale efficiency of large firms operating in the Croatian food industry. The analysis was conducted using Data Envelopment Analysis, while applying both, CCR and BCC output-oriented model. With this approach, it was possible to identify efficient firms that can serve as examples of the best operating practice, as well as those inefficient firms which need to improve their performance. The obtained results revealed a high level of achieved overall technical, pure technical and scale efficiency, as well as the fact that firms in this industry mainly over-utilize the existing scale size.