Efficiency Analysis of the Firms With Malmquist-TFP Index: The Case of Textile Industry

The performance which the firms demonstrate to have returns more than average with competitive advantageous is quite important today. One of the most important indicators defining the performance of the firms is the increase in the efficiency. It becomes possible to reach the objectives and to achieve the targets for profitability with the increase in the efficiency for the firms. In this context, the firms continuously measure the efficiency and productivity in relation with their activities for the current status and if there is any inefficiency, the matters resulting with such inefficiency should be improved. There are various methods to be used for the measurements of the efficiency. One of those methods is Malmquist Total Factor Productivity (TFP) Index on the basis of the Data Envelopment Analysis (DEA). Malmquist-TFP index that measures the change in the Total Factor Productivity which means the sum of the efficiency of all the factors in the production process, is assessed as an important method for the determination of the sources of the efficiency of the firms and detection of the level of their achievements. In Malmquist-TFP index, total factor productivity of the firms is calculated with reference to the technical efficiency change and technological efficiency change. Thus, it can be found if the change in the time is resulted from technical efficiency change or technological efficiency change. In the study, the change in the efficiency of the firms in the textile industry and the sources of this change was analysed by using Malmquist-TFP index on the basis of CCR model focusing on DEA output. In order to figure out the change in the efficiency with reference to the years and whether the firms to be considered in the textile industry are relatively managed well or not, three input components (number of employees, total actives, equity) and three output components (net sales, net profit and export) were used in the study. In the study, Total Factor Productivity of the firms for the period between 2014 and 2016 were assessed separately and the sources of the change were tried to be figured out as periods. The calculations in relation with the analysis were done with DEAP 2.1 software. First of all, the Technical Efficiency Change (EFFch) and Technological Change (TECHch) of the firms for the period 2014-2016 were analysed and the Total Factor Productivity (TFP) was determined. As a result of the analysis, it was found that there was decrease in the Total Factor Productivity of the firms. When the findings are considered, the decrease in TFP of