Malmquist Productivity Analysis of Top Global Automobile Manufacturers
The automobile industry is one of the largest economies in the world, by revenue. Being one of the industries with higher employment output, this has become a major determinant of economic growth. In view of the declining automobile production after a period of continuous growth in the 2008 global a...
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| Format: | Article |
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MDPI AG
2020-04-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/8/4/580 |
| _version_ | 1827718679035379712 |
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| author | Chia-Nan Wang Hector Tibo Hong Anh Nguyen |
| author_facet | Chia-Nan Wang Hector Tibo Hong Anh Nguyen |
| author_sort | Chia-Nan Wang |
| collection | DOAJ |
| description | The automobile industry is one of the largest economies in the world, by revenue. Being one of the industries with higher employment output, this has become a major determinant of economic growth. In view of the declining automobile production after a period of continuous growth in the 2008 global auto crisis, the re-evaluation of automobile manufacturing is necessary. This study applies the Malmquist productivity index (MPI), one of the many models in the Data Envelopment Analysis (DEA), to analyze the performance of the world’s top 20 automakers over the period of 2015–2018. The researchers assessed the technical efficiency, technological progress, and the total factor productivity of global automobile manufacturers, using a variety of input and output variables which are considered to be essential financial indicators, such as total assets, shareholder’s equity, cost of revenue, operating expenses, revenue, and net income. The results show that the most productive automaker on average is Volkswagen, followed by Honda, BAIC, General Motors, and Suzuki. On the contrary, Mitsubishi and Tata Motors were the worst-performing automakers during the studied period. This study provides a general overview of the global automobile industry. This paper can be a valuable reference for car managers, policymakers, and investors, to aid their decision-making on automobile management, investment, and development. This research is also a contribution to organizational performance measurement, using the DEA Malmquist model. |
| first_indexed | 2024-03-10T20:28:48Z |
| format | Article |
| id | doaj.art-29e6f4d490a54ce5adc144c104dc9e38 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T20:28:48Z |
| publishDate | 2020-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-29e6f4d490a54ce5adc144c104dc9e382023-11-19T21:34:00ZengMDPI AGMathematics2227-73902020-04-018458010.3390/math8040580Malmquist Productivity Analysis of Top Global Automobile ManufacturersChia-Nan Wang0Hector Tibo1Hong Anh Nguyen2Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, TaiwanDepartment of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, TaiwanDepartment of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, TaiwanThe automobile industry is one of the largest economies in the world, by revenue. Being one of the industries with higher employment output, this has become a major determinant of economic growth. In view of the declining automobile production after a period of continuous growth in the 2008 global auto crisis, the re-evaluation of automobile manufacturing is necessary. This study applies the Malmquist productivity index (MPI), one of the many models in the Data Envelopment Analysis (DEA), to analyze the performance of the world’s top 20 automakers over the period of 2015–2018. The researchers assessed the technical efficiency, technological progress, and the total factor productivity of global automobile manufacturers, using a variety of input and output variables which are considered to be essential financial indicators, such as total assets, shareholder’s equity, cost of revenue, operating expenses, revenue, and net income. The results show that the most productive automaker on average is Volkswagen, followed by Honda, BAIC, General Motors, and Suzuki. On the contrary, Mitsubishi and Tata Motors were the worst-performing automakers during the studied period. This study provides a general overview of the global automobile industry. This paper can be a valuable reference for car managers, policymakers, and investors, to aid their decision-making on automobile management, investment, and development. This research is also a contribution to organizational performance measurement, using the DEA Malmquist model.https://www.mdpi.com/2227-7390/8/4/580data envelopment analysis (DEA)Malmquist productivity index (MPI)catch-up efficiencyfrontier-shiftproductivity indextechnological change |
| spellingShingle | Chia-Nan Wang Hector Tibo Hong Anh Nguyen Malmquist Productivity Analysis of Top Global Automobile Manufacturers Mathematics data envelopment analysis (DEA) Malmquist productivity index (MPI) catch-up efficiency frontier-shift productivity index technological change |
| title | Malmquist Productivity Analysis of Top Global Automobile Manufacturers |
| title_full | Malmquist Productivity Analysis of Top Global Automobile Manufacturers |
| title_fullStr | Malmquist Productivity Analysis of Top Global Automobile Manufacturers |
| title_full_unstemmed | Malmquist Productivity Analysis of Top Global Automobile Manufacturers |
| title_short | Malmquist Productivity Analysis of Top Global Automobile Manufacturers |
| title_sort | malmquist productivity analysis of top global automobile manufacturers |
| topic | data envelopment analysis (DEA) Malmquist productivity index (MPI) catch-up efficiency frontier-shift productivity index technological change |
| url | https://www.mdpi.com/2227-7390/8/4/580 |
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