Assessment of Cluster Benefits to Increase Financial Performance of Companies: Malmquist Index Approach
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Date
2018
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Journal ISSN
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Publisher
MatfyzPress
Abstract
Cluster organizations are one of the tools to support regional innovation
performance. The creation and development of clusters is supported by the EU
Structural Funds. The issue of efficient use of public resources is therefore very important. The aim of the article is to determine whether member companies of the
cluster organization in the technical textiles sector achieve better financial performance in the time series 2009-15 than companies operating in the same industry, the
same region; however they are not members of a cluster organization. The first sample includes 16 members of the cluster organization. The second sample consists of
45 companies from the Northeast Cohesion Region doing business in the technical
textiles sector. Data envelopment analysis with three inputs and one output was used
to evaluate the efficiency. Inputs are employee numbers, total assets and capital employed, and output is economic value added (EVA). Since EVA has both positive
and negative values, a variant of the radial VRM model was used. For both samples
and periods, the Malmquist index values were calculated. The Malmquist index
breaks down the overall change in factor performance into two components - to
technical efficiency change and to technological change. The research has shown a
more significant improvement in financial performance at companies in cluster
compared to other industry sectors. Improvement in performance was driven mainly
by technological change, it means by shifting the efficient frontier.
Description
Subject(s)
Malmquist index, VRM model, cluster of technical textiles, economic value added, financial performance
Citation
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ISBN
978-80-7378-372-3