Evaluating Efficiency of Pharmaceutical Companies and Their Ranking via Data Envelopment Window Analysis

Document Type : Original Article

Authors

1 Associate Professor of the School of Economy, Management and Social Sciences of Shiraz University.

2 M. A. Student in Production and Operation Management, Shiraz University

Abstract

Introduction: The purpose of this study is to evaluate the efficiency of pharmaceutical companies and drug manufacturers registered in Stock Exchange by using non-parametric methods. Measuring the pharmaceutical companies’ efficiency and comparing their performance have an important role in elevating their efficiency and productivity, and it serves as a basis for their planning.
Method: One of the commonly-used methods for measuring productivity of similar units is Data Envelopment Analysis. Despite its advantages, it is not capable of measuring efficiency when the number of decision-making units is low. Thus, by using Data Envelopment Analysis Window Analysis, the number of decision-making units increases, and it is possible to measure the efficiency of organizations better. In this study, by using Data Envelopment Window Analysis between 2008 and 2012, the efficiency of pharmaceutical companies registered in Stock Exchange will be determined.
Results: In this research, pharmaceutical companies were ranked according to their efficiency scores. Based on the results of this study, Sobhan pharmaceutical company allocated the highest efficiency score during 2008-2012 to itself.
Conclusion: Given the results of the study concerning the efficiency or inefficiency of the units, the managers of Sobhan pharmaceutical company, which was found as the most efficient company within 2008-2012 in the current study, should move toward higher efficiency in total, and the managers of inefficient companies should move toward relative efficiency by model their leading companies.

Keywords

References

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Journal of Health Accounting
Volume 2, Issue 3 - Serial Number 5
September 2013
Pages 23-39

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