Analysis of Effect of Technology in Industries Efficiency by DEA Approach
Subject Areas : Technology ManagementEzatollah Abbasiyan 1 , Mohammad reza Dehghanpour 2 , Babak Deo mobed 3 *
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Keywords: Total Factor Productivity, Technology Level, Technical Efficiency, Technological Efficiency, Managerial Efficiency, Scale Efficiency, DEA,
Abstract :
Trend of increasing competition leads to promotion of technical economy. Cost reduction and quality improvement has been introduced as bases for survival in global markets. What make this easier and accelerate it, are technical changes and improving efficiency and productivity. On the one hand, technology has a special position in theories of economic growth and in regard to constraints in economy and optimal use of available resources has an important role. Technology is divided into different levels with different features and effects. One of these effects is the differences of efficiency between the different levels of technology that this paper intends to compare the efficiency of industries with different technologies. For this purpose, data from firms with 10 employees or more from Iran Statistical Center has been used. In this study, the efficiency of industries with various technology levels (high tech industries, medium tech industries and low tech industries) using data envelopment analysis (DEA) has been measured. Industries with different technologies have different production functions, so in order to estimate production functions of these industries, econometric panel data method has been used. Results of the research indicate that managerial efficiency of low technology industries, in comparison with other industries, is lower and technical efficiency of high technology industries is lower than other industries. However, industries with medium level of technology have appropriate level of technical efficiency, technological efficiency, and managerial efficiency and also scale efficiency.