Benchmarking the efficiencies of Indonesia’s municipal water utilities using Stackelberg data envelopment analysis

Achieving Sustainable Development Goals. Efficiency in the Spanish Clean Water and Sanitation Sector

In recent years, achieving the Sustainable Development Goals (SDGs) is becoming a major challenge for local governments. This research focuses on the role of Spanish local governments in the fulfillment of SDG-6, which aims to ensure the availability and sustainable management of water and sanitation for all citizens. Specifically, this study analyses the evolution of the efficiency of Spanish local governments, and its determining factors, in the achievement of the SDG-6. The results indicate that the taxes associated with water supply and sanitation services, the private management of these services, population density, local government budget revenues, the income of the inhabitants of the municipality and the fragmentation of local governments are factors that can improve the evolution of the efficiency of Spanish local governments in achieving the SDG-6.

Operational Efficiency of Mexican Water Utilities: Results of a Double-Bootstrap Data Envelopment Analysis

The objective of this paper is to estimate the operational efficiency of Mexican water utilities and identify the context variables that impact their efficiency. In particular, a bootstrap data envelopment analysis (DEA) and a bootstrap truncated regression analysis are combined in a two-stage research method. In the first stage, an input-oriented DEA model is used to determine bootstrap efficiency scores. Then, the corrected distribution function of the efficiency scores is used to estimate a truncated regression which is aimed to identify the significant influential context variables. Three categorical and two continuous context variables are considered in the analysis. Results show that only one context variable has a significant impact on the water utilities efficiency scores. Managerial recommendations are drawn from the analysis. It is suggested that water utilities continue or implement wastewater treatment, persist in decreasing and controlling leakage across the distribution network, and maximizing sewer coverage.

Benchmarking the international compulsory education performance of 65 countries and economies

Purpose

The Program for International Student Assessment (PISA) measured 15-year-olds’ performance in mathematics, reading, and science. The purpose of this paper is to use the assessment results of PISA 2006, 2009, and 2012 to benchmark the compulsory education performance of 65 countries and economies with emphasis on two benchmarking steps: identifying benchmarks and determining performance gaps.

Design/methodology/approach

The authors use a multi-criterion and multi-period performance categorization method to identify a group of best performers as benchmarks. Then, the authors use two-sample t-tests to detect against benchmarks whether each country or economy has significant performance gaps on individual performance measures.

Findings

Based on the mean scores of three assessment subjects in PISA 2006, 2009, and 2012, six best performers (Top-6) are identified from 65 participating countries and economies. In comparison with Top-6’s weighted averages, performance gaps are found for most countries and economies on the mean score of each subject, the percentage of top-performing students in all three subjects, and the percentage of lowest-performing students in each subject.

Originality/value

For compulsory education systems around the world, this paper provides an original categorization of performance based on the results of three PISA cycles, and provides new insights for countries and economies to prioritize improvement efforts to increase average performance, pursue excellence, and tackle low performance. For benchmarking applications involving multi-criterion and multi-period data, this paper presents a novel method of using statistical control charts to identify benchmarks and then using two-sample t-tests to determine performance gaps on individual performance measures.

Assessing the productivity change of water companies in England and Wales: A dynamic metafrontier approach

The assessment of productivity change and its drivers across water companies and over time is a powerful tool for both regulators and companies when setting water tariffs. Water and sewerage companies (WaSCs) and water only companies (WoCs) provide different services. Hence, their productivity change cannot directly be evaluated jointly. In this paper and for the first time, we provide a pioneering approach to assess and compare the dynamics of productivity change of WaSCs and WoCs. To achieve this, both the traditional Malmquist productivity index and the metafrontier Malmquist productivity index and its components are computed to assess the productivity change for a sample of English and Welsh water companies over the period 2001-2014. The findings from both indices indicate that productivity for both WaSCs and WoCs did not improve during this period, mainly due to the negative shift in the production frontier which offset the positive effect of efficiency change. It is also reported that the performance of the WoCs over time was slightly better than that of the WaSCs. Finally, our study provides some insights into the relationship between productivity change and the regulatory cycle. This information is essential to improve the regulation of water and sewerage services, contributing to the long-term sustainability of the urban water cycle.

Multi-criterion and multi-period performance benchmarking of products and services

Purpose

A product or service usually has multiple measurable characteristics, and its performance on different measures may vary and may change over time. Multi-criterion and multi-period performance benchmarking presents a challenge for management to determine performance gaps among comparable products or services. The purpose of this paper is to propose a new performance benchmarking method to address this challenge.

Design/methodology/approach

The author develop this method by formulating two benchmarking functions: a differentiation function based on Shewhart average and standard deviation charts to distinguish the performance of products or services on a single measure, and a categorization function to classify each product’s or service’s overall performance across all measures. By systematically removing the lowest-performing products or services from comparison, the author use these functions iteratively to detect performance gaps.

Findings

Using this method, the author find performance gaps in each of three benchmarking applications of airports, hotels, and minivans, although a number of performance gaps are not obvious from the raw data.

Research limitations/implications

This benchmarking study focuses on the quantifiable outcome performance of products and services.

Practical implications

This benchmarking method is generic and applicable to most products and services. It is robust not only for discovering performance gaps, but also for providing useful insights for managers to prioritize improvement efforts on individual performance measures.

Originality/value

The novelty of this benchmarking method lies in that it can not only find the “best overall” products or services for all performance measures, but can also pinpoint the “best-in-class” products or services as well as performance gaps for each performance measure. In addition, this paper presents several original ideas for performance benchmarking, including: using the control limits of Shewhart control charts to categorize performance gaps, systematically removing the lowest-performing products or services from comparison for the purpose of detecting hidden performance gaps, and using symbolic expressions to integrate benchmarking results from all measures and to show all performance gaps intuitively.

International performance benchmarking in winemaking

Purpose

The purpose of this paper is to study winemaking efficiency with the help of international performance benchmarking and to finding ways for its improvement.

Design/methodology/approach

In this research, three models of data envelopment analysis (DEA) and other tools of international performance benchmarking are used to analyse the efficiency of wine companies. Return to scale (RTS) and scale efficiency, labour and capital productivity and some other indicators are examined. The research is based on a sample of 36 wine companies from 15 countries.

Findings

International benchmarking expands performance improvement for domestic companies. The most efficient wine companies are originated from Germany, USA and New Zeeland. Scale inefficiency and increasing RTS for most of the wine companies was identified. Only three wine companies have decreasing RTS (those from UK, Australia and France). To increase relative efficiency, these companies need to reduce the output and sales as their costs are growing faster than the revenues. A huge potential for cost reduction and efficiency growth within Ukrainian wine companies was revealed.

Research limitations/implications

The research is limited to a single industry. This is explained by the requirement of technology (product, service) homogeneity while using DEA tools.

Practical implications

Study results include the data and recommendations to develop winemaking. These results can be used by wine companies’ management, present and potential investors and proprietors, regulative public authority, e.g. to improve efficiency in winemaking.

Originality/value

This is the first paper that adapts various DEA models to measure efficiency in the wine industry of Ukraine and the tools of international performance benchmarking for wine companies around the world.