Are ERDF Devoted to Boosting ICT in SMEs Inefficient? Insights Through Different DEA Models

Abstract

AbstractWe evaluated the execution of operational programs (OPs) targeted at increasing the adoption of information and communication technologies (ICT) in small and midsize enterprises (SMEs). As a result, we employed two different data envelopment analysis (DEA) models to evaluate 51 OPs from 16 countries, contemplating data provided to the European Union (EU). All in all, we observed that almost 20% of the OPs (10) achieved efficient procedural outcomes, with the slack-based method (SBM) and with the weighted Russel Directional Distance model (WRDDM), respectively. Two of the OPs most frequently viewed as benchmarks were in Spain (the country that uses “vouchers” simplifying processes), remaining robustly efficient for data perturbations of 5% and 10%. The ‘number of operations supported’ is the metric that necessitates more consideration according to both models. Overall, these findings show the robustness of results with both methods, highlighting a higher discriminatory power of the second method, particularly for inefficient OPs. Finally, the unsuccessful findings attained might be linked to bureaucratic procedures and SMEs’ incapacity to deal with the complicated processes involved in obtaining and implementing European Regional Development Fund (ERDF) proposals. As a result, it is critical to provide the extra help that reduces managerial requirements while also meeting the demands of SMEs.