The Effects of Non-Controllable Factors in Efficiency Evaluation of Turkish Coal Enterprises

Abstract

In this study, which aims to examine the effects of non-controllable factors as well as input parameters on the efficiency performances of Turkish Coal Mine Enterprises, eight enterprises within Turkish Coal Enterprises (TCE) were examined. In order to keep the study as up-to-date as possible, data from the latest year (2005) was examined. For each enterprise, the outputs consisted of the amount of the production sold and the total income gained in the corresponding year; the controllable inputs consisted of investment expenditure, overburden stripping and number of staff; and non-controllable inputs consisted of total reserve and low heat values. In order to measure the effects of non-controllable inputs on enterprise efficiency, three-stage modified data envelopment analysis (DEA) model was employed. In the first stage, information concerning the efficiency of the enterprises was gained by using only the controllable inputs and outputs. In the second stage, the effects of non-controllable inputs on controllable inputs in inefficient enterprises were examined. Lastly in the third stage, the new efficiency values were calculated by means of DEA where controllable inputs and outputs modified according to non-controllable inputs were used. Considering the non-controllable inputs as a result of the analyses conducted with three-stage DEA model, it was determined that the average efficiency value of Turkish Coal Enterprises increased from 87.5% to 92.3%.