Measuring strategic decision making efficiency in different country contexts : a comparison of British and Turkish firms

Demirbag, Mehmet and Tatoglu, Ekrem and Glaister, Keith and Zaim, Selim (2010) Measuring strategic decision making efficiency in different country contexts : a comparison of British and Turkish firms. Omega, 38 (1-2). pp. 95-104. ISSN 0305-0483

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Abstract

This paper compares the relative efficiency of the strategic decision making (SDM) processes of British and Turkish firms. The technique of data envelopment analysis (DEA) is used to measure the relative efficiency of these firms. The evidence obtained by the DEA analysis reveals that the Turkish firms tend to be superior to the British firms in terms of their SDM efficiency. There is a significant difference in scale returns with respect to the country of origin of the firms. The analysis of the improvement potential of inputs indicates that Turkish firms place more emphasis on managing environmental turbulence to enhance their SDM efficiency, while British firms tend to overly focus on the design of an appropriate organizational structure. However, no significant difference was noted between the two groups of firms with regard to the level of resources and effort exerted on formal strategic planning practices. The analysis of output deficits reveals that there is a significant difference between British and Turkish firms in the sources of inefficiency.