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Journal ArticleDOI

Exploring the factors of efficiency in German and Ukrainian wineries

Anatoliy G. Goncharuk1
04 Oct 2017-Journal of Wine Research (Routledge)-Vol. 28, Iss: 4, pp 294-312
TL;DR: In this article, the authors evaluated and compared the efficiency of winemaking in Germany and Ukraine in order to find the key factors of efficiency of wine business in these countries, including returns to scale, scale efficiency, super-efficiency and some other indicators.
Abstract: The paper is devoted to the evaluation and comparison of the efficiency of winemaking in Germany and Ukraine in order to find the key factors of efficiency of wine business in these countries. The models of data envelopment analysis (DEA), correlation and other tools of data analysis are used to analyse the efficiency of wineries in two countries. Returns to scale, scale efficiency, super-efficiency and some other indicators are examined. The study is based on the sample including 36 wineries of Germany and Ukraine. The hypothesis about a higher relative efficiency of winemaking in Germany in comparison with Ukrainian winemaking was confirmed analytically. Relatively a high average scale efficiency score indicates a good potential (above 30%) for efficiency growth due to the optimization of a scale of production and sales. Generally, winemaking in Germany and Ukraine has increasing returns to scale. It was found to be the most efficient combination of the size and legal form of business organization for wine business in Germany.
Citations
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MonographDOI
07 Sep 2018
TL;DR: Theory of state and law as mentioned in this paper is a textbook designed for students enrolled in the specialty "Jurisprudence", postgraduates and lecturers of law universities and faculties and anyone interested in legal issues.
Abstract: The content of the textbook consistently reveals the necessary definitions, history and research methods of the discipline "Theory of state and law" in accordance with the work program. This publication is prepared in accordance with the requirements of the Federal state educational standard of higher education of the last generation. The textbook is designed for students enrolled in the specialty "Jurisprudence", postgraduates and lecturers of law universities and faculties, and anyone interested in legal issues.

44 citations

Posted Content
TL;DR: The authors allocated the basic groups of the current challenges of wine business: global challenges including changes in climate, consumer preferences; regional (local) challenges concerning specific problems in each wine region (country).
Abstract: This paper allocated the basic groups of the current challenges of wine business: global challenges including changes in climate, consumer preferences; regional (local) challenges concerning specific problems in each wine region (country). For each group author held a brief overview with cases from the recent publications.

6 citations

Journal ArticleDOI
TL;DR: In this paper, a systematic literature review (SLR) was conducted to identify the main firm-level performance indicators and group them in dimensions that support decision-making in the wine industry.
Abstract: The purpose of this paper is to conduct a systematic literature review (SLR) to identify the main firm-level performance indicators and group them in dimensions that support decision-making in the wine industry.,To achieve this goal, an SLR approach was conducted in the Scopus database from 2009 to 2019. From a set of 607 articles, only 25 studies related to firm-level performance indicators were considered and, following an inductive thematic analysis and an interpretative synthesis, separated into different specific foci that include social, economic and environmental dimensions.,There is a limited number of papers identifying indicators regarding the firm-level performance of wine firms, and even fewer studies including indicators on an integrated approach to measure the different dimensions of firm performance. This paper documents that economic and environmental indicators cover 78.2% of all SLR indicators analyzed. As this group of indicators is limited to a set of sub-dimensions, this paper found that several groups of indicators are misrepresented, such as product portfolio or certifications related to marketing activities and indicators covering purchasing and supply chain activities, which play a crucial role in the competitiveness of the wine industry.,For practitioners, it discloses the most pertinent indicators they need to improve to craft their business strategies. This framework is of added value for policymakers to customize their support programs for specific producers to develop their competitive strategies. It could be deployed in teaching programs as a tool to address the importance of aligning different types of indicators to achieve firm-level performance in the wine industry.,This study contributes to the literature identifying a framework of analysis that includes indicators of four dimensions, namely, economic, social, territorial and environmental. This framework aims to relate performance measures to corporate strategy as a management control tool. The framework intends to improve the fit between firms’ activities and their competitive context and to be flexibly adapted to various products/firms in the wine industry.

6 citations

Journal ArticleDOI
TL;DR: In this paper, the authors applied a three-stage approach to explore productivity, efficiency, and profitability changes in winemaking in the recent decade, and found that despite the efficiency crisis in Ukrainian wine making, the positive contribution of technological progress provided its productivity growth.
Abstract: The purpose of this paper is to find how much the efficiency of winemaking has changed since the crisis of 2008 and what are the main determinants of winemaking performance in the recent decade.,This study applied a three-stage approach to explore productivity, efficiency and profitability changes. At the first stage of the empirical study, the Malmquist Total Factor Productivity indexes based on the data envelopment analysis are used to reveal tendencies of wineries’ productivity and the reasons for its changes. At the second stage, productivity indexes were used to find out the main exogenous and endogenous factors. At the final stage, the profitability change after the crisis in the context of the wine types and a size of wineries is explored.,The main trends and factors of winemaking performance after 2008 were defined. It was found that a crisis in winemaking in Ukraine has been going on for almost decade with the greatest failure in 2014 that led to the falling overall efficiency. This failure was caused mainly by the military and political factors regarding the annexation of Crimea by Russia, the changes in consumer behaviour with a tendency to reduce overall alcohol consumption, and the government regulation increased excise duties on wines. Despite the efficiency crisis in Ukrainian winemaking, the positive contribution of technological progress provides its productivity growth. The small- and medium-sized enterprises in winemaking have a high resistance to the crisis and fiscal pressure. Despite it losing a half of value-added and being unprofitable, the small wine business has managed to increase the labour and capital productivities and overtake big wine business on these indicators.,This study is limited to one country and the relatively small sample of the wineries. However, it can be a starting point for a series of research on the development of anti-crisis winemaking strategy.,The findings of the study can be helpful for the Ukrainian Government to prevent crisis continuation in the winemaking sector. This case may be instructive for other countries, faced with a protracted crisis of efficiency in winemaking.,This is the first study that examines the winemaking performance and its factors after the world financial crisis, based on the case of Ukraine.

6 citations

Posted Content
TL;DR: In this article, the authors proposed a management over the development of agricultural markets, agrarian, ecological logistics in the system of food safety, which was carried out within the context of tasks of the scientific project.
Abstract: The research was carried out within the context of tasks of the scientific project: “Management over the development of agricultural markets, agrarian, ecological logistics in the system of food safety”, No. ID: 64770 26.08.2016 (00009-1). The project was recommended by the National Council of the Ministry of Education and Science of Ukraine for financing at the expense of the state budget.

4 citations

References
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Journal ArticleDOI
TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.

25,433 citations

Journal ArticleDOI
TL;DR: The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs as mentioned in this paper.
Abstract: In management contexts, mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best. In this capacity, mathematical programming serves as a planning aid to management. Data Envelopment Analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments, however they may have been planned or executed. Mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities. The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs. A separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of DEA directly on observational data. Technical inefficiencies are identified with failures to achieve best possible output levels and/or usage of excessive amounts of inputs. Methods for identifying and correcting the magnitudes of these inefficiencies, as supplied in prior work, are illustrated. In the present paper, a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing, constant or decreasing returns to scale in multiple input and multiple output situations. The results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with "contestable market theories."

14,941 citations


"Exploring the factors of efficiency..." refers methods in this paper

  • ...Scale efficiency can be defined with the use of the following ratio: SE = TECRS TEVRS , (2) whereTECRS is the technical efficiency score for the CRS model and TEVRS is the technical efficiency score for the variable return of scale (VRS) model (for the VRS model form see Banker et al. 1984)....

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Journal ArticleDOI
TL;DR: In this paper, a modified version of DEA based upon comparison of efficient DMUs relative to a reference technology spanned by all other units is developed, which provides a framework for ranking efficient units and facilitates comparison with rankings based on parametric methods.
Abstract: Data Envelopment Analysis DEA evaluates the relative efficiency of decision-making units DMUs but does not allow for a ranking of the efficient units themselves. A modified version of DEA based upon comparison of efficient DMUs relative to a reference technology spanned by all other units is developed. The procedure provides a framework for ranking efficient units and facilitates comparison with rankings based on parametric methods.

3,320 citations


"Exploring the factors of efficiency..." refers methods in this paper

  • ...In the first stage, DEA constant returns to scale (CRS) (Charnes et al., 1978) and superefficiency (Anderson and Petersen, 1993) models are used to estimate efficiency of the wineries and fully rank them....

    [...]

  • ...efficiency (Anderson and Petersen, 1993) models are used to estimate efficiency of the wineries and fully rank them....

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Posted Content
01 Jan 2007

1,195 citations