Revisiting firm flexibility and efficiency: evidence from the EU dairy processing industry
Author / Producer
Date
2020-07
Publication Type
Journal Article
ETH Bibliography
yes
Citations
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Data
Rights / License
Abstract
We analyse the flexibility of EU dairy processors to adjust production to fluctuating economic conditions. For a set of 2,186 firms, we derive production flexibility measures representing the effect of output variations on costs. The results reveal that flexibility is highest in Poland and Italy and lowest in Spain. Several firm-specific factors, such as size and age of the firm, are found to affect firm flexibility. Moreover, we detect a tradeoff between flexibility and technical efficiency for large firms indicating that a sole focus on firm efficiency can be insufficient. Finally, the results show that during economic crisis flexibility can help to sustain profitability.
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Publication status
published
External links
Editor
Book title
Journal / series
Volume
47 (3)
Pages / Article No.
971 - 1008
Publisher
Oxford University Press
Event
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
production flexibility; flexibility-efficiency tradeoff; financial crisis; dairy industry
Organisational unit
09564 - Finger, Robert / Finger, Robert
Notes
It was possible to publish this article open access thanks to a Swiss National Licence with the publisher.
Funding
Related publications and datasets
Is supplemented by: https://doi.org/10.3929/ethz-b-000333174