An evaluation of technical efficiency and managerial correlates of solid waste management by Welsh SMEs using parametric and non-parametric techniques

J J Cordeiro, J Sarkis, D Vazquez-Brust, L Frater and J Dijkshoorn
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J J Cordeiro: State University of New York, Brockport, USA
J Sarkis: Clark University, Worcester, USA
D Vazquez-Brust: Cardiff University, Cardiff, UK
L Frater: Cardiff University, Cardiff, UK
J Dijkshoorn: Cardiff University, Cardiff, UK

Journal of the Operational Research Society, 2012, vol. 63, issue 5, 653-664

Abstract: Strong economic growth and environmental regulation stimulus make Welsh small and medium enterprises' (SMEs) sustainability performance merit investigation in the context of European Union (EU) sustainability initiatives. This is due in part to strong economic growth and the stimulus provided by environmental regulation. We use stochastic frontier analysis, a parametric econometric technique to generate estimates of the technical efficiency of solid waste management by 299 Welsh SMEs in 2003. We demonstrate that the ranking and efficiency scores of the Welsh SMEs studied correlate significantly with non-parametric data envelopment analysis efficiency measures and are related to the use of environmental auditing practices and the use of local business support groups, but not to monitoring of waste expenditures and publication of environmental policies.

Date: 2012
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