Measuring comparative efficiencies and merger impacts of wireless communication companies

Purpose - The purpose of this study is to benchmark the wireless mobile communication service providers in the USA for the relative efficiencies of assets and expenses in conjunction with revenues. In addition, the impact of merger activities on the efficiencies will be investigated.Design methodolo...

Full description

Saved in:
Bibliographic Details
Published in:Benchmarking : an international journal 2008-05, Vol.15 (3), p.212-224
Main Authors: Kwon, He-Boong, Stoeberl, Philipp A, Joo, Seong-Jong
Format: Article
Language:English
Subjects:
Acquisitions & mergers
Acquisitions and mergers
Benchmarking
Benchmarks
Best practice
Communication
Data envelopment analysis
Efficiency
Financial management
Investigations
Linear programming
Mathematical models
Mathematical programming
Mobile communications networks
Nonprofit organizations
Resource efficiency
Software
Statistical analysis
Strategic management
Studies
Telecommunication services
Telecommunications industry
United States of America
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Purpose - The purpose of this study is to benchmark the wireless mobile communication service providers in the USA for the relative efficiencies of assets and expenses in conjunction with revenues. In addition, the impact of merger activities on the efficiencies will be investigated.Design methodology approach - The authors use data envelopment analysis (DEA) to measure comparative efficiencies of wireless mobile communication companies. Data include annual reports showing assets, expenses, and revenues.Findings - For the relative efficiencies of total asset utilization, eight decision-making units (DMU) out of 16 are 100 percent efficient. Likewise, seven DMU's are 100 percent efficient in the current asset model. However, only five DMU's are 100 percent efficient in the expense model. Accordingly, the companies maintain relatively higher efficiencies for asset management than those for expense management. Merger activities adversely affect the efficiencies of the companies in the models. Thus, the companies need to make stronger efforts to improve their efficiencies after consolidation.Research limitations implications - This study is subject to the limitations of financial data and DEA that measures relative technical efficiencies of DMU. Results will vary according to data and DMU included in the model.Originality value - The major contributions of this study are that this is the first attempt of benchmarking using DEA in the wireless telecommunication industry in the USA and its investigation of the impact of merger and acquisition activities on efficiencies.
ISSN:1463-5771
1758-4094
DOI:10.1108/14635770810876566