Abstract
Industry sustainability plays a vital role in shaping the environment for cultural and creative business development. However, considering the influence of the external environment and random factors on the technical efficiency (T.E.) of cultural and creative industries with the inherent defects of the traditional data envelopment analysis (DEA) model; this manuscript analyzed the operating efficiency of 56 cultural and creative enterprises using the three-stage DEA model from 2012 to 2018. An analysis of the results shows that differences in efficiency exist between stage one and stage three DEA. Furthermore, the environmental elements and statistical noise measured by the stochastic frontier analysis (SFA) in stage two reveal positive and negative influences on the creative cultural enterprises at different stages. As a result, the overall efficiency of the listed cultural and creative industries was revealed to be low in China. Finally, this study suggested effective countermeasures and recommendations for better-operating efficiency systems for cultural and creative enterprises.
Highlights
The Cultural and Creative Industries (CCIs) in the 21st century have attracted global attention with their unique qualities and astonishing growth (BOP, 2010; Puchta et al, 2010; Johnson et al, 2019; Mazilu et al, 2020)
In stage two, the authors of this study applied the stochastic frontier analysis (SFA) model to eliminate the brunt of environmental elements and statistical noise found in the traditional data envelopment analysis (DEA) model of the study
Analysis derived from the sub-sectors perspective indicated that the efficiency of cultural leisure and entertainment enterprises was recorded lower than the overall efficiency
Summary
The Cultural and Creative Industries (CCIs) in the 21st century have attracted global attention with their unique qualities and astonishing growth (BOP, 2010; Puchta et al, 2010; Johnson et al, 2019; Mazilu et al, 2020). Current statistics indicate that China represents a leading CCI in Asia and recorded € 50.32 billion in revenue resulting in 2.45% of her GDP and a growth of 6.4% progress of the economy in general (Li and Ju, 2020). Referring to the National Bureau of Statistics Records in 2017, the added worth of China’s CCIs accounted for more than 4% of GDP, with a highly dynamic performance during the period. A statistical report shows that while the CCI scale has expanded and revenues have increased (National Bureau of Statistics of China [NBSC], 2020), about 56 out of 132 cultural-related enterprises representing 42.42% were disclosed as negative growth in net profits in the 2016 annual report in China (Yongfen et al, 2020)
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