Efficiency of materials management in the European Union

Abstract

Purpose The purpose of this paper is to measure and evaluate the efficiency of materials management in the European Union countries (EU-28) during the period of 2008–2017. Design/methodology/approach The study was conducted using the method of data envelopment analysis (DEA) and variables applied to determine the resource productivity indicator. Therefore, the components of domestic material consumption constituted inputs in the DEA method, while gross domestic product (GDP) was applied as an output. Findings The results of the analysis showed that the Netherlands, Luxembourg, Latvia and the UK are the efficiency leaders among all the member states of the European Union. One of the least efficient countries is Poland, which uses too much natural resources in the process of generating goods and services. However, this consumption is growing at a slower rate than the value of GDP, which is beneficial from the point of view of sustainable development. Poland, like other inefficient countries, should reduce its consumption of natural resources in line with the best international practices. Practical implications The obtained research results can be a valuable source of information for decision-makers, and contribute to the adoption of more effective policies in order to improve the relationship between materials consumption and economic growth. Originality/value The application of the DEA method for calculating the efficiency of materials management represents a new approach, and it is the first attempt of its kind in the European Union countries.