Abstract
AbstractThis paper presents a new application of Inverse data envelopment analysis (InvDEA) for strategic decision making: mergers & acquisitions (M&A) in the agricultural sector. Given a set of agricultural farms, the decision maker is interested in estimating the potential gains that are likely to result from the merger of two or more farms, as well as the redistribution of inputs among the merging farms, for an efficiency target set a priori for the post-merger farm. Using a sample of greenhouse (GH) farms from the Batinah region (Oman), an InvDEA approach is applied to investigate pairwise consolidations among GH farms and determine the level of inputs required for a merger to achieve full efficiency. Moreover, a DEA-based approach is introduced for selecting the best partners of a merger based on pertaining potential gains. The results highlight the importance of mergers as a strategic option for an efficient management of resources in the agricultural sector, especially scarce resources, like water and electricity.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
