Measuring performance of supply chains based on data envelopment analysis and multi-regional input-output analysis: An application to 18 manufacturing sectors in 43 countries

Abstract

This study developed a novel framework that combined data envelopment analysis and multi–regional input–output database to investigate the economic and environmental productivity change in the global supply chains associated with 18 manufacturing sectors in 43 countries from 2000 to 2014. Two models are developed; manufacturer model is used to evaluate performance of direct production activity of a sector in countries and supplier model is used to evaluate performance of indirect production activity of upstream suppliers of the sector. The proposed framework enables us to separately analyze the performance of supply chains into direct production activity and indirect production activity of suppliers. The empirical results show that the environmental productivity of direct production activity of 18 manufacturing sectors was improved by 12.9 percent, while the environmental productivity of the upstream suppliers was improved by only 4.7 percent during 2000–2014 on average. Different patterns of economic and environmental productivity growth were observed between the direct production activity and upstream suppliers in all sectors. The finding suggests that the performance of an entire supply chain should be separately analyzed to consider industry-specific policies. The proposed framework is used to identify countries that succeed/fail to improve economic and environmental performance. Based on the results, this study discusses policies regarding production and supply chain management toward CO2 mitigation.