Measuring Profitable Efficiency, Technical Efficiency, Technological Innovation of Waste Management Companies Using Negative Super-SBM–Malmquist Model

Abstract

In recent decades, waste generation has increased gradually because of the development of the quantity and size of businesses, together with the high growth rate of the population. However, in 2019, like other industries, the waste management industry was affected by the COVID-19 pandemic, particularly in relation to aspects concentrated on strategy. Subsequently, appropriate waste management in all aspects of the community, specifically for waste management enterprises, was demanded. This research aims to assess the profitable efficiency, position, technical, and technological innovation and compare the global major waste management corporations by integrating the negative super-slacks-based measure model and the negative Malmquist model in data envelopment analysis. Various inputs and outputs are initially selected from nine waste management companies’ financial statements from 2017 to 2020, including negative values, to attain their performance. The empirical results indicated that waste management companies’ managers could make better investment or strategy decisions for superior performance. At the same time, collaborators from other sectors could find their potential partners in the waste management industry. In general, considering the efficiency, Veolia Environment (DMU3) and Heritage-Crystal Clean Company (DMU8) were the most efficient companies. Meanwhile, Covanta Holding (DMU2) and Republic Services Corporation (DMU5) required additional development to improve their performance. Besides, because of the disparity in technical and technological innovation, most decision-making units could not achieve consistent improvement in terms of technical, technological change, and total production.