Abstract
The city of Erzurum is emerging as one of the most popular jewelry centers in Turkey, principally due to itspossession of mines for precious stones, and in particular for Oltu stone. Oltu stone is paramount to theinternational image of the city, and its contribution to the local and national economy is significant. Althoughrecent studies have underscored the enormous potential of the Oltu stone industry, it is encumbent on theenterprises concerned to use their resources effectively and efficiently in order to reduce their costs, and they arealso advised to improve service quality and thus satisfy customer needs more closely. With these aims in mind,Data Envelopment Analysis provides a convenient statistical technique that enables the analyst to measure therelative efficiencies of enterprises. This linear-programming-based technique can be used to identify suggestionsfor improvement with the goal of achieving greater efficiency. This paper uses Data Envelopment Analysis toperform a relative efficiency analysis of enterprises operating in the Oltu stone industry and presents alternativeswhereby inefficient enterprises may become more efficient. The paper makes use of output-oriented CCR andBCC models to specify the scenario by calculating three different efficiency scores.
Highlights
Oltu stone is a carbon-rich semi-precious gemstone, which scores 3 for hardness and 1.5 for density on Mohs scale of mineral hardness
Recent studies have underscored the enormous potential of the Oltu stone industry, it is encumbent on the enterprises concerned to use their resources effectively and efficiently in order to reduce their costs, and they are advised to improve service quality and satisfy customer needs more closely
The survey reported in this paper considers the NACE Rev 1.1 classification of the Turkish Statistical Institute, which distinguishes 157 enterprises in the Oltu stone industry by retail and/or wholesale; in addition, this survey addresses relative efficiency measurements for 50 representative DMUs via face-to-face interview
Summary
Oltu stone is a carbon-rich semi-precious gemstone, which scores 3 for hardness and 1.5 for density on Mohs scale of mineral hardness It was used in manufacturing prayer-beads, holy chests and sculptures during the Middle Ages, and for jewelry manufacturing in the 19th century. The Oltu stone industry operates primarily in Erzurum province and Oltu district, and makes a remarkable contribution to employment and livelihood in the region, as well as engendering considerable artistic and artisanal activity (Alparslan, 2010). This valuable industry has not managed to establish a significant competitive advantage for the region, even in today’s era of advanced technology, because of ineffective government support programs. The reasons for this undesirable position can be stated quite briefly: the collapse has been associated with its failure to keep up with the present import conditions, which has seen alternative Georgian stones (known locally as “Russian stones”) penetrating the market illegally and out-competing the higher-quality Oltu stone due to their lower costs
Sign-in/Register to view highlights & summary 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.
