The urban transport companies in Spain: analysis of efficiency with data envelopment analysis
Fecha
2024-12-16
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Emerald
Resumen
Purpose – This paper aims to define the efficiency achieved by urban transport companies in Spain concerning the resources they use, considering the type of management used for implementation, public-private, and size.
Design/methodology/approach – This study consisted of an analysis of the efficiency of 229 public-private urban transport operators during the period 2012–2021 using Data Envelopment Analysis, the Malmquist Index and inference estimators to determine productivity, efficiency change into Pure Technical Efficiency Change (PTECH), and scale efficiency change.
Findings – Based on the efficiency analysis, the authors concluded that of the 229 companies studied, more than 35 were inefficient in all analysed periods. Considering the sample used, direct management is considered
significantly more efficient. It cannot be concluded that the size of these companies influences their efficiency, as the data show unequal development behaviours in the studied years.
Originality/value – This study provides arguments on whether there is a significant difference between the two types of management in the urban transport sector. It also includes firm size as a study variable, which has not been previously considered in other studies related to urban transport efficiency. Efficiency should be a crucial factor in determining funding allocation in this sector, as it encourages operators to optimize and improve their services.
Descripción
Urban transport services are considered essential strategic sectors both for the overall
development of the economy and for being a tool that ensures mobility and sustainability in
cities. The bus is the most used surface transport to achieve that goal (European Commission,
2001; Fitzov a et al., 2018). The changes in displacement derived from the pandemic and the
emergence of new modes of transport have affected its use (Aloi et al., 2020; Awad-N u~nez
et al., 2021), making necessary a significant investment by public operators to improve its
attractiveness in a highly subsidized sector (Fitzov a et al., 2018).
In this sense, measuring efficiency and calculating its performance is one of the most
reviewed concepts in the literature (De Borger et al., 2002; Holmgren, 2013; Pina and Torres,
2001; Sampaio et al., 2008). Measurement cannot be linked to a single concept of efficiency,
and there is no clear consensus on what factors favourably influence when assessing
efficiency.
For this reason, the main objective of this work is to measure the efficiency of
transportation companies in the study period, considering the size of the company and the
type of management (public, direct-private or indirect).
To achieve the stated objectives, we have used the non-parametric method, Data
Envelopment Analysis (from now on DEA) and the Malmquist index (MPI), as they are the
most widely used techniques in the analysis of efficiency in this field (De Borger et al., 2002;
Jord a Lope, 2012; Pina and Torres, 2001). We have incorporated a variable that has been little
analysed in studies of efficiency in the sector, such as the size of the companies, which,
however, the general literature suggests is significant according to sectors (Al Yami et al.,
2021; Halkos and Tzeremes, 2007), instead of the size of the city where the service is provided,
which is an exogenous variable and, on some occasions, independent of the type of company
and the supply offered. Similar to other analyses, the type of management is included as a
variable affecting transport efficiency (Campos-Alba et al., 2020; Georgiadis et al., 2014;
Nolan, 1996; Pina and Torres, 2001).
The paper is structured as follows: Section 2 reviews what the literature says about the
importance of urban and suburban transportation, the efficiency in the sector, and the
methodology used to analyse efficiency, ending with the hypotheses to be tested in our work.
Section 3 explains the methods used to calculate efficiency, the sample and the variables used.
Section 4 analyzes the analysis results and ends in Section 5 with the study discussion and the
main conclusions.
As a result of our research, we can observe ample room for improvement in urban
transport companies. On the one hand, there is a significant difference between direct and
indirect management, the former being more efficient. On the other hand, although there is a
considerable efficiency evolution between companies, it cannot be concluded that the size of
these companies affects their efficiency, as the data show unequal evolution behaviours in the
years of study.
Our study enhances the literature’s contribution regarding efficiency, considering that we
analyse by size and employ variables not utilized hitherto. Moreover, the sample size is more
significant, adding robustness to our findings. By exploring novel dimensions and
incorporating a more extensive dataset, our research expands the understanding of
efficiency dynamics, offering valuable insights for future studies in this domain. In this sense,
our work allows us to know how the events of the last ten years have affected efficiency in the
sector, as well as define the criteria for achieving efficient transportation. Considering that
efficiency should be a crucial factor in determining the allocation of financing in the sector
since many countries are reformulating their current transportation systems for more
efficient modes, as is the case with the United Kingdom (Vickerman, 2021) as it encourages
operators to optimize and enhance their services (Li et al., 2020). Likewise, the study applies to
many companies offering services by analysing the Spanish national scope, not limiting the
Urban
transport
companies in
Spain
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conclusions to a regional scope (Pina and Torres, 2001; Roy and Yvrande-Billon, 2007). In this
way, the conclusions are relevant for concessionary companies and public administrations
related to the urban transport sector in Spain.
Palabras clave
Citación
Flores-Ureba, S., Simon de Blas, C., Sánchez Toledano, J. I., & Sánchez de Lara, M. Á. (2024). The urban transport companies in Spain: analysis of efficiency with data envelopment analysis. European Journal of Innovation Management, 27(9), 150-172.
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