The management bases of Metropolis Primary Agricultural Cooperatives (MPACs) have been largely not only threatened by drastic decrease of the agricultural population, but also the management conditions of the MRACs whose credit businesses are being co...
The management bases of Metropolis Primary Agricultural Cooperatives (MPACs) have been largely not only threatened by drastic decrease of the agricultural population, but also the management conditions of the MRACs whose credit businesses are being concerned about decrease in profits of mutual finance are being rapidly changed by strengthened competition of opening capital market and the enlarged size of other financial institutions. Therefore, MPACs preferentially require objective and general evaluation for management achievement to cope with change of management environments although they have attempted various methods.
In this investigation, we evaluated comprehensiveness and objective management performance of one hundred and two MPACs using models of DEA(Data Envelopment Analysis) and AHP(Analysis Hierarchy Process). With these evaluation and analysis, we determined not only the priority business orders for future direction of Regional Agricultural Cooperatives, but also suggested a direction to improve the inefficient MPACs.
The research results are as follows:
First, the average technical efficiency ratio of one hundred and two MPACs in 2005 is 86.2% while inefficiency ratio of the input side is 13.8%.
Second, The influence of the technical efficiency on the management efficiency is much stronger than that of the scale efficiency.
Third, the pure technical efficiency of the rural Agricultural Cooperatives is much higher than that of the urban Agricultural Cooperatives. The higher inefficiency of the urban Agricultural Cooperatives which do not accomplish economy of scale than that of the rural Agricultural Cooperatives meant that the urban Agricultural Cooperatives have much higher inefficiency. Also, excess investment problem for the input side is much more serious in the urban Agricultural Cooperatives than in the rural Agricultural Cooperatives
Fourth, an officer prefers to extend business scale by focusing credit & mutual-aid business in determining MPACs future among MPACs' businesses while the representatives regard businesses closely related to regional specific character.