Title: A study of the relative efficiency of value chain relationships in the Indian steel industry using DEA

Authors: R. Mohammed Ilyas, Ravi Shankar, D.K. Banwet

Addresses: Department of Management Studies, Indian Institute of Technology, Delhi, Delhi, India; Strategic Planner, SABIC, P.O. Box 5101, Riyadh 11422, Saudi Arabia. ' Department of Management Studies, Indian Institute of Technology, Delhi, Delhi, India. ' Department of Management Studies, Indian Institute of Technology, Delhi, Delhi, India

Abstract: The mode of integration in the value chain has multifarious impacts on the business organisation that lead to a sustainable competitive advantage. Past studies have demonstrated that the integration of members of the value chain results in an improvement in productivity and profitability of organisations. The mode of integration is operational in nature and results in differential performance. Corporations aim to achieve differential performance and competitive advantage, by adopting multiple modes of value chain integration. The mode of relationship between partners varies from a simple buyer-seller relationship to integrative cross-holding. Various studies in the past have focused on comparing the ICM ratios to evaluate relative efficiency. As the effect of value chain integration on the organisation is all-pervasive, it is reflected in profitability and productivity. Therefore, an integrated measure of relative efficiency can reflect the relative efficiency of different modes of value chain relationships. This research article is based on a case study of the relative efficiency of five large corporations which dominate the steel sector in India. The study is based on Data Envelopment Analysis (DEA).

Keywords: value chain management; VCM; data envelopment analysis; DEA; value chain integration; steel industry; India; partner relationships; relative efficiency.

DOI: 10.1504/IJVCM.2007.013303

International Journal of Value Chain Management, 2007 Vol.1 No.3, pp.239 - 265

Published online: 20 Apr 2007 *

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