THE EFFECT OF MARKETING INVESTMENTS ON FINANCIAL PERFORMANCE AND EVALUATION OF THE EFFICIENCIES OF FIRMS INCLUDED IN BORSA ISTANBUL SME INDUSTRIAL INDEX

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This paper analyzes efficiencies of marketing investments of firms included in Borsa İstanbul SME Industrial Index. Based on 2012-2013 data, the relative efficiencies of SMEs, in terms of their marketing investments, are analyzed on the basis of three efficiency types. CCR, as well as BCC data envelopment models are used, where marketing intensity is the only input and pre-tax margin and market capitalization are the two outputs. SMEs are broken down into two groups with respect to their asset size, and whether or not their efficiency scores are different is investigated through parametric or non-parametric tests. The major finding of the paper is that in general SMEs have low efficiency scores and most of them operate at increasing returns to scale. SMEs that have higher asset size are found to have higher scale efficiency scores than SMEs that have lower asset size. SMEs may be expected to increase their operating efficiency (total technical efficiency) by appro-aching optimal scale size through increased level of marketing investments

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SMEs , Marketing Investments , Financial Performance , Asset Size , Data Enve , lopment Analysis , Efficiency.

Erciyes University Journal Of Economics an‎d Administrative Sciences

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Erciyes University Journal Of Economics an‎d Administrative Sciences