Simple additive weighting approach to score the state forest enterprises in Lithuania

Abstract

In the period of economic crisis (2008-2009) the intense discussion on the performance efficiency of state forestry has started in Lithuania. Different methods of efficiency ranking were applied but none of them proved itself to be totally acceptable one. The profound analysis of state forestry performance is on demand and the process of adaptation of modern-day conditions should be realized in state forestry throughout the future challenges. This paper addresses the Simple Additive Weighting (SAW) approach to score the state forest enterprises concerning performance evaluation. Two systems of indicators describing state forest enterprises (SFE) performance were applied in SAW evaluation. The first (detailed) system contained 34 indicators (SAW34) and the second one was based on 12 aggregated indicators (SAW12). In both the cases the selected indicators were defined as inputs (resources to be saved) and outputs (products and services to be maximized). Each of indicators has been given a weight. It was identified that the differences of SFE scores within SAW34 and SAW12 were impacted by the amount of indices and/or given weights. The multi regression analysis revealed that the most heavy impact on the performance of SFE in both SAW34 (non standardized regression coefficient (B) =0.69) and SAW12 (B=1.44) systems had the forest land area of SFE. Herewith, it was indicated that the performance analysis should be based on a system with a strictly limited amount of indicators. The higher scores in both evaluations got mostly the smaller SFE due to application of rational indicators (inputs and outputs per unit).