Management Theory and Studies for Rural Business and Infrastructure Development, Volume 25

Strategic management of sustainable rural Development: mcdm methods and integrated assessment of Lithuanian family farm efficieny

Alvydas Baležentis, Tomas Baležentis

Abstract

A proper application of decision aiding methods is essential when making strategic man-agement decisions as well as evaluating processes of sustainable development. This study is fo-cused on complex benchmarking and comparison of family farm efficiency identified by indica-tors measured in different dimensions. The aim of the research was to offer a novel procedure for multi–criteria evaluation of family farm economic efficiency based on application of multi–criteria decision making methods. Hence, in order to perform a complex evaluation of family farm efficiency, appropriate indicators identifying inputs, outputs, and financial situation were aggregated. More specifically, the VIKOR method was applied for analysis. The results of anal-ysis proved the existing phenomenon of diminishing marginal efficiency, i. e. the smallest as well as the largest farms were those operating most effectively. Moreover, it was suggested that family farms oriented towards field crops and granivores, mixed cropping, and horticulture and permanent crops were the most efficient. Finally, during the investigated period the best situation was observed in family farms located in counties of Marijampolė and Šiauliai.

JEL classification: C44, Q10, Q12, Q13, M21.

Keyword(s): MCDM, VIKOR, family farms, Lithuania, sustainable rural development, operation efficiency, strategic management.


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.