Use of Malmquist Index in Evaluating Financial Performance of Companies in Cluster of Czech Furniture Manufacturers

This contribution deals with the influence of membership of a business entity in a cluster organization (CO) on its financial performance. The aim is to verify the hypothesis that the membership in a CO is connected with increasing financial performance of its members in time. In the research sample are included 17 members of the Cluster of Czech Furniture Manufacturers. The data are collected for years 2012-2017. For the assessment of financial performance, the DEA method is applied with two inputs and one output. For inputs were chosen the number of employees and the long-term capital, the economic value added was used as the output. For each company from the sample and periods, the Malmquist index values were calculated. With help of the Malmquist index it was possible to quantify the total factor productivity change and to decompose it to technological change and technical efficiency change. The development of the indicators was monitored in time. In conclusion, the results of the research are discussed. The research has shown an improvement in financial performance of companies in the Cluster of Czech Furniture Manufacturers.