Multi-period two-stage DEA model: measuring performance of integrated production and service systems in Chinese cable TV industry

The performance of the provincial cable television (CATV) industry in China has become one of the main points of interest as competition in this market intensifies and policy making gradually moves from the central to the provincial level with the introduction of Internet Protocol Television (IPTV) and Over the Top (OTT). The CATV industry has two different vertically integrated activities: program production and service transmitting. In this paper, we develop a dynamic framework to describe an integrated system aiming to reflect the operation process of the CATV industry. Considering the service transmitting division further affects the program production division in the following period, this paper proposes a multi-period two-stage DEA model with feedback structures between service transmitting stage in the current period and program production stage in the next period to evaluate the relative performance. Detailed empirical results are presented from a panel data set of Chinese CATV industry from 2010 to 2019, covering two Five-Year Plans.