Arts and the Market
This longitudinal research examines US symphony orchestra sector organizations to determine individual efficiencies in allocating resources (donations, governmental/private funding, etc.) for desirable outputs (concerts, educational programs, community outreach). It provides researchers and managers with a tool for identifying, assessing and mitigating organizational inefficiencies.
This study assesses relative efficiencies in performing arts organizations using Data Envelopment Analysis (DEA), a widely-used nonparametric data-intensive benchmarking technique that determines an optimal “production frontier” of best-practice organizations among their peers and assesses their abilities to turn multivariate inputs into multivariate desired outputs.
This analysis highlights efficiency differences in a wide range of orchestras in converting available resources into performance-related outputs. It provides individual arts organizations with useful results for developing practical benchmarks to achieve organizational efficiency improvement. Research limitations/implications: This study provides constructive benchmarking guidance for improving efficiencies of relatively-inefficient organizations. Future analysis can expand the scope to utilize a two-stage DEA model to provide more specific guidance to arts organizations. Practical implications: This pragmatic analysis enables arts/culture institutions to assess their organizational efficiencies and identify opportunities to optimize resources in producing social outputs for their target markets. Social implications: Efficiency improvements enable performing arts organizations to provide additional artistic/social services, with fewer resources, to larger audiences.
This research demonstrates the abilities of DEA analysis to assess both a sector and its individual organizations to determine efficiencies, identify sources of inefficiencies and assess longitudinal efficiency trends.
© 2022 Theresa A. Kirchner, Linda L. Golden and Patrick L. Brockett.
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Original Publication Citation
Kirchner, T. A., Golden, L. L., & Brockett, P. L. (2022). Improving arts management/marketing efficiency: Optimizing utilization of scarce resources to produce artistic outputs. Arts and the Market, 12(3), 181-196. https://doi.org/10.1108/AAM-07-2021-0029
Kirchner, Theresa A.; Golden, Linda L.; and Brockett, Patrick L., "Improving Arts Management/Marketing Efficiency: Optimizing Utilization of Scarce Resources to Produce Artistic Outputs" (2022). Marketing Faculty Publications. 24.