Efficiency Differences between Turkish and German Companies Operating in Germany

Considering efficiency as a key factor for competitive advantage in domestic and foreign markets, it is important to constitute the current efficiency of firms and to determine needed steps to take forward for enhancement. This study executes it for non-financial German and Turkish firms in Germany for 2007. 2007 was chosen as the year, which contains the most data and represents a normal period without any financial or economic crisis. Results of Data Envelopment Analysis infer that the efficiency ratios of Turkish enterprises in service sector calculated by constant returns to scale approach are lower than that of German enterprises but ratios calculated by variable return to scale approach catch those of German enterprises, suggesting that Turkish enterprises cannot benefit from economies of scale. On the other hand, Turkish enterprises have superior efficiency results over German enterprises in manufacturing sector