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The aim of this study was to evaluate technical efficiency, pure technical efficiency and scale efficiency of freight forwarders for the period covering 2012-2014 by integrating Network Data Envelopment Analysis (Network DEA) and Balanced Scorecard (BSC). In this study, twenty-three (23) domestic and foreign freight forwarders in Korea were selected as a representative sample based on their detailed performance indicators which were available from the BSC perspective. The results of Network DEA under the assumption of constant returns to scale showed that affiliated freight forwarders of large conglomerates had the highest efficiency, followed by freight forwarders and third party logistics companies, and foreign freight forwarders. In the analysis of pure technical efficiency and scale efficiency using the Network DEA under the assumption of variable returns to scale, affiliated freight forwarders of large conglomerates had the highest pure technical efficiency, followed by freight forwarders and third party logistics companies, and foreign freight forwarders. Affiliated freight forwarders of large conglomerates had the highest scale efficiency. On the basis of efficiency ranking of freight forwarders, we discussed some policy suggestions on improving the efficiency of domestic freight forwarders in Korea.
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