Efficiency and Super‐Efficiency in the CRO Industry, 2012–2021: A Two‐Stage Exploration

ABSTRACT This paper explores the productivity of contract research organizations (CROs) by computing and exploring efficiency and super‐efficiency data envelopment analysis (SDEA) scores for a sample of companies over 2012–2021. Main findings suggest that CRO efficiency and super‐efficiency is high and has increased more than 25% over 2012–2021. The top positions in the rankings according to efficiency are not limited to a few companies; in contrast, many firms in the sample are able to reach a top position in at least one concept of efficiency, suggesting the high degree of rivalry and competition in this industry. A second‐stage preliminary analysis of variables associated with efficiency suggests that best performers implement a sound human capital policy, with controlled costs. Moreover, they also have a careful short‐term cash‐flow management, with brief collection periods. Big and small firms outperform the rest of the companies, suggesting the presence of increasing returns and niche advantages in some stages of the supply chain. Finally, results suggest that the COVID pandemic had an asymmetric impact on CROs, affecting positively only large CROs.