The Impact of Reforms, Strategies and Socio-Economic Factors on the Performance of Cultural Organizations: A Network DEA Approach

The paper investigates the influence of reforms, demographic and socio-economic factors, and firm strategies on the performance of cultural organizations. The research question is addressed by applying a basic Data Envelopment Analysis Slack-Based Model (DEA SBM) and network DEA SBM to the whole population of Italian opera-symphony foundations, observed from 2010 to 2016, a period centered around the 2013’s reform that conditioned the provision of public subsidies to opera houses to the attainment of cost-recovery and artistic quality goals. Results show that cultural organizations are more efficient at undertaking tasks related to organizing and creating cultural offer than at meeting market goal. In this last perspective, cultural organizations are less effective at increasing sales than they are at attracting audience. The provisions introduced by the 2013’s reform did not help opera houses to attain higher level of revenues generation, but they encouraged opera houses to improve their performance as regards output and audience attendance: this is consistent with the law’s purpose to increase the theatre production in quantity and quality. It follows that opera house Foundations must rely on their own resources, such as social media communication and outsourcing strategies, to increase revenue performance.