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Enhancing standard performance practices with DEA

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  • Bougnol, M.-L.
  • Dulá, J.H.
  • Estellita Lins, M.P.
  • Moreira da Silva, A.C.

Abstract

Data envelopment analysis (DEA) can be interpreted as a natural generalization of elemental practices for efficiency and performance evaluation used in diverse areas, some of which have evolved independently of each other and of the traditional efficiency framework of Charnes et al. [Measuring the efficiency of decision making units. European Journal of Operational Research 1978;2(6):429-44]. The paper aims to show that some standard "real-world" procedures employed by practitioners in the fields of retailing, finance, and social science can be interpreted as unconscious applications of DEA, and that such analyses could be enhanced by the explicit use of DEA. A supplementary aim is to demonstrate that DEA can be derived from concrete examples and first principles. The choice of the examples covers the two typical returns to scale environments of constant returns to scale (CRS) and variable returns to scale (VRS). Motivating and deriving DEA as a generalization of established performance evaluation practices will help to explain and disseminate this methodology to practitioners and to those who find their methods familiar.

Suggested Citation

  • Bougnol, M.-L. & Dulá, J.H. & Estellita Lins, M.P. & Moreira da Silva, A.C., 2010. "Enhancing standard performance practices with DEA," Omega, Elsevier, vol. 38(1-2), pages 33-45, February.
    • Handle: RePEc:eee:jomega:v:38:y:2010:i:1-2:p:33-45
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    3. Stewart, Theodor J., 2010. "Goal directed benchmarking for organizational efficiency," Omega, Elsevier, vol. 38(6), pages 534-539, December.
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    8. Victoria Wojcik & Harald Dyckhoff & Marcel Clermont, 2019. "Is data envelopment analysis a suitable tool for performance measurement and benchmarking in non-production contexts?," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 559-595, December.
    9. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2013. "Using Data Envelopment Analysis (DEA) for monitoring efficiency-based performance of productivity-driven organizations: Design and implementation of a decision support system," Omega, Elsevier, vol. 41(1), pages 131-142.
    10. Mariano, Enzo Barberio & Sobreiro, Vinicius Amorim & Rebelatto, Daisy Aparecida do Nascimento, 2015. "Human development and data envelopment analysis: A structured literature review," Omega, Elsevier, vol. 54(C), pages 33-49.
    11. Maghyereh, Aktham I. & Awartani, Basel, 2012. "Financial integration of GCC banking markets: A non-parametric bootstrap DEA estimation approach," Research in International Business and Finance, Elsevier, vol. 26(2), pages 181-195.
    12. Chris Tofallis, 2013. "An automatic-democratic approach to weight setting for the new human development index," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1325-1345, October.
    13. Marcos Pereira Estellita Lins & Sergio Orlando Antoun Netto & Maria Stella Castro Lobo, 2019. "Multimethodology applied to the evaluation of Healthcare in Brazilian municipalities," Health Care Management Science, Springer, vol. 22(2), pages 197-214, June.
    14. Panagiotis Ravanos & Giannis Karagiannis, 2021. "A VEA Benefit-of-the-Doubt Model for the HDI," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 27-46, May.
    15. Enzo Barberio Mariano & Diogo Ferraz & Simone Cristina Oliveira Gobbo, 2021. "The Human Development Index with Multiple Data Envelopment Analysis Approaches: A Comparative Evaluation Using Social Network Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(2), pages 443-500, September.
    16. Morais, Paulo & Camanho, Ana S., 2011. "Evaluation of performance of European cities with the aim to promote quality of life improvements," Omega, Elsevier, vol. 39(4), pages 398-409, August.
    17. Ramanathan, Ramakrishnan & Ramanathan, Usha, 2010. "A qualitative perspective to deriving weights from pairwise comparison matrices," Omega, Elsevier, vol. 38(3-4), pages 228-232, June.
    18. Partovi, Fariborz Y., 2011. "Corporate philanthropic selection using data envelopment analysis," Omega, Elsevier, vol. 39(5), pages 522-527, October.
    19. Van Puyenbroeck, Tom & Rogge, Nicky, 2020. "Comparing regional human development using global frontier difference indices," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    20. Giménez, Víctor & Ayvar-Campos, Francisco Javier & Navarro-Chávez, José César Lenin, 2017. "Efficiency in the generation of social welfare in Mexico: A proposal in the presence of bad outputs," Omega, Elsevier, vol. 69(C), pages 43-52.
    21. Woodside-Oriakhi, M. & Lucas, C. & Beasley, J.E., 2013. "Portfolio rebalancing with an investment horizon and transaction costs," Omega, Elsevier, vol. 41(2), pages 406-420.
    22. Necmi Avkiran & Alan McCrystal, 2014. "Intertemporal analysis of organizational productivity in residential aged care networks: scenario analyses for setting policy targets," Health Care Management Science, Springer, vol. 17(2), pages 113-125, June.

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