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Efficiency measurements in multi‐activity data envelopment analysis with shared inputs

Author

Listed:
  • Po‐Chi Chen
  • Shih‐Hsun Hsu
  • Ching‐Cheng Chang
  • Ming‐Miin Yu

Abstract

Purpose - The paper aims to propose a modified multi‐activity data envelopment analysis (MDEA) to provide information on the efficiency performance of farmers' cooperatives with inputs shared among several closely‐related activities. Design/methodology/approach - The directional distance functions are used to construct a non‐radial measure of performance in which the optimal input/output adjustment and the optimal allocation of shared inputs is simultaneously taken into consideration. The model is applied to study the case of 201 farmers' cooperatives in Taiwan. Findings - The empirical results suggest that there exist significant discrepancy in terms of the performance among the four departments of the farmers' cooperatives. Furthermore, the wide discrepancy in the returns to scale warrant further deregulations by easing restrictions on their consolidation with other cooperatives to operate over broader geographical areas. Originality/value - An empirical study on Taiwan's farmers' cooperatives is used to demonstrate its applicability and how they can effectively allocate their fixed resources in a multi‐activity environment. Such a measure can be used for rewarding the individual groups of an organization based on their relative contributions to the overall performance.

Suggested Citation

  • Po‐Chi Chen & Shih‐Hsun Hsu & Ching‐Cheng Chang & Ming‐Miin Yu, 2013. "Efficiency measurements in multi‐activity data envelopment analysis with shared inputs," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 5(1), pages 24-42, January.
    • Handle: RePEc:eme:caerpp:v:5:y:2013:i:1:p:24-42
    DOI: 10.1108/17561371311294748
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    Citations

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    Cited by:

    1. Jaqueline Marcis & Sandro Cesar Bortoluzzi & Edson Pinheiro Lima & Sérgio Eduardo Gouvêa Costa, 2019. "Sustainability performance evaluation of agricultural cooperatives’ operations: a systemic review of the literature," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(3), pages 1111-1126, June.
    2. Chen, Chih Cheng, 2017. "Measuring departmental and overall regional performance: applying the multi-activity DEA model to Taiwan׳s cities/counties," Omega, Elsevier, vol. 67(C), pages 60-80.
    3. Mahinda Wijesiri & Almudena Martínez-Campillo & Peter Wanke, 2019. "Is there a trade-off between social and financial performance of public commercial banks in India? A multi-activity DEA model with shared inputs and undesirable outputs," Review of Managerial Science, Springer, vol. 13(2), pages 417-442, April.

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