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Modelling generalized firms’ restructuring using inverse DEA

Author

Listed:
  • Gholam R. Amin

    (University of New Brunswick at Saint John)

  • Ali Emrouznejad

    (Aston University)

  • Said Gattoufi

    (Université de Tunis)

Abstract

The key consideration for firms’ restructuring is improving their operational efficiencies. Market conditions often offer opportunities or generate threats that can be handled by restructuring scenarios through consolidation, to create synergy, or through split, to create reverse synergy. A generalized restructuring refers to a move in a business market where a homogeneous set of firms, a set of pre-restructuring decision making units (DMUs), proceed with a restructuring to produce a new set of post-restructuring entities in the same market to realize efficiency targets. This paper aims to develop a novel inverse Data Envelopment Analysis based methodology, called GInvDEA (Generalized Inverse DEA), for modeling the generalized restructuring. Moreover, the paper suggests a linear programming model that allows determining the lowest performance levels, measured by efficiency that can be achieved through a given generalized restructuring. An application in banking operations illustrates the theory developed in the paper.

Suggested Citation

  • Gholam R. Amin & Ali Emrouznejad & Said Gattoufi, 2017. "Modelling generalized firms’ restructuring using inverse DEA," Journal of Productivity Analysis, Springer, vol. 48(1), pages 51-61, August.
    • Handle: RePEc:kap:jproda:v:48:y:2017:i:1:d:10.1007_s11123-017-0501-y
    DOI: 10.1007/s11123-017-0501-y
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    3. Ghiyasi, Mojtaba & Soltanifar, Mehdi & Sharafi, Hamid, 2022. "A novel inverse DEA-R model with application in hospital efficiency," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    4. Contreras, I. & Lozano, S., 2022. "Size efficiency, splits and merger gains, and centralized resource reallocation of Spanish public universities," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).

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