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Data Envelopment Methodology of Performance Evaluation

In: Performance Evaluation

Author

Listed:
  • Harald Dyckhoff

    (RWTH Aachen University)

  • Rainer Souren

    (Ilmenau University of Technology)

Abstract

Chapter 1 has explained why the measurement of effectiveness and efficiency constitutes the core of performance evaluation. While traditional methods of cost/benefit-analysis and management accounting usually measure the performance of activities in monetary terms, data envelopment analysis (DEA) is an important methodology of performance evaluation for activities which are characterised by non-financial data. Chapter 3 uses results of Chapter 2 regarding multi-criteria production theory (MCPT) for linear value functions in order to form a firm foundation of DEA by generalising its common methodology. This generalisation strictly distinguishes between inputs and outputs as basic technological entities on the one hand, respectively costs and benefits as preferentially determined (in general non-financial) performance attributes on the other hand. At first, the relations between DEA and MCPT are explained as well as the question is critically discussed what kind of data may be enveloped by a linear or convex hull. The next three sections analyse the properties of well-known radial and additive DEA models and their systematic generalisations with respect to linear value functions of increasing complexity.

Suggested Citation

  • Harald Dyckhoff & Rainer Souren, 2020. "Data Envelopment Methodology of Performance Evaluation," SpringerBriefs in Business, in: Performance Evaluation, chapter 0, pages 47-82, Springer.
    • Handle: RePEc:spr:spbrcp:978-3-030-38732-7_3
    DOI: 10.1007/978-3-030-38732-7_3
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