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Measuring Scale Efficiency in Data Envelopment Analysis Considering Environmental Influences

Advances in Business and Management Forecasting

ISBN: 978-1-78441-209-8

ISSN: 1477-4070

Publication date: 12 November 2014

Abstract

This chapter proposes a new technique based on the data envelopment analysis (DEA) method to evaluate the scale efficiency with considering the environmental influences. Using this method, we can get the pure scale efficiency which has eliminated the environmental factors and random errors that might influence the production process. Our approach extends the three-stage-DEA model by Fried, Lovell, Schmidt, and Yaisawarng (2002) to the five-stage DEA model. Afterward, in order to measure the scale efficiency of the China’s universities more accurately, this chapter gives an empirical study on the scale efficiency of the top universities in China by applying the five-stage DEA model. The results show that the efficiency levels of many universities are indeed affected by external environmental variables and random factors. According to the levels of pure technical efficiency and scale efficiency, we divide China’s universities into four types, and we also propose some suggestions for the inefficient universities to improve their scale efficiency.

Keywords

Acknowledgements

Acknowledgments

The authors would like to thank National Natural Science Foundation of China (Grant nos. 71271195, 71322101, and 71110107024) and USTC Fund for Innovation Teams (WK2040160008) for their financial support.

Citation

Yang, F., Li, K. and Huang, Z. (2014), "Measuring Scale Efficiency in Data Envelopment Analysis Considering Environmental Influences", Advances in Business and Management Forecasting (Advances in Business and Management Forecasting, Vol. 10), Emerald Group Publishing Limited, Bingley, pp. 89-109. https://doi.org/10.1108/S1477-407020140000010017

Publisher

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Emerald Group Publishing Limited

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