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Article
Publication date: 1 March 2008

Yaw M. Mensah, Kevin C. K. Lam and Robert H. Werner

We present, in this study, a method for comparing the relative effectiveness of different non-profit institutions with similar objectives. In addition, we show how this…

Abstract

We present, in this study, a method for comparing the relative effectiveness of different non-profit institutions with similar objectives. In addition, we show how this measure of relative effectiveness is related theoretically to their relative efficiency. Relative effectiveness is shown to be a product of the efficacy with which potentially utilizable resources can be converted into usable inputs, and the efficiency with which the inputs are converted to outputs or outcomes. Finally, drawing on developments in data envelopment analysis, we illustrate the new methodology using data from 109 institutions of higher education.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 20 no. 3
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 15 March 2022

Tasfiq E. Alam, Andrés D. González and Shivakumar Raman

The main objective of the paper is to develop an investment model using data envelopment analysis (DEA) that provides a decision-making framework to allocate resources…

Abstract

Purpose

The main objective of the paper is to develop an investment model using data envelopment analysis (DEA) that provides a decision-making framework to allocate resources efficiently, such that the relative efficiency is improved within an available investment budget.

Design/methodology/approach

Firstly, DEA models are used to evaluate the efficiency of the departments relative to their peers and providing benchmarks for the less efficient departments. Secondly, the inefficiencies in departments are identified. Finally, for the less efficient departments, a decision-support system is introduced for optimizing resource allocation to improve efficiency.

Findings

Five of the 18 academic departments were determined to be inefficient, and benchmark departments were found for those departments. The most prevalent causes for inefficiency were the number of undergraduate students per faculty and the number of graduate students. Results from the investment model for department 12 suggest increasing the number of faculty by 2 units and H-Index by 0.5 units, thereby, improving the relative efficiency of the department by 6.8% (88%–94%), using $290,000 out of $500,000 investment budget provided.

Originality/value

When an investment budget is available, no study has used DEA to develop a decision-support framework for resource allocation in academic departments to maximize relative efficiency.

Details

Journal of Applied Research in Higher Education, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-7003

Keywords

Article
Publication date: 3 June 2022

Hyoung Joo Lim and Dafydd Mali

Because no international accounting policy exists to mandate human capital (HC) information must be reported on financial reports, the association between workforce HC and…

Abstract

Purpose

Because no international accounting policy exists to mandate human capital (HC) information must be reported on financial reports, the association between workforce HC and firm performance/efficiency is not well-established. South Korea is a rare example with high HC reporting quality, as well as relatively high national productivity. On the other hand, in some developed countries (such as the UK), HC reporting quality and productivity is low. Moreover, there is an increasing propensity to offer employees non-standard contracts. Thus, because of a divergence in HC reporting quality internationally, the South Korean sample can provide valuable insights to countries with weak HC reporting quality about the association between contract quality and firm performance/efficiency.

Design/methodology/approach

Using a sample of Korean listed firms (2010–2015), pooled Ordinary Least Squares (OLS) regression analysis is conducted to show whether firms that offer employees higher levels of permanent, relative to temporary contacts, demonstrate higher firm performance/efficiency.

Findings

Firms that provide employees with increasing permanent (temporary) contracts experience higher (lower) performance/efficiency.

Research limitations/implications

This research is limited due to sample selection. However, the sample represents the population of all firms that report contract type information in South Korea, a market with highly robust HC information reporting.

Originality/value

Because of data unavailability, a positive association firm-level performance/efficiency and permanent employment can only be made in a handful of countries. The study has policy implications and extends the non-financial reporting literature by addressing HC reporting limitations that exist in the mainstream accounting framework. Based on relative operational efficiency/performance, the study offers practical insights to management about the importance of staff retainment. Moreover, the authors also offer an anthropocentric perspective by inferring how low HC reporting quality can have a negative impact on society in Industry 4.0.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 28 October 2014

Ankit Bansal, Rajesh Kr. Singh, Siddhant Issar and Jayson Varkey

In order to improve the supply chain performance, organizations need to improve the efficiency of vendors. Although many techniques are used for vendor efficiency

Abstract

Purpose

In order to improve the supply chain performance, organizations need to improve the efficiency of vendors. Although many techniques are used for vendor efficiency measurement, there is a lack of research about defining satisficing level to analyze improvement potential of vendors. The purpose of this paper is to incorporate satisficing level of some outputs to determine efficiency improvement potential of existing vendors.

Design/methodology/approach

Method used in this paper is an extension of Data Envelopment Analysis, which has been used frequently for efficiency measurement of Decision Making Units. This method is known as Efficiency Analysis Technique with Output Satisficing (EATWOS), which has been mainly used in the field of economics for efficiency measurement.

Findings

A case illustration of a National Capital Region of Delhi, India, based manufacturer and distributor of packaged drinking water is depicted to portray the practical application of EATWOS in vendor efficiency evaluation and their relative ranking. This method has helped in evaluating the improvement potential in performance of given vendors and helping in strategic decision making for the given organization

Research limitations/implications

In case of more variables, this method becomes more complex to get the solution. Second, sometimes difference in vendors ranking without and with satisficing concept is very less, as in this case. Therefore, recording and analysis of output data of vendors should be done very carefully.

Practical implications

Major implications of this study is that while selecting vendors, organizations should also try to understand improvement potential for given vendors by applying satisficing concept as given in this research. This approach helps in analyzing improvement potentials of suppliers.

Originality/value

This paper explores an innovative approach to rank vendors on basis of certain criteria after considering the satisficing concept and improvement potentials of vendors.

Details

Journal of Advances in Management Research, vol. 11 no. 3
Type: Research Article
ISSN: 0972-7981

Keywords

Book part
Publication date: 8 August 2022

Gao Niu, John Quinn and Alan Olinsky

In this chapter, we applied Data Envelopment Analysis (DEA) to a group of property and casualty insurance companies' data from 2018 to 2020. The calculated relative

Abstract

In this chapter, we applied Data Envelopment Analysis (DEA) to a group of property and casualty insurance companies' data from 2018 to 2020. The calculated relative efficiencies were compared with selected traditionally used financial measures. We conclude that DEA and its relative efficiency calculation provide a consistent measure with selected IRIS ratios. The result and method can be used for situations when multiple ratios and change-based financial metrics provide inconsistent conclusions.

Article
Publication date: 1 February 2004

M.K. HASSAN, A. AL‐SHARKAS and A. SAMAD

The paper investigates relative efficiency of the banking industry in Bahrain by employing a panel of 31 banks for the years 1998 and 2000. We employ non‐parametric (Data…

Abstract

The paper investigates relative efficiency of the banking industry in Bahrain by employing a panel of 31 banks for the years 1998 and 2000. We employ non‐parametric (Data Envelopment Analysis) to examine five efficiency measures, namely, cost, allocative, technical, pure technical and scale efficiency scores. We also investigate the conventional accounting measures of performance, and correlate them with five measures of efficiency to investigate whether higher accounting performance impact the bank cost efficiency. Our results show that, on the average, the banking industry in Bahrain is profitable with average ROE and ROA being 10.36% 1.622% in 1998 while 13.49% and 2.097% in 2000 respectively. The average allocative efficiency (inefficiency) is about 73% (37%), whereas the average technical efficiency (inefficiency) is about 56% (78%). This indicates that the dominant source of inefficiency in Bahrain banks is due to technical inefficiency rather than allocative inefficiency, which is mainly attributed to diseconomies in scale. Overall, average scale efficiency (inefficiency) is about 79% (26%), and average pure technical efficiency (inefficiency) is about 71% (41%), suggesting that the major source of the total technical inefficiency for Bahrain banks is pure technical inefficiency (input related) and not scale inefficiency (output related). The results also indicate that all banks have improved their efficiency levels and experienced some gains in productivity. Finally, regression analysis is used to investigate the determinants of the overall efficiency scores. We find that larger and profitable banks are more likely to operate at a higher level of efficiency. Also, another finding reveals that market power plays an important role in cost and technical efficiencies. Notably, banks with greater contribution from shareholders tend to be more technical efficient

Details

Studies in Economics and Finance, vol. 22 no. 2
Type: Research Article
ISSN: 1086-7376

Article
Publication date: 1 March 1985

John G. Wacker

on model is developed which recognises behavioural restrictions on the hased resource schedule, the model's characteristics being sufficiently it can be applied to both…

Abstract

on model is developed which recognises behavioural restrictions on the hased resource schedule, the model's characteristics being sufficiently it can be applied to both service and manufacturing organisations. lude better policy decisions for planning resources to achieve higher iency. The model illustrates the close tie between policy, behavioural ative efficiency, and detailed resource scheduling.

Details

International Journal of Operations & Production Management, vol. 5 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Book part
Publication date: 19 September 2014

Venkat Kuppuswamy, George Serafeim and Belén Villalonga

Using a large sample of diversified firms from 38 countries we investigate the influence of several national-level institutional factors or “institutional voids” on the…

Abstract

Using a large sample of diversified firms from 38 countries we investigate the influence of several national-level institutional factors or “institutional voids” on the value of corporate diversification. Specifically, we explore whether the presence of frictions in a country’s capital markets, labor markets, and product markets, affects the excess value of diversified firms. We find that the value of diversified firms relative to their single-segment peers is higher in countries with less-efficient capital and labor markets, but find no evidence that product market efficiency affects the relative value of diversification. These results provide support for the theory of internal capital markets that argues that internal capital allocation would be relatively more beneficial in the presence of frictions in the external capital markets. In addition, the results show that diversification can be beneficial in the presence of frictions in the labor market.

Book part
Publication date: 8 August 2022

Rashmi Malhotra, D. K. Malhotra and Shubha Bennur

Skincare, hair care, make-up, perfumes, toiletries and deodorants, and oral cosmetics are the main product categories of the cosmetic market. Since the early twentieth…

Abstract

Skincare, hair care, make-up, perfumes, toiletries and deodorants, and oral cosmetics are the main product categories of the cosmetic market. Since the early twentieth century, the production of cosmetics and beauty products has been controlled by a handful of multi-national corporations. COVID-19 impacted the cosmetics industry in several different and sometimes conflicting ways. This study benchmarks the performance of 20 largest cosmetics companies against their competition as well as against their previous years to analyze the impact of COVID-19. We find that only one company has consistently performed than its peers over the period of 2015–2020. We also find that average efficiency score of cosmetics companies declines in 2020 relative to 2019.

Details

Applications of Management Science
Type: Book
ISBN: 978-1-80071-552-3

Keywords

Book part
Publication date: 11 September 2020

Dariush Khezrimotlagh

In this chapter, the concepts of technical efficiency, efficiency, effectiveness, and productivity are illustrated. It is discussed that when firms are not homogeneous…

Abstract

In this chapter, the concepts of technical efficiency, efficiency, effectiveness, and productivity are illustrated. It is discussed that when firms are not homogeneous, the situation is the same as when each factor has a different unit of measurement from one firm to another, and therefore, no meaningful discrimination can be expressed, unless a set of known weights are introduced to standardize data. A linear programming data envelopment analysis model is used when a set of known weights are given to calculate the technical efficiency and efficiency of a set of homogeneous DMUs with multiple input factors and output factors. A numerical example is also provided.

Details

Applications of Management Science
Type: Book
ISBN: 978-1-83867-001-6

Keywords

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