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1 – 10 of 509
Article
Publication date: 20 April 2020

Parisa Kamyab, Mohammad Reza Mozaffari, Javad Gerami and Peter F. Wankei

It is always of great importance for managers in organizations to evaluate their staff members and create incentive systems, using instruments such as Data Envelopment Analysis …

Abstract

Purpose

It is always of great importance for managers in organizations to evaluate their staff members and create incentive systems, using instruments such as Data Envelopment Analysis (DEA) and DEA-R (DEA models based on ratio analysis). The purpose of this paper is to propose a two-stage network incentives system for commercial banks.

Design/methodology/approach

Centralized Resource Allocation (CRA) models make it possible to project all decision-making units (DMUs) onto the efficient frontier by solving a single linear programming model. In this paper, we use our proposed DEA-R-based CRA models to evaluate commercial banks in a two-stage case when the only ratios available are the assets-to-costs and income-to-assets vectors.

Findings

Thirteen commercial banks modeled as two-stage networks were evaluated by the models proposed in two different cases of ratio data. Results suggest that the proposed methodology yields more accurate efficiency scores, thus allowing better discrimination among DMUs. Furthermore, evaluating the DMUs when they are structured as two-stage (or even three-stage) networks makes it possible to examine the incentives system in more detail. Therefore, the use of incentive systems by managers would allow a better focus on the priority activities of commercial banks and a faster movement toward the frontier of best practices.

Originality/value

The super-efficiency scores of a number of commercial banks are evaluated based on the CRA model, as a cornerstone criterion for the two-stage evaluation in DEA-R, thus allowing the rank of each commercial bank in terms of the incentives system rather on the performance of the productive process.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 5 May 2023

Muhamad Nafik Hadi Ryandono, Tika Widiastuti, Eko Fajar Cahyono, Dian Filianti, A. Syifaul Qulub and Muhammad Ubaidillah Al Mustofa

Zakat is an important Islamic economic instrument that plays significant role in Sustainable Development Goals. Accordingly, Zakat Institutions must manage zakat in a proper and…

Abstract

Purpose

Zakat is an important Islamic economic instrument that plays significant role in Sustainable Development Goals. Accordingly, Zakat Institutions must manage zakat in a proper and efficient manner. This study aims to examine the efficiency of Zakat Institutions based on their clusters which are government, business and social organizations.

Design/methodology/approach

This study uses three quantitative methods: data envelopment analysis (DEA), free disposal hull and super-efficiency DEA. The analytical method is based on production approach, variable return to scale assumption and output orientation. The sample consists of 14 Zakat Institutions from three clusters: Zakat Institutions managed by government, Zakat Institutions managed by corporation and Zakat Institution managed by social organizations.

Findings

The results revealed that all of three techniques culminate the same ranking order of efficiency. Zakat Institution managed by the government is the most efficient Zakat Institution, with the average value of 0.87 by using three approaches combined. Meanwhile, Zakat Institutions owned by company and social institutions cluster are in second and third position, with the average value of 0.65 and 0.4, respectively, based on the results of the three approaches. This study contends that the level of efficiency of Zakat Institutions may be supported by clusters (affiliations) in their management.

Research limitations/implications

This study’s limitation is the inadequacy of the required data. Nonetheless, this study provides insights to improve the efficiency of Zakat Institutions based on their clusters. Zakat Institutions in each cluster can improve their efficiency by optimizing inputs to produce multiple outputs.

Originality/value

This study enhances research on the efficiency of Zakat Institutions using three methods to assess the consistency and strength of Zakat Institutions’ efficiency values. In addition, this study examines the efficiency level of Zakat Institutions based on their clusters.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 8
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 February 2016

Asmita Chitnis and Omkarprasad S Vaidya

The purpose of this paper is to present a tie-breaking procedure for computing performance efficiencies to improve benchmarking and performance evaluation process in a business…

Abstract

Purpose

The purpose of this paper is to present a tie-breaking procedure for computing performance efficiencies to improve benchmarking and performance evaluation process in a business situation.

Design/methodology/approach

The authors propose a unified approach based on data envelopment analysis (DEA) and technique for order of preference by similarity to ideal solution (TOPSIS), to overcome the difficulty of unique ranking in the prevalent benchmarking and performance evaluation processes such as DEA, Super efficiency DEA model, etc., under constant return to scale (CRS) assumption. This model is called as efficiency ranking method using DEA and TOPSIS (ERM-DT). In order to check the consistency of the approach, various input-output combinations (to calculate the efficiencies) have been illustrated. Further, the authors present a case of an Indian Bank to illustrate an application of the proposed approach.

Findings

The proposed approach, ERM-DT enables assign a unique rank to decision making units and provides a tie breaking procedure. Results obtained using the proposed approach are statistically compared with those obtained from the CRS DEA approach and super efficiency DEA approach using Friedman’s test.

Practical implications

The proposed model provides an efficiency ranking method based on a score obtained by considering the minimum distance from the best value and maximum distance from the worst value. The proposed methodology is capable of handling negative data and undesirable output variables. This approach is unit invariant and makes the calculations simple. The authors present an application to compute the efficiency of various branches of an Indian bank. The authors hope the proposed method can enhance the decision-making ability of the management in complex situations.

Originality/value

The authors propose an integrated DEA and TOPSIS framework for better benchmarking and performance evaluation. This approach provides a tie-breaking procedure for the efficiencies computed using CRS DEA approach. Ranks are assigned based on score obtained by considering the distance from the worst and the best solution. The proposed approach can be used with non-positive data points and undesirable output variables.

Details

Benchmarking: An International Journal, vol. 23 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 6 August 2020

Mohammad Tavassoli, Amirali Fathi and Reza Farzipoor Saen

The purpose of this study is to propose a novel super-efficiency DEA model to appraise the relative efficiency of DMUs with zero data and stochastic data. Our model can work with…

Abstract

Purpose

The purpose of this study is to propose a novel super-efficiency DEA model to appraise the relative efficiency of DMUs with zero data and stochastic data. Our model can work with both variable returns to scale (VRS) and constant returns to scale (CRS).

Design/methodology/approach

This study proposes a new stochastic super-efficiency DEA (SSDEA) model to assess the performance of airlines with stochastic and zero inputs and outputs.

Findings

This paper proposes a new analysis and contribution to the knowledge of efficiency assessment with stochastic super-efficiency DEA model by (1) using input saving and output surplus index for efficient DMUs to get the optimal solution; (2) obtaining efficiency scores from the proposed model that are equivalent to original stochastic super-efficiency model when feasible solutions exist. A case study is given to illustrate the applicability of our proposed model. Also, poor performance reasons are identified to improve the performance of inefficient airlines.

Originality/value

For the first time, a new SSDEA model for ranking DMUs is proposed. The introduced model produces a feasible solution when dealing with zero input or output. This paper applies the input saving and output surplus concept to rectify the infeasibility problem in the stochastic DEA model.

Details

Benchmarking: An International Journal, vol. 28 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 4 April 2016

Qian Yu and Fujun Hou

The traditional data envelopment analysis (DEA) model as a non-parametric technique can measure the relative efficiencies of a decision-making units (DMUs) set with exact values…

Abstract

Purpose

The traditional data envelopment analysis (DEA) model as a non-parametric technique can measure the relative efficiencies of a decision-making units (DMUs) set with exact values of inputs and outputs, but it cannot handle the imprecise data. The purpose of this paper is to establish a super efficiency interval data envelopment analysis (IDEA) model, an IDEA model based on cross-evaluation and a cross evaluation-based measure of super efficiency IDEA model. And the authors apply the proposed approach to data on the 29 public secondary schools in Greece, and further demonstrate the feasibility of the proposed approach.

Design/methodology/approach

In this paper, based on the IDEA model, the authors propose an improved version of establishing a super efficiency IDEA model, an IDEA model based on cross-evaluation, and then present a cross evaluation-based measure of super efficiency IDEA model by combining the super efficiency method with cross-evaluation. The proposed model cannot only discriminate the performance of efficient DMUs from inefficient ones, but also can distinguish between the efficient DMUs. By using the proposed approach, the overall performance of all DMUs with interval data can be fully ranked.

Findings

A numerical example is presented to illustrate the application of the proposed methodology. The result shows that the proposed approach is an effective and practical method to measure the efficiency of the DMUs with imprecise data.

Practical implications

The proposed model can avoid the fact that the original DEA model can only distinguish the performance of efficient DMUs from inefficient ones, but cannot discriminate between the efficient DMUs.

Originality/value

This paper introduces the effective method to obtain the complete rank of all DMUs with interval data.

Details

Kybernetes, vol. 45 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 8 April 2022

Peng Yu, Bok Young Yoo and Jang Hee Lee

The purpose of this study is to propose a comprehensive benchmarking approach to help subsidiaries of a company to implement continuous improvement (CI).

Abstract

Purpose

The purpose of this study is to propose a comprehensive benchmarking approach to help subsidiaries of a company to implement continuous improvement (CI).

Design/methodology/approach

The proposed approach classifies subsidiaries of a company into the three stages of CI. After that, the proposed approach employs data envelopment analysis (DEA)-super slacks-based measure (SBM) model and Malmquist Productivity Index (MPI) to evaluate the operational efficiency of the subsidiaries and selects benchmarking targets and sets benchmarking goals based on the operational efficiency for benchmarking of input and output criteria. Then, the proposed approach suggests a four-step benchmarking process for benchmarking of detailed efficiency. Finally, the proposed approach makes the subsidiaries achieve CI by implementing the input and output benchmarking and the efficiency benchmarking.

Findings

The results show that the proposed approach can help subsidiaries of a company to implement a staged benchmarking which considers input and output criteria and Malmquist productivity and efficiency comprehensively.

Originality/value

Generally, benchmarking is implemented in many aspects. However, due to the restriction of a company’s resource level, a practical and staged benchmarking is preferred. This study proposes a comprehensive approach to benchmark systematically and gradually, and provides a more reasonable benchmarking process for implementing CI.

Details

Business Process Management Journal, vol. 28 no. 3
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 18 May 2010

Ahmed Salem Al‐Eraqi, Adli Mustafa and Ahamad Tajudin Khader

The aim of this paper is to evaluate the efficiency of 22 cargo seaports situated in the regions of East Africa and Middle East.

1379

Abstract

Purpose

The aim of this paper is to evaluate the efficiency of 22 cargo seaports situated in the regions of East Africa and Middle East.

Design/methodology/approach

The data envelopment analysis (DEA) with window analysis model evaluates the efficiency score in terms of normal efficiency and super efficiency. The analysis is based on the panel data for the period of 2000‐2005.

Findings

The number of efficient decision making units (DMUs) under super efficiency is more than the number under normal efficiency.

Originality/value

Using panel data, this paper is the first study to use super efficiency with window analysis that compares the efficiency estimated with the normal efficiency and with super efficiency.

Details

Journal of Economic Studies, vol. 37 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 6 August 2019

Roopteja Tamatam, Pankaj Dutta, Goutam Dutta and Stefan Lessmann

The purpose of this paper is to estimate the relative efficiencies of banks of the Indian domestic banking sector by employing various models of data envelopment analysis (DEA

1093

Abstract

Purpose

The purpose of this paper is to estimate the relative efficiencies of banks of the Indian domestic banking sector by employing various models of data envelopment analysis (DEA) using the panel data of the recent decade (2008–2017). The paper provides a comparative analysis of these models based on the efficiency outputs. It compares the performance of banks based on their ownership and sizes and studies the decade-long trend of productivity using Malmquist indices.

Design/methodology/approach

This paper estimates overall technical, pure technical and scale efficiencies of 21 public sector banks and 17 private banks. It compares the descriptive statistics of efficiency estimates found out through 18 different DEA models and compares them using two non-parametric statistical tests. It studies the difference in efficiencies based on ownership and size by applying the same statistical tests. It employs the Malmquist index method to study the technological and technical progress in the banks’ productivity over the decade of FY 2008–FY 2017.

Findings

During FY 2016–2017, only 9 out of 38 banks were overall technically efficient with the whole sample having a mean overall technical inefficiency of 5 percent with scale inefficiency contributing more than pure technical inefficiency. The comparative study ascertains that private sector and public sector banks (PSBs) possess efficiencies that are similar based on super-efficiency slack-based model – variable returns to scale and non-oriented, a model that the authors argue to be the most suitable for the real-life business banking scenarios whereas the private sector banks possess better efficiency than the PSBs. The Malmquist indices prove that private sector banks have a higher increase in productivity based on both technological progress and efficiency improvements whereas PSBs had a loss of efficiency and comparatively less improvement in technology.

Research limitations/implications

This study has a limitation of choosing a single model of inputs and outputs. Improved insights can be drawn by employing more models based on different inputs and outputs. Further, relevance of each input and output can be examined using a regression-based feedback mechanism (Ouenniche and Carrales, 2018). The influence of environmental factors on the efficiencies can be studied using second-stage regression models and the relationship between efficiency scores and financial ratios can be examined.

Originality/value

This study is based on the panel data of the recent decade (2008–2017) and provides insights into the efficiency scenario of the Indian banking industry and how it changed over the past decade, to the leadership of banks, the banking regulators and the policy makers. The comparative analysis of DEA models based on a sample of Indian banks is first of its kind in the Indian context and helps the researchers to select an appropriate model and delve into further research on the same.

Details

Benchmarking: An International Journal, vol. 26 no. 8
Type: Research Article
ISSN: 1463-5771

Keywords

Content available
Article
Publication date: 11 January 2021

Liu-Liu Li, Young-Joon Seo and Min-Ho Ha

Seaports are a signifier for the world economy and international trade. Notwithstanding the considerable role of Chinese ports in global trade, only few studies have explored the…

2217

Abstract

Purpose

Seaports are a signifier for the world economy and international trade. Notwithstanding the considerable role of Chinese ports in global trade, only few studies have explored the efficiency of Chinese container terminals. Furthermore, studies on Chinese port efficiency has typically centered on port-level analysis, not terminal level. Therefore, this study aims to examine the operation efficiency of Chinese container terminals.

Design/methodology/approach

This study uses super-efficiency data envelopment analysis (SE-DEA) approach. SE-DEA is superior than basic DEA model because it is feasible for categorizing and ranking the efficiency of container terminals more accurately and comprehensively. In the basic model, if the several decision-making units (DMUs) are efficient, the efficiency value of them is “1.” However, in the SE-DEA model, the most efficient DMU is over “1.” Based on the level of container throughput in 2018, the top 20 Chinese container terminal companies were selected. Various production quotas were selected as inputs, while the container throughput was considered output.

Findings

The findings show that Terminal Shanghai Mingdong Container Terminal Co., Ltd. was ranked 1, followed by Shanghai Shengdong International Container Terminal Co., Ltd., Shanghai International Port (Group) Co., Ltd. and Yidong Container Terminal Branch.

Originality/value

This study contributes to providing some insights into Chinese container terminal industry to augment the efficiency. This study also provides practical and policy implications (e.g. better terminal operations) for container terminals.

Details

Maritime Business Review, vol. 6 no. 2
Type: Research Article
ISSN: 2397-3757

Keywords

Article
Publication date: 30 August 2011

Sunil Kumar

The purpose of this paper is not only to gauge the extent of technical efficiency in 31 state road transport undertakings (SRTUs) operating in India but also to explore the most…

1551

Abstract

Purpose

The purpose of this paper is not only to gauge the extent of technical efficiency in 31 state road transport undertakings (SRTUs) operating in India but also to explore the most influential factors explaining its variations across SRTUs.

Design/methodology/approach

Three popular data envelopment analysis (DEA) models, namely CCR, BCC and Andersen and Petersen's superefficiency models, have been utilized to compute various efficiency scores for individual SRTUs. A censored Tobit analysis is conducted to see which factors significantly explain the inter‐SRTU variations in efficiency.

Findings

The key findings of the DEA analysis are only five SRTUs define the efficient frontier, and the remaining 26 inefficient undertakings have a scope of inputs reduction, albeit by the different magnitude; the extent of average overall technical inefficiency (OTIE) in these SRTUs is to the tune of 22.8 percent, indicating that the sample SRTUs are wasting about one‐fourth of their resources in the production operations; managerial inefficiency (as captured by the pure technical inefficiency) is a relatively more dominant source of OTIE; and operation in the zone of increasing returns‐to‐scale is a common feature for most of the undertakings. The multivariate regression analysis using Tobit analysis highlights that the occupancy ratio is the most significant determinant for all the efficiency measures, and bears a positive relationship with overall technical, pure technical and scale efficiencies. Further, scale efficiency is also impacted positively by the staff productivity.

Practical implications

The results of this paper can be applied from management's perspective. The managers can assess the relative efficiency of their SRTUs in the industry and take corrective measures to improve efficiency by altering input‐output mix.

Originality/value

This paper provides more robust estimates of relative efficiency of the SRTUs and highlights the key determinants of overall technical efficiency.

Details

Benchmarking: An International Journal, vol. 18 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

1 – 10 of 509