Cognitive strategic groups and long-run efficiency evaluation : the case of Spanish savings banks

In the framework of Cognitive Approach, this paper proposes a new method to identify strategic groups (SG) using Data Envelopment Analysis (DEA) methods. Two assumptions are maintained in the SG literature: first, firms grouped together value inputs and outputs similarly, and, second, some degree of stability in those valuations should be identified. Virtual weights obtained from DEA are extremely useful in the valuation of the strategic variables, but a problem emerges when longitudinal analysis is performed. This problem is addressed by defining a long run DEA evaluation. SGs are determined by means of Cluster Analysis, using virtual outputs and virtual inputs as variables and Spanish savings banks as observations. The traditional method of determining SGs by clustering on the original variables is also applied and the results are compared. It is shown that the long run DEA weights approach has advantages over the traditional methodology

Cognitive strategic groups and long-run efficiency evaluation : the case of Spanish savings banks

In the framework of Cognitive Approach, this paper proposes a new method to identify strategic groups (SG) using Data Envelopment Analysis (DEA) methods. Two assumptions are maintained in the SG literature: first, firms grouped together value inputs and outputs similarly, and, second, some degree of stability in those valuations should be identified. Virtual weights obtained from DEA are extremely useful in the valuation of the strategic variables, but a problem emerges when longitudinal analysis is performed. This problem is addressed by defining a long run DEA evaluation. SGs are determined by means of Cluster Analysis, using virtual outputs and virtual inputs as variables and Spanish savings banks as observations. The traditional method of determining SGs by clustering on the original variables is also applied and the results are compared. It is shown that the long run DEA weights approach has advantages over the traditional methodology.

Heterogeneity and Evolutionary Change - Empirical Conception, Findings and Unresolved Issues

In this position paper we deal with the conception of heterogeneity as both the force and the result of evolutionary change. We ask, how this heterogeneity can be measured empirically and how we can get a measure which allows to get a broad comparable empirical account especially on several levels of aggregation. Based on this discussion we suggest that for several questions the measures of total factor productivity (TFP) and local changes of TFP seem to be acceptable candidates for measuring heterogeneity and its dynamics. Examples out of a number of empirical investigations applying this measures show how interesting empirical facts about evolutionary change on several levels of aggregation can be detected. The paper concludes by raising a number of unresolved issues mainly related to the question about the relationship between evolutionary dynamics on several levels of aggregation.

Housing Ranking: a model of equilibrium between buyers and sellers expectations

The equilibrium set of housing units (alternatives) can be characterized from the standpoint of both the demander and the supplier. The current work describes an application of the multicriteria single price model to the ranking of alternatives. By a generalization of the single price model and from both viewpoints an efficiency index can be calculated. We demonstrate how, in equilibrium, the two viewpoints result inevitably in inverse orders of ranking. The model is illustrated by a sample of housing units in the city of Valencia, Spain.

On The Applicability of Data Envelopment Analysis for Multiple Attriliute Decision Making in the Context of Information Systems Appraisals

This article elaborates on the applicability of basic and extended data envelopment analysis (DEA) models for various information system (IS) decision use-cases including illustrative examples from an enterprise resource planning (ERP) software investment appraisal. The usage of data envelopment analysis models and their extensions for IS decisions remains limited. This omission seems critical in particular for two reasons. First, organizational studies have shown that in practice business management fails to appreciate the portfolio of investment appraisal techniques available. Second, DEA based methodologies, especially new extensions, promise valuable insights to support the complex IS decision problem. The results indicate DEA applicability in a number of use-cases, e.g. for structural analysis of system alternatives or validation of ranking outcomes

Health care performance management : insights from applications of data envelopment analysis

The comprehensive measurement of efficiency and performance in the Health Service in the UK has become one of the most important managerial developments of recent years. The reasons for this development were examined, particularly in relation to the difficulties involved with performance assessment in such a context. The most widely utilised techniques were evaluated from the perspective of the Health Care Manager and a number of serious limitations were identified. In response to these limitations, the technique of Data Envelopment Analysis was evaluated as an alternative. It has been proposed as an appropriate and useful tool for the assessment of efficiency, although the literature on DEA showed limited practical application to public sector services in the UK. The many facets of the technique were investigated and literature on its application to hospital data was reviewed. A two-stage application procedure for the DEA technique was developed in response to this evaluation, to be used in the measurement hospital efficiency. The procedure was based on a deep theoretical understanding of the DEA methodology. The most important elements of the process were related to selection of the initial sample, the identification of the variables to be included in the DEA model and the definition of the weight restrictions to be incorporated. Input from Health Care Managers was used to guide the application and data from a sample of acute hospitals in Scotland was utilised in the analysis. The application procedure showed how the practicalities of the DEA technique could be enhanced, in particular through the inclusion of weight restrictions. This led to the development of efficiency strategies for the inefficient hospitals, which could be related to the policy objectives or managerial structure of the hospitals in the sample. It was concluded that there were many potential benefits of the DEA approach to efficiency assessment and the two-stage application procedure defined here, which could be seen to fulfil many of the requirements of the Health Care Manager. It was determined that combining theoretical and practical issues can enhance the applicability of the DEA methodology

The equity theory: A quantitative perspective using data envelopment analysis

Equity theory (ET) is an organizational theory investigating how fairly people feel they have been treated. The literature on ET does not address two essential questions: what is the magnitude of the equity that one may perceive compared to other members in an organization?, and how much should be the resources (outcomes) of an underpaid member reduced (increased) to feel equal? The group members may respond to these questions emotionally, and their answers could be biased based on their personalities. This paper proposes a novel method using data envelopment analysis (DEA) to quantify the ET and answer these questions more logically. DEA is a mathematical model that is conceptually similar to ET. We will show how DEA can estimate the degree of equity perceived by members of a group with different personalities, including optimistic, pessimistic, benevolent, and entitled characters

Ecological Efficiency Based Ranking of Cities: A Combined DEA Cross-Efficiency and Shannon's Entropy Method

In this paper, a method is proposed to calculate a comprehensive index that calculates the ecological efficiency of a city by combining together the measurements provided by some Data Envelopment Analysis (DEA) cross-efficiency models using the Shannon's entropy index. The DEA models include non-discretionary uncontrollable inputs, desirable and undesirable outputs. The method is implemented to compute the ecological efficiency of a sample of 116 Italian provincial capital cities in 2011 as a case study. Results emerging from the case study show that the proposed index has a good discrimination power and performs better than the ranking provided by the Sole24Ore, which is generally used in Italy to conduct benchmarking studies. While the sustainability index proposed by the Sole24Ore utilizes a set of subjective weights to aggregate individual indicators, the adoption of the DEA based method limits the subjectivity to the selection of the models. The ecological efficiency measurements generated by the implementation of the method for the Italian cities indicate that they perform very differently, and generally largest cities in terms of population size achieve a higher efficiency score

Evaluation of performance of European cities with the aim of increasing quality of life

Tese de Doutoramento. Engenharia Industrial e Gestão. Faculdade de Engenharia. Universidade do Porto. 201