The measurement of revenue inefficiency over time: An additive perspective

In this paper, we measure and decompose revenue inefficiency over time while accounting for all sources of technical inefficiencies. Our proposed decomposition exploits the dual relationship between the weighted additive distance function and revenue inefficiency in Aparicio et al. [1]. With the aid of the Luenberger indicator, we decompose this indicator into productivity change, and overall allocative change components. The importance of such decomposition is that it provides a complete picture of the sources of productivity change, thus obtaining a slack free allocative component. Finally, the model is ap- plied to the French wine sector to illustrate its practicality: we track how revenue inefficiency evolves in French wine regions over the 2004–2013 period, before and after the implementation of Common Market Organization policies in Europe in 200

On single-stage DEA models with weight restrictions

The literature on data envelopment analysis (DEA) often employs multiplier models that incorporate very small (theoretically infinitesimal) lower bounds on the input and output weights. Computational problems arising from the solution of such programs are well known. In this paper we identify an additional theoretical problem that may arise if such bounds are used in a multiplier model with weight restrictions. Namely, we show that the use of small lower bounds may lead to the identification of an efficient target with negative inputs. We suggest a corrected model that overcomes this problem

Solving DEA models in a single optimization stage: Can the non-Archimedean infinitesimal be replaced by a small finite epsilon?

Single-stage DEA models aim to assess the input or output radial efficiency of a decision making unit and potential mix inefficiency in a single optimization stage. This is achieved by incorporating the sum of input and output slacks, multiplied by a small (theoretically non-Archimedean infinitesimal) value epsilon in the envelopment model or, equivalently, by using this value as the lower bound on the input and output weights in the dual multiplier model. When this approach is used, it is common practice to select a very small value for epsilon. This is based on the expectation that, for a sufficiently small epsilon, the radial efficiency and optimal slacks obtained by solving the single-stage model should be approximately equal to their true values obtained by the two separate optimization stages. However, as well-known, selecting a small epsilon may lead to significant computational inaccuracies. In this paper we prove that there exists a threshold value, referred to as the effective bound, such that, if epsilon is smaller than this bound, the solution to the single-stage program is not approximate but precise (exactly the same as in the two-stage approach), provided there are no computational errors

Consistent weight restrictions in data envelopment analysis

It has recently been shown that the incorporation of weight restrictions in models of data envelopment analysis (DEA) may induce free or unlimited production of output vectors in the underlying production technology, which is expressly disallowed by standard production assumptions. This effect may either result in an infeasible multiplier model with weight restrictions or remain undetected by normal efficiency computations. The latter is potentially troubling because even if the efficiency scores appear unproblematic, they may still be assessed in an erroneous model of production technology. Two approaches to testing the existence of free and unlimited production have recently been developed: computational and analytical. While the latter is more straightforward than the former, its application is limited only to unlinked weight restrictions. In this paper we develop several new analytical conditions for a larger class of unlinked and linked weight restrictions

The role of the hub-firm in developing innovation capabilities:considering the French wine industry cluster from a resource orchestration lens

Abstract Purpose This paper explores how hub-firms in a regional industrial cluster orchestrate resources to enhance the innovation capabilities of member firms and how this role changes as innovation projects develop. The work advances our understanding of how innovation-oriented clusters can drive the collaboration process, support the development of member capabilities and achieve desired outcomes. Design/methodology/approach The research utilises exploratory case studies within an innovation cluster, where a hub-firm brings together different players for specific innovation projects. Using resource orchestration theory, the paper analyses six project cases to reveal the shifting roles and activities related to structuring, bundling and leveraging different resources for innovation capabilities particularly associated with improved quality and reputation for the firms and region. Findings The study reveals the important role played by the cluster hub-firm in structuring, bundling and leveraging resources to create and fund project teams. After project formation, a team member takes the role of an orchestrator to bundle further and then leverage the resources to achieve desired outcomes for the team and the region. Research limitations/implications This work focuses on a wine industry but has implications for the success orchestration of other regional industrial clusters. Also, the lack of hub-firm interaction during the project process provides an opportunity to consider mechanisms for better guidance of the project team. Practical implications There are implications for practitioners for participating in and further improving the collaborative innovative process. Social implications Policymakers can benefit from the study as the required practices for stimulating innovation capabilities and economic development in a region are discussed. Originality/value This research enhances understanding of the hub-firm's role in a regional cluster not only in orchestrating resources to create collaborative innovation projects but how the role shifts over time

Understanding Relationship Value Applying a Cognitive Mapping Approach: A Customer Perspective ----- Its title in Hungarian: Az üzleti kapcsolatok értékének értelmezése a kognitív térkép módszerével: a vevői oldal

We consider Vvalue creation as a process achieved in a business relationship has turned out to be one of as the fundamental questions in of B2B marketing. Value creation is a process achieved in a business relationship. We put forward the hypotheses that the value of a business relationship presents a particular combination in time of economic and non-economic (social) components, which are interrelated. Both the buyer (purchasing) and the seller (marketing) always have their own interpretation of business relationship value. A cognitive approach is implemented to shed light on the collective representation of a value phenomenon and to understand the three levels (episode, relationship and network) and two-dimensional conceptualization of focal relationship value. Our research focuses on understanding, representing and a further measuring of the economic and non-economic components of the value of a business relationship using a causal mapping technique. -------------------------------- Az üzleti kapcsolatokon keresztül létrejövő értékteremtés folyamata napjainkban a szervezetközi (business) marketing alapvető kérdései közé tartozik. Kiinduló hipotézisünk, hogy az üzleti kapcsolatok értéke egymással összefüggő, gazdasági és nem-gazdasági (szociális) elemekben tevődik össze. Mind a vevő (beszerző), mind az eladó (marketinges) saját maga interpretálja, értelmezi az üzleti kapcsolat értékét. A kutatásunkban alkalmazott kognitív megközelítés lehetővé teszi az érték kollektív megjelenítését, és a fokális kapcsolati érték háromszintű (epizód, kapcsolat, hálózat) kétdimenziós megközelítését. Az üzleti kapcsolatok értékének gazdasági és nem gazdasági elemeinek megértésére, bemutatására és mérésére a kognitív térképek módszerét használjuk