General and multiplicative non-parametric corporate performance models with interval ratio data

Ali Emrouznejad, Mohsen Rostamy-Malkhalifeh, Adel Hatami-Marbini, Madjid Tavana

Research output: Contribution to journalArticle

Abstract

The increasing intensity of global competition has led organizations to utilize various types of performance measurement tools for improving the quality of their products and services. Data envelopment analysis (DEA) is a methodology for evaluating and measuring the relative efficiencies of a set of decision making units (DMUs) that use multiple inputs to produce multiple outputs. All the data in the conventional DEA with input and/or output ratios assumes the form of crisp numbers. However, the observed values of data in real-world problems are sometimes expressed as interval ratios. In this paper, we propose two new models: general and multiplicative non-parametric ratio models for DEA problems with interval data. The contributions of this paper are fourfold: (1) we consider input and output data expressed as interval ratios in DEA; (2) we address the gap in DEA literature for problems not suitable or difficult to model with crisp values; (3) we propose two new DEA models for evaluating the relative efficiencies of DMUs with interval ratios, and (4) we present a case study involving 20 banks with three interval ratios to demonstrate the applicability and efficacy of the proposed models where the traditional indicators are mostly financial ratios.
Original languageEnglish
Pages (from-to)5506-5514
Number of pages9
JournalApplied Mathematical Modelling
Volume36
Issue number11
DOIs
Publication statusPublished - Nov 2012

Keywords

  • data envelopment analysis
  • corporate performance
  • multiplicative non-parametric
  • interval data
  • ratio analysis

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