A dominance-based network method for ranking efficient decision-making units in data envelopment analysis

Jiyoung Lee, Gyunghyun Choi

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Ranking of efficient decision-making units (DMUs) using data envelopment analysis (DEA) results is very important for various purposes. We propose a new comprehensive ranking method using network analysis for efficient DMUs to improve the discriminating power of DEA. This ranking method uses ameasure, namely dominance value,which is a network centrality-based indicator. Thus far, existing methods exploiting DMU's positional features use either the superiority, which considers the efficient DMUs' relative position on the frontier compared to other DMUs, or the influence, which captures the importance of the DMUs' role as benchmarking targets for inefficient DMUs. However, in this research, the dominance value is the compounded measure of both core positional features of DMUs. Moreover, a network representation technique has been used to ensure the performance of the dominance value compared to the superiority and influence. To demonstrate the proposed ranking method, we present two examples, research and development (R&D) efficiency of small and medium-sized enterprises (SMEs) and technical efficiency of plug-in hybrid electric vehicles (HEVs). Through these two examples,we can see howthe knownweaknesses and the unobserved points in the existingmethod differ in this new method. Hence, it is expected that the proposed method provides another new meaningful ranking result that can show different implications.

Original languageEnglish
Article number2059
JournalSustainability (Switzerland)
Volume11
Issue number7
DOIs
StatePublished - 2019 Apr 1

Fingerprint

data envelopment analysis
Data envelopment analysis
ranking
data analysis
Decision making
decision making
Plug-in hybrid vehicles
Values
small and medium-sized enterprise
electric vehicle
efficiency
technical efficiency
benchmarking
network analysis
Benchmarking
Electric network analysis
method
research and development
performance

Keywords

  • Data envelopment analysis
  • Dominance value
  • Network centrality
  • Ranking
  • Sustainability

Cite this

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abstract = "Ranking of efficient decision-making units (DMUs) using data envelopment analysis (DEA) results is very important for various purposes. We propose a new comprehensive ranking method using network analysis for efficient DMUs to improve the discriminating power of DEA. This ranking method uses ameasure, namely dominance value,which is a network centrality-based indicator. Thus far, existing methods exploiting DMU's positional features use either the superiority, which considers the efficient DMUs' relative position on the frontier compared to other DMUs, or the influence, which captures the importance of the DMUs' role as benchmarking targets for inefficient DMUs. However, in this research, the dominance value is the compounded measure of both core positional features of DMUs. Moreover, a network representation technique has been used to ensure the performance of the dominance value compared to the superiority and influence. To demonstrate the proposed ranking method, we present two examples, research and development (R&D) efficiency of small and medium-sized enterprises (SMEs) and technical efficiency of plug-in hybrid electric vehicles (HEVs). Through these two examples,we can see howthe knownweaknesses and the unobserved points in the existingmethod differ in this new method. Hence, it is expected that the proposed method provides another new meaningful ranking result that can show different implications.",
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A dominance-based network method for ranking efficient decision-making units in data envelopment analysis. / Lee, Jiyoung; Choi, Gyunghyun.

In: Sustainability (Switzerland), Vol. 11, No. 7, 2059, 01.04.2019.

Research output: Contribution to journalArticleResearchpeer-review

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