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Past-present-future Intertemporal DEA models

Tsung-Sheng Chang, Kaoru Tone and Chen-Hui Wu
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Tsung-Sheng Chang: National Chiao Tung University, Taiwan
Kaoru Tone: National Graduate Institute for Policy Studies, Japan
Chen-Hui Wu: National Dong Hwa University, Taiwan

Journal of the Operational Research Society, 2015, vol. 66, issue 1, 16-32

Abstract: It has been well recognized that to thoroughly evaluate a firm’s performance, the evaluator must assess not only its past and present records but also future potential. However, to the best of our knowledge, there are no data envelopment analysis (DEA)-type models proposed in the literature that simultaneously take past, present and, especially, future performance indicators into account. Hence, this research aims at developing a new type of DEA model referred to as Intertemporal DEA models that can be used to fully measure a firm’s efficiency by explicitly considering its key inputs and outputs involving the past-present-future time span. In this research, the proposed Intertemporal DEA models are applied to the performance evaluation of high-tech Integrated Circuit design companies in Taiwan to demonstrate their advantages over other DEA models that ignore intertemporal efficiency.

Date: 2015
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