Measuring and decomposing group performance under centralized management

Lei Fang

European Journal of Operational Research, 2022, vol. 297, issue 3, 1006-1013

Abstract: To compare the performance of groups under central management scenarios, a metafrontier centralized performance index was recently proposed and decomposed into the efficiency index and the technological gap index. However, we identify a significant drawback of the index decomposition. Using a simple numerical example, we show that the interpretation of the technological gap component in terms of the dominance of the best-practice frontier can be inconsistent with its numerical value, thereby resulting in an erroneous interpretation of this component. To overcome the drawback, in this paper, we propose a new approach to decompose the metafrontier centralized performance index. Finally, an empirical example is used to illustrate the advantages of the proposed approach.

Keywords: Data envelopment analysis; Group performance; Centralized management (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:297:y:2022:i:3:p:1006-1013

DOI: 10.1016/j.ejor.2021.05.016

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