Using Value Efficiency Analysis to Benchmark Nonhomogeneous Units

Merja Halme () and Pekka Korhonen
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Merja Halme: Aalto University, School of Economics, Department of Information and Service Economy, P. O. Box 21220, 00076 Aalto, Helsinki, Finland

International Journal of Information Technology & Decision Making (IJITDM), 2015, vol. 14, issue 04, 727-745

Abstract: We consider the problem of evaluating the performance of a set of heterogeneous units. The heterogeneity may originate from environmental conditions or the unit itself. We propose a comparison of the units with benchmark units that perform well and represent various types of heterogeneity. The benchmark units are specified by a decision maker and used as alternative most preferred units in the value efficiency analysis. Each unit is associated with the best benchmark unit, in the spirit of the data envelopment analysis. The approach simultaneously takes into account preference information and the heterogeneity of units. We developed the approach to provide a framework for quantitative performance comparison for the Helsinki parishes. The parishes have heterogeneous structures and operate in various environments leading to different emphases of outputs. The special feature of the approach is that it is does not require the characterization of the heterogeneity by quantitative measures.

Keywords: Data envelopment analysis; heterogeneity; environmental effects; value efficiency; performance (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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DOI: 10.1142/S0219622014500916

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