Abstract
The convexity of meta-frontier is a debated topic in data envelopment analysis (DEA). This paper claims that meta-frontier is a non-convex hull, but the production activities between the non-convex meta-frontier and the convex traditional production frontier may be feasible. Therefore, technology compatibility is defined to explain this feasibility, and a modified DEA model is constructed to evaluate the efficiency of decision-making units with technology heterogeneity and technology compatibility. Sequentially, two new meta-frontier DEA frameworks are constructed to evaluate and decompose efficiency, thereby revealing the impact of technology heterogeneity and technology compatibility on efficiency. In addition, a series of discussions are presented to analyze these two new frameworks.
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Acknowledgements
This research is supported by National Natural Science Foundation of China (#72171052), General Project of Natural Science Foundation of Fujian Province (#2021J01568); Key Project of National Statistical Science Research (No. 2022LZ12), and Fujian Province’s “Young Eagle Plan” Youth Top Talents Project.
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Chen, L., Lan, YX. & Wang, S. Convex or non-convex? A new meta-frontier data envelopment analysis framework considering technology compatibility. OR Spectrum (2024). https://doi.org/10.1007/s00291-024-00753-3
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DOI: https://doi.org/10.1007/s00291-024-00753-3