Abstract
This chapter provides the theoretical foundation and background on data envelopment analysis (DEA) method. We first introduce the basic DEA models. The balance of this chapter focuses on evidences showing DEA has been extensively applied for measuring efficiency and productivity of services including financial services (banking, insurance, securities, and fund management), professional services, health services, education services, environmental and public services, energy services, logistics, tourism, information technology, telecommunications, transport, distribution, audio-visual, media, entertainment, cultural and other business services. Finally, we provide information on the use of Performance Improvement Management Software (PIM-DEA). A free limited version of this software and downloading procedure is also included in this chapter.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
For latest information please see: http://www.DEAsoftware.co.uk
- 2.
(a) The evaluation period is for limited time only, (b) PIM Ltd has also provided a discount code for readers of this book, so at any time up to the end of your evaluation period you will have an option to upgrade to full version without any time limitation with a 10Â % discount, please see terms and condition at http://www.deasoftware.co.uk/MSP-book, (c) The discount code will be send to your email once you registered to download the trial version. (d) PIM Ltd reserves to withdraw this offer at any time and without notice.
References
Adler, N., & Golany, B. (2001). Evaluation of the deregulated airlines network using data envelopment analysis combined with principal component analysis with an application to Western Europe. European Journal of Operational Research, 132, 260–273.
Ariff, M., Cabanda, E., & Sathye, M. (2009). Privatization and performance: Evidence from telecommunications sector. Journal of the Operational Research Society, 60, 1315–1321.
Aubert, C., & Reynaud, A. (2005). The impact of regulation on cost efficiency: An empirical analysis of Wisconsin water utilities. Journal of Productivity Analysis, 23, 383–409.
Banker, R. D., Chang, H., & Kao, Y. (2002). Impact of information technology on public accounting firm productivity. Journal of Information Systems, 16(2), 209–222.
Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30, 1078–1092.
Barr, R., Kiligo, K., Siems, F., & Zimmel, S. (2002). Evaluating the productive efficiency and performance of U.S. commercial banks. Managerial Finance, 28(8), 3–25.
Bergendahl, G., & Lindblom, T. (2008). Evaluating the performance of Swedish savings banks according to service efficiency. European Journal of Operational Research, 185, 663–1673.
Berger, A., & Humphrey, D. (1997). Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research, 98, 175–212.
Biorn, E., Hagen, T. P., Iversen, T., & Magnussen, J. (2003). The effect of activity based on hospital efficiency: A panel data analysis of data envelopment analysis scores 1992–2004. Health Care Management Science, 6(4), 271–83.
Botti, L., Briec, W., & Clique, G. (2009). Plural forms versus franchise and company-owned systems: A DEA approach of Hotel Chain Performance. Omega, 37, 566–578.
Brockett, P. L., Cooper, W. W., Golden, L. L., Rousseau, J. J., & Wang, Y. (2005). Financial intermediary versus production approach to efficiency of marketing distribution systems and organizational structure of insurance companies. Journal of Risk and Insurance, 72(3), 393–412.
Casu, B., Girardone, C., & Molyneux, P. (2004). Productivity change in European banking: A comparison of parametric and non-parametric approaches. Journal of Banking and Finance, 28(10), 2521–2540.
Charnes, A., & Cooper, W. W. (1962). Programming with linear fractional functionals. Naval Research Logistics Quarterly, 9, 181–196. doi:10.1002/nav.3800090303.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making unit. European Journal of Operational Research, 2, 429–44.
Charnes, A., Cooper, W. W., & Rhodes, E. (1981). Evaluating program and managerial efficiency: An application of data envelopment analysis to program follow through. Management Science, 27, 668–697.
Cook, W. D., & Green, R. (2003). Evaluating power plant efficiency: A hierarchical model. Computers and Operations Research, 32(4), 813–823.
Cook, W. D., Kazakov, A., & Persaud, B. N. (2001). Prioritizing highway accident sites: A data envelopment analysis. Journal of the Operational Research Society, 52, 303–309.
Cook, W. D., Roll, Y., & Kazakov, A. (1990). A DEA model for measuring the relative efficiency of highway maintenance patrols. INFOR, 28, 113–124.
Cummins, J. D., & Zi, H. (1998). Comparison of frontier efficiency methods and application to the US life insurance industry. Journal of Productivity Analysis, 10, 131–152.
Dacosta-Claro, I., & Lapierre, S. (2003). Benchmarking as a tool for the improvement of health services’ supply departments. Health Services Management Research, 16, 211–223.
Dyson, R. G., Thanassoulis, E., & Boussofiane, A. (1990). Data envelopment analysis. In L. C. Hendry & R. Eglese (Eds.), Operational research tutorial papers (pp. 13–28). UK: The Operational Research Society.
Eling, M., & Luhnen, M. (2010). Efficiency in the international insurance industry: A cross-country comparison. Journal of Banking and Finance, 34, 1497–1509.
Emrouznejad, A., Cabanda, E., & Gholami, R. (2010). An alternative measure of the ICT-opportunity index. Information and Management, 47, 246–254.
Emrouznejad, A., & De Writte, K. (2010). COOPER-framework: A unified process for non-parametric projects. European Journal of Operational Research, 207(3), 1573–1586.
Emrouznejad, A., Parker, B. R., & Tavares, G. (2008). Evaluation of research in efficiency and productivity: A survey and analysis of the first 30 years of scholarly literature in DEA. Socio-Economic Planning Sciences, 42(3), 151–157.
Emrouznejad, A., & Thanassoulis, E. (2011). Performance improvement management software: PIM-DEAsoft-V3.0 user guide. ISBN: 978-1-85449-412-2.
Fecher, F., Keesler, D., Perelman, S., & Pesteieau, P. (1993). Productive performance of the French insurance industry. Journal of Productivity Analysis, 4, 77–93.
Field, K., & Emrouznejad, A. (2003). Measuring the performance of neonatal care units in Scotland. Journal of Medical Systems, 27(4), 315–324.
Fethi, M., & Pasiouras, F. (2010). Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey. European Journal of Operational Research, 204(2), 189–198.
Fukuyama, H. (1997). Investigating productive efficiency and productivity changes of Japanese life insurance companies. Pacific-Basin Finance Journal, 5, 481–509.
Fukuyama, H., & Weber, W. L. (2002). Evaluating public school district performance via DEA gain functions. Journal of the Operational Research Society, 53(9), 992–1003.
Goto, M. (2010). Financial performance analysis of US and world telecommunications companies: Importance of Information Technology in the telecommunications industry after the AT&T breakup and NTT divestiture. Decision Support Systems, 48, 447–456.
Harrison, J., & Sexton, C. (2006). The improving efficiency Frontier of religious not-for-profit hospitals. Hospital Topics, 84(1), 2–10.
Haugland, S. A., Myrtveit, I., & Nygaard, A. (2007). Market orientation and performance in the service industry: A data envelopment analysis. Journal of Business Research, 60(11), 1191–1197.
Hirschhausen, C. V., Cullmann, A., & Kappeler, A. (2006). Efficiency analysis of German electricity distribution utilities-non-parametric and parametric tests. Applied Economics, 38, 2553–2566.
Hjalmarsson, L., & Veiderpass, A. (1992). Productivity in Swedish electricity retail distribution. Scandinavian Journal of Economics, 94(Supplement), 193–205.
Ho, C.-T. B., Liao, C.-K., & Kim, H.-T. (2012). Valuing internet companies: A DEA-based multiple valuation approach. Journal of Operational Research Society, 62, 2097–2106.
Hofmarcher, M. M., Paterson, I., & Riedel, M. (2002). Measuring hospital efficiency in Austria – A DEA approach. Health Care Management Science, 5, 7–14.
Hollingsworth, B. (2008). The measurement of efficiency and productivity of health care delivery. Health Economics, 17(10), 1107–1128.
Huang, C.-W. Y.-H., Chiu, C.-T. T., & Lin, C.-H. (2012). Applying a hybrid DEA model to evaluate the influence of marketing activities to operational efficiency on Taiwan’s international tourist hotels. Journal of the Operational Research Society, 63, 549–560.
Hung, S.-W., Lu, W.-M., & Wang, T.-P. (2010). Benchmarking the operating efficiency of Asia container ports. European Journal of Operational Research, 203, 706–713.
Kao, C., & Hwang, S. N. (2008). Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan. European Journal of Operational Research, 185, 418–429.
Kirigia, J. M., Emrouznejad, A., Vaz, R. G., Bastiene, H., & Padayachy, J. (2008). A comparative assessment of performance and productivity of health centres in Seychelles. International Journal of Productivity and Performance Management, 57(1), 72–92.
Korhonen, P. K., & Syrjanen, M. J. (2003). Evaluation of cost efficiency in Finnish electricity distribution. Annals of Operations Research, 121, 105–122.
Luo, X., & Donthu, N. (2005). Assessing advertising media spending inefficiencies in generating sales. Journal of Business Research, 58(1), 28–36.
Madden, G., & Savage, S. (1999). Telecommunications productivity, catch-up and innovation. Telecommunications Policy, 23(1), 65–81.
Mayston, D. J. (2003). Measuring and managing educational performance. Journal of the Operational Research Society, 54(7), 679–691.
Moreno, A. A., & Tadepalli, R. (2002). Assessing academic department efficiency at a public university. Managerial and Decision Economics, 23, 385–97.
Nemoto, J., & Goto, M. (2003). Measurement of dynamic efficiency in production: An application of Data Envelopment analysis to Japanese electric utilities. Journal of Productivity Analysis, 9, 191–210.
Noulas, A., Glaveli, N., & Kiriakopoulos, I. (2008). Investigating cost efficiency in the branch network of a Greek bank: An empirical study. Managerial Finance, 34(3), 160–171.
Nunamaker, T. R. (1983). Measuring routine nursing service efficiency: A comparison of cost per patient day and data envelopment analysis models. Health Services Research, 18, 183–208.
Odeck, J. (2000). Assessing the relative efficiency and productivity of vehicle inspection services: An application of DEA and Malmquist indices. European Journal of Operational Research, 126, 501–514.
O’Neill, L., & Dexter, F. (2005). Methods for understanding super-efficient data envelopment analysis results with an application to hospital inpatient surgery. Health Care Management Science, 8, 291–298.
Paradi, J. C., & Zhu, H. (2013). A survey on bank branch efficiency and performance research with data envelopment analysis. Omega, 41(1), 61–79.
Park, J., Lee, S., & Kang, H. B. (2009). The insurance distribution systems and efficiency in the property casualty insurance industry. Managerial Finance, 35(8), 670–681.
Pastor, J. T., Knox Lovell, C. A., & Tulkens, H. (2006). Evaluating the financial performance of bank branches. Annals of Operations Research, 145, 321–337.
Pille, P., & Paradi, J. C. (2002). Financial performance analysis of Ontario (Canada) credit unions: An application of DEA in the Regulatory environment. European Journal of Operational Research, 139(2), 339–350.
Portela, M. C. A. S., Thanassoulis, E., Horncastle, A., & Maugg, T. (2011). Productivity change in the water industry in England and Wales: Application of the meta-Malmquist index. Journal of the Operational Research Society, 62, 2173–2188.
Prior, D. (2006). Efficiency and total quality management in health care organizations: A dynamic frontier approach. Annals of Operations Research, 145, 281–299.
Ray, S. C. (2007). The directional distance function and measurement of super-efficiency: An application to airlines data. Journal of the Operational Research Society, 1–10.
Sarrico, C. S., & Dyson, R. G. (2000). Using DEA for planning in UK universities-an institutional perspective. Journal of the Operational Research Society, 51(7), 789–800.
Sathye, M. (2002). Measuring productivity changes in Australian banking: An application of Malmquist indices. Managerial Finance, 28(9), 48–59.
Segovia-Gonzalez, M. M., Contreras, I., & Mar-Molino, C. (2009). A DEA analysis of risk, cost, and revenues in insurance. Journal of the Operational Research Society, 60, 1483–1494.
Shao, B. B. M., & Shu, W. S. (2004). Productivity breakdown of the information and computing technology industries across countries. Journal of the Operational Research Society, 55(1), 23–33.
Sherman, H. D. (1984). Hospital efficiency measurement and evaluation: Empirical-test of a new technique. Medical Care, 22, 922–938.
Sherman, G., & Gold, F. (1985). Bank branch operating efficiency: Evaluation with data envelopment analysis. Journal of Banking and Finance, 9, 297–315.
Sherman, H. D., & Zhu, J. (2006). Service Productivity Management. New York, NY: Springer.
Staat, M. (2006). Efficiency of Hospitals in Germany: a DEA-bootstrap Approach.
Tone, K., & Sahoo, B. K. (2005). Evaluating cost efficiency and returns to scale in the Life Insurance Corporation of India using data envelopment analysis. Socio-Economic Planning Sciences, 39, 261–285.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Emrouznejad, A., Cabanda, E. (2014). Managing Service Productivity Using Data Envelopment Analysis. In: Emrouznejad, A., Cabanda, E. (eds) Managing Service Productivity. International Series in Operations Research & Management Science, vol 215. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-43437-6_1
Download citation
DOI: https://doi.org/10.1007/978-3-662-43437-6_1
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-662-43436-9
Online ISBN: 978-3-662-43437-6
eBook Packages: Business and EconomicsBusiness and Management (R0)