Output–input ratio analysis and DEA frontier

Chen, Yao; Ali, Agha Iqbal

doi:10.1016/s0377-2217(01)00318-6

Cited by 51 publications

(20 citation statements)

References 5 publications

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“…We take the role of resource manager and recognize that resources are scarce and we cannot afford to waste them (Chen and Ali, 2002). We want biotechnology companies to be productive so that they can provide better service in light of constraints and attract more investors.…”

Section: Asian Economic and Financial Reviewmentioning

confidence: 99%

Using DEA and Malmquist Productivity Index to Analyze the Operational Efficiency of Taiwan Biotechnological Industry

Liu

2017

Asian Economic and Financial Review

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Article HistoryThis study employs data envelopment analysis (DEA) method and Malmquist productivity index (MPI) to reexamine the change of operational efficiency for both individual firm and whole biotechnological industry. Concerning the whole industry, lower efficiency of the industry is mostly caused by pure technological inefficiency. When applying the sense of total factor productivity (TFP) index, the changes of TFP in biotechnological industry is most accounted for the efficiency changes rather than technological charges. These results benefit to biotechnology industry managers and regulators through the provision of useful guidelines for management control within the competitive biotechnological industry and market.Contribution/ Originality: This study contributes in the existing literature with employing DEA and MPI to reexamine the change of operational efficiency for biotechnological industry in Taiwan. Concerning the whole industry, lower efficiency of industry is mostly caused by pure technological inefficiency. The changes of TFP is mostly accounted for the efficiency changes.

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Section: Asian Economic and Financial Reviewmentioning

confidence: 99%

Using DEA and Malmquist Productivity Index to Analyze the Operational Efficiency of Taiwan Biotechnological Industry

Liu

2017

Asian Economic and Financial Review

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“…The basic idea behind DEA is that global performance is given by the ratio of the sum of weighted output levels to the sum of weighted input levels (Chen and Iqbal Ali 2002). Although this useful method allows one to estimate performance without any ex ante assumptions about the form of the production function it has two main drawbacks.…”

Section: Introductionmentioning

confidence: 99%

Visual management of performance with PROMETHEE productivity analysis

2017

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Multi-criteria decision analysis has been used to solve many problems. Here we describe an adaptation of PROMETHEE for measuring productivity. The results of PROMETHEE productivity analysis are displayed graphically, permitting the user to distinguish easily between four types of action: efficient, effective, frugal and inefficient actions. The productivity graph can be used for visual management and provides a simple, effective means of improving information communication within an organisation. It enhances transparency and promotes continuous improvement. Steps can be taken to improve ineffective actions using peer(s) on the frontier as example. To illustrate the use of the method we analysed the productivity of British universities. Only two old and two of the most recent universities were found to be on the frontier. Almost all of the most recent universities were classed as frugal and post-92 universities tended to be inefficient. Large old universities were generally classed as effective.

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“…Notable exceptions are the papers by Thanassoulis et al (1996), Chen and Ali (2002) and Chen and McGinnis (2005). In the first paper DEA results are empirically compared with various summary measures defined on the set of all possible ratios between outputs and inputs using mainly statistical observations and the mathematical rationale employed in both methods.…”

Section: Introductionmentioning

confidence: 99%

“…In the first paper DEA results are empirically compared with various summary measures defined on the set of all possible ratios between outputs and inputs using mainly statistical observations and the mathematical rationale employed in both methods. Chen and Ali (2002) prove some interesting relationships between the DEA frontier and output-input ratios in order to speed up DEA computation while Chen and McGinnis (2005) look into the relationship between Ratio Analysis and DEA from the production economic perspective. None of these papers however considers the DEA-R model per se nor does any of them address weight restrictions in any way.…”

Section: Introductionmentioning

confidence: 99%