The Efficiency Measurement of Indonesian Universities Based on a Fuzzy Data Envelopment Analysis

Abstract

The main objective of this study is to measure the relative efficiency of Indonesian universities in 2015. There are twenty five DMUs with four inputs and five outputs that are analyzed. Due to the low number of Indonesian scientific publications, this study analyses the performance of the top 25 universities based on the Webometrics ranking as it has been used as one of the indicators of university achievements by the Higher Education of Indonesia. The Data Envelopment Analysis (DEA) is used to obtain the scores of efficiency, while the Fuzzy approach is applied to address the possibility of errors from the auditor's assessment in determining the input and output variables correctly. The FDEA can be used in measuring the universities performances under imprecise inputs and outputs. Both the CRS (constant returns to scale) and the VRS (variable returns to scale) models are presented. The empirical results show that 36 percent of universities perform efficiently on the CRS model while 52 percent of universities have efficient performances under the VRS model. Furthermore, the well-known universities have shown relatively low scores, which indicate they need to improve their performances in publishing scientific work, as well as providing useful information to the public through the official websites. Generally, the results of the VRS model are better than the CRS model for both the DEA and the FDEA methods.

Qualitative data envelopment assessment of different alumina refinery plants: the case of bauxite mining in West Kalimantan Province

“…CRS is one of the most common procedures for comparisons of the performance of multiple large firms. Fuzzy DEA can be more appropriate in most other circumstances [14]. Numerous researchers have investigated the presence of both qualitative and quantitative factors [15].…”

Efficiency in Indonesian Higher Education: Different Governance Leads to Different Performance

“…In the context of developing countries, such as Indonesia, efficiency is still a big problem for public higher education. Some leading universities have problems in managing resources to produce world class university outputs (Mahmudah & Lola, 2016). The same thing also happens in eight teacher training universities as they struggle to produce their educational output (Jati, 2015).…”

Data Envelopment Analysis for the Efficiency of Higher Education Departments at Sepuluh Nopember Institute of Technology, Indonesia

“…This study employed two DEA models and the result showed that 12 and 17 provinces out of 34 provinces in Indonesia are efficient and three environmental variables significantly affect the efficiency score. Another study examined efficiency at the university level (Mahmudah & Lola, 2016). This study examined the top 25 universities in Indonesia in 2015 using DEA and fuzzy DEA.…”