PERFORMANCE MEASUREMENT USING A NOVEL DIRECTIONAL DISTANCE FUNCTION BASED SUPER EFFICIENCY MODEL AND NEIGHBOURHOOD THEORY

摘要

This paper entails a systematic approach for measuring the Super Efficiency Scores of a set of rival firms. This evaluation process is dependent on the location of the worst Decision-Making Unit retained by the technology set. Unlike antecedent researches, the worst point is selected from a predefined neighbourhood with an application of a linear model. Finally, the new Super Efficiency model measures the Efficiency score while embedding the worst point within the direction vector. This two-stage model is akin to the standard form of a Directional Distance Function and does not end up with problems of infeasibility, negative data or zero data. In other words, the method is found robust to classify the Decision Making Units into the Super-Efficient, Strongly Efficient, Weakly Efficient and Inefficient groups. Two cases once addressed by Seiford and Zhu [INFORS 37 (1999) 174-187.] and Byrnes et al. [Manag. Sci. 30 (1984) 671-681.] are illustrated here to explore the functionality of the model in comparison to a few renowned ones.