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Context-based competition strategy and performance analysis with fixed-sum outputs: an application to banking sector

Author

Listed:
  • Alireza Amirteimoori

    (Islamic Azad University)

  • Simin Masrouri

    (Islamic Azad University)

  • Feng Yang

    (University of Science and Technology of China)

  • Sohrab Kordrostami

    (Islamic Azad University)

Abstract

In the prior literature on performance measurement of firms with fixed-sum outputs, an equilibrium-efficient frontier is constructed. This paper shows that a single equilibrium-efficient frontier needs a significant trade-off between efficient and inefficient firms, and this may be impossible in practical applications. We develop a data envelopment analysis (DEA) model to construct multiple equilibrium-efficient frontiers in the presence of fixed-sum outputs. The approach uses context-dependent DEA that refers to a DEA approach where a set of firms are assessed against a particular assessment context. Numerical examples are used to illustrate the applicability of the approach.

Suggested Citation

  • Alireza Amirteimoori & Simin Masrouri & Feng Yang & Sohrab Kordrostami, 2017. "Context-based competition strategy and performance analysis with fixed-sum outputs: an application to banking sector," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(11), pages 1461-1469, November.
    • Handle: RePEc:pal:jorsoc:v:68:y:2017:i:11:d:10.1057_s41274-017-0180-0
    DOI: 10.1057/s41274-017-0180-0
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    Cited by:

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    2. Zhu, Qingyuan & Li, Xingchen & Li, Feng & Wu, Jie & Zhou, Dequn, 2020. "Energy and environmental efficiency of China's transportation sectors under the constraints of energy consumption and environmental pollutions," Energy Economics, Elsevier, vol. 89(C).
    3. Lucas Assunção & Andréa Cynthia Santos & Thiago F. Noronha & Rafael Andrade, 2021. "Improving logic-based Benders' algorithms for solving min-max regret problems," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(2), pages 23-57.
    4. Sebastián Lozano & Gabriel Villa, 2023. "Multiobjective centralized DEA approach to Tokyo 2020 Olympic Games," Annals of Operations Research, Springer, vol. 322(2), pages 879-919, March.
    5. Bouzidis, Thanasis & Karagiannis, Giannis, 2022. "An alternative ranking of DMUs performance for the ZSG-DEA model," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    6. Yu, Shasha & Lei, Ming & Deng, Honghui, 2023. "Evaluation to fixed-sum-outputs DMUs by non-oriented equilibrium efficient frontier DEA approach with Nash bargaining-based selection," Omega, Elsevier, vol. 115(C).
    7. Lozano, Sebastián, 2023. "Bargaining approach for efficiency assessment and target setting with fixed-sum variables," Omega, Elsevier, vol. 114(C).
    8. Lozano, Sebastián & Contreras, Ignacio, 2022. "Centralised resource allocation using Lexicographic Goal Programming. Application to the Spanish public university system," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    9. Thanasis Bouzidis & Giannis Karagiannis, 2022. "Extending the zero-sum gains data envelopment analysis model," Journal of Productivity Analysis, Springer, vol. 58(2), pages 171-184, December.
    10. Li, Feng & Zhang, Danlu & Zhang, Jinyu & Kou, Gang, 2022. "Measuring the energy production and utilization efficiency of Chinese thermal power industry with the fixed-sum carbon emission constraint," International Journal of Production Economics, Elsevier, vol. 252(C).
    11. Thanasis Bouzidis & Giannis Karagiannis, 2021. "An Alternative Ranking of DMUs Performance for the ZGS-DEA Model," Discussion Paper Series 2021_12, Department of Economics, University of Macedonia, revised Oct 2021.
    12. Thanasis Bouzidis & Giannis Karagiannis, 2022. "Extending the Zero-Sum Gains Data Envelopment Analysis Model," Discussion Paper Series 2022_06, Department of Economics, University of Macedonia, revised Aug 2022.
    13. Xi Xiong & Guo-liang Yang & Kai-di Liu & De-qun Zhou, 2022. "A proposed fixed-sum carryovers reallocation DEA approach for social scientific resources of Chinese public universities," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(7), pages 4097-4121, July.

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