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Measuring Effectiveness: A DEA Approach Under Predetermined Targets

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  • Heinz Ahn

    (Institute of Management Control & Business Accounting, Technische Universität Braunschweig, Braunschweig, Germany)

  • Ludmila Neumann

    (Institute of Management Control & Business Accounting, Technische Universität Braunschweig, Braunschweig, Germany)

Abstract

This paper presents a Data Envelopment Analysis approach that evaluates the relative effectiveness of decision making units (DMUs) in the presence of predetermined targets which are to be achieved simultaneously. As such targets are a core element of common performance management systems, the approach is a desirable complement of these systems. The proposed method classifies the DMUs into subsets according to their ability to meet the targets and provides a complete ranking within each subset on the basis of a measure of relative effectiveness. For that purpose, we introduce a new concept called super-effectiveness. The approach is illustrated by means of an example referring to a European pharmacy chain.

Suggested Citation

  • Heinz Ahn & Ludmila Neumann, 2014. "Measuring Effectiveness: A DEA Approach Under Predetermined Targets," International Journal of Business Analytics (IJBAN), IGI Global, vol. 1(1), pages 16-28, January.
    • Handle: RePEc:igg:jban00:v:1:y:2014:i:1:p:16-28
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    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/ijban.2014010102
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    Cited by:

    1. Ravanos, Panagiotis & Karagiannis, Giannis, 2022. "Tricks with the BoD model and an application to the e-Government Development Index," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    2. Mousavi, Mohammad M. & Ouenniche, Jamal & Xu, Bing, 2015. "Performance evaluation of bankruptcy prediction models: An orientation-free super-efficiency DEA-based framework," International Review of Financial Analysis, Elsevier, vol. 42(C), pages 64-75.
    3. Marcel Clermont, 2016. "Effectiveness and efficiency of research in Germany over time: an analysis of German business schools between 2001 and 2009," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(3), pages 1347-1381, September.

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