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Iso-analysis for knowing the sources of technical efficiency and performance

Author

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  • Martin Bod′a

    (Matej Bel University in Banská Bystrica)

  • Emília Zimková

    (Matej Bel University in Banská Bystrica)

Abstract

The paper proposes an iso-analysis framework for performance evaluation of decision-making units for use in two basic set-ups. First, for two criterial dimensions of performance applied simultaneously, it is shown how groups of decision-making units formed on the principle of comparability in terms of their performance can be identified and graphically displayed in an ‘iso-performance chart’. In such iso-analysis, individual decision-making units are separated into iso-performance zones according to their bidimensional performance captured by means of an artificially constructed performance indicator that may be easily accommodated so as to reflect possibly differing importance of the considered performance dimensions. Second, it is explained how typically utilized non-orientated and non-radial measures of technical efficiency can be broken down into two sources associated with both sides of production process (i.e. an input efficiency component and an output efficiency component) and further investigated graphically in the format of an ‘input–output efficiency chart’. The elements of the proposed methodology are demonstrated in a case study of a Slovak commercial bank with an extensive retail branch network.

Suggested Citation

  • Martin Bod′a & Emília Zimková, 2018. "Iso-analysis for knowing the sources of technical efficiency and performance," Operational Research, Springer, vol. 18(2), pages 421-449, July.
    • Handle: RePEc:spr:operea:v:18:y:2018:i:2:d:10.1007_s12351-016-0271-8
    DOI: 10.1007/s12351-016-0271-8
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