Abstract
Abstract Our motivation of this study is to provide a data envelopment analysis (DEA) approach for evaluating and decomposing the operation efficiency, moreover, computing the coordination efficiency of systems with complex internal structure. We consider a two-stage system composed of three sub-systems, where the first stage is comprised of two independent sub-systems in parallel and then linked to the second stage or the third sub-system in series. Additive and multiplicative DEA efficiency measures are proposed to be jointly applied to illustrate the efficiency formation mechanism of the parallel-series system. The definition of coordination efficiency is inspired by the “gap” between accomplished optimal efficiency and idealized maximal efficiency of relevant systems. This study contributes in creating novel means to consider the different structural characteristics in the efficiency assessment of complex network systems, and to measure the externalities in terms of efficiency within their interior. The proposed models are demonstrated by revisiting the case of Taiwanese non-life insurance companies studied by Kao and Hwang. Corresponding implications of the empirical application are also discussed.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
