Strategic alliances and partnerships based on the semi-additive production technology in DEA

Abstract

Strategic alliances and partnerships based on mergers and acquisitions can be used to improve the performance of decision-making units (DMUs). In this paper, we present different types of strategic alliance cooperation and partnership between DMUs and their corresponding aggregation DMUs. We propose two different strategies, we were able to carry out the process of strategic alliances and partnerships in semi-additive production technology. In the first strategy, two partner DMUs can compensate for the lack of resources in some of their input components by using excess input resources in some of each other's input components. Thus these DMUs can improve their efficiency score among all DMUs. The modeling of strategic alliances and partnerships in the first strategy was based on data envelopment analysis (DEA) models. In the second strategy, the two DMUs selected as partners adjust their input and output levels with the help of each other in such a way that these two DMUs achieve a target efficiency level predetermined by the DM. The modeling of strategic alliances and partnerships in the second strategy was based on inverse DEA models. We also apply the proposed approach to show importance strategic alliances and partnerships in banking. In the following, we compared the results of the models in carrying out the partnership process in two different technologies. The results showed that in semi-additive production technology, we can achieve potential gains for banks.