Applications of Bi-lateral DEA and Hierarchical DEA in Professional Services

Proceedings: Abstracts of the 5th World Conference on Business, Management, Finance, Economics and Marketing

Prof. Chandan Kumar Jha and Amit Sachan

Abstract

Purpose: This research work focuses on applications of advanced data envelopment analysis methods to evaluate the efficiency of professional services in the context of higher educational institutions (HEIs). The research study also explores the importance and impact of “establishment period” and “geographical locations” on the efficiency of HEIs.

Design/methodology/approach: After reviewing the past literature, we have considered eight input/output variables related to HEIs and used bilateral and hierarchical data envelopment analysis (BDEA & HDEA) models to analyze the impact of establishment period and locational variables (determinants of efficiency) on overall efficiency of HEIs.

Findings: Teaching and research efficiency in Indian business institutions differ significantly. The outcomes, nevertheless, indicate that business schools founded during the period from 1990 to 2000 exhibit greater efficiency, as predicted by the bilateral and hierarchical DEA models. One could contend that the institutes were able to rapidly transform into centres of excellence due to the period's concurrence with the opening of the Indian economy and a period of rapid development. Due to the advantageous proximity of economic centres to business colleges, it has been observed that establishments situated in tier-1 cities operate with greater efficiency.

Research implications: The results of this research possess the potential to assist policymakers in their deliberations concerning the distribution of diverse incentives and resources. In addition, these results will provide guidance to decision-makers regarding the process of benchmarking these business institutions.

Originality/value: This study is one of the limited number of research endeavours that examine the performance evaluation of business institutions across multiple categories of decision-making units, using bilateral and hierarchical DEA models

Keywords: DEA, Business Schools, Higher Education, Performance Evaluation, Hierarchical DEA, Bilateral DEA