Context-based competition strategy and performance analysis with fixed-sum outputs: an application to banking sector

• DOI: 10.1057/s41274-017-0180-0
• Publication Date: 2017-02-08T18:27:59Z
• Authors: Alireza Amirteimoori; Simin Masrouri; Feng Yang; Sohrab Kordrostami
• Keywords: 0202 electrical engineering, electronic engineering, information engineering; 02 engineering and technology

In the prior literature on performance measurement of firms with fixed-sum outputs, an equilibrium-efficient frontier is constructed. This paper shows that a single equilibrium-efficient frontier needs a significant trade-off between efficient and inefficient firms, and this may be impossible in practical applications. We develop a data envelopment analysis (DEA) model to construct multiple equilibrium-efficient frontiers in the presence of fixed-sum outputs. The approach uses context-dependent DEA that refers to a DEA approach where a set of firms are assessed against a particular assessment context. Numerical examples are used to illustrate the applicability of the approach.