Journal article 686 views 136 downloads
A generalized fuzzy Multiple-Layer NDEA: An application to performance-based budgeting
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Peter F. Wanke
Applied Soft Computing, Volume: 100, Start page: 106984
Swansea University Author:
Hamid Eskandari
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DOI (Published version): 10.1016/j.asoc.2020.106984
Abstract
Network data envelopment analysis (NDEA) is capable of considering operations and interdependence of a system’s component processes to measure efficiencies. There are numerous performance evaluation applications in which some indicators have hierarchical structures with a considerable number of sub-...
| Published in: | Applied Soft Computing |
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| ISSN: | 1568-4946 |
| Published: |
Elsevier BV
2021
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| Online Access: |
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa56031 |
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| Abstract: |
Network data envelopment analysis (NDEA) is capable of considering operations and interdependence of a system’s component processes to measure efficiencies. There are numerous performance evaluation applications in which some indicators have hierarchical structures with a considerable number of sub-indicators. This problem of ignoring the hierarchical structure of indicators weakens the discrimination power of NDEA models and may result in inaccurate efficiency scores. In this paper we propose a generalized fuzzy Multiple-Layer NDEA (GFML-NDEA) model and GFML-NDEA-based composite indicators (GFML-NDEA-CI) to incorporate the hierarchical structures of indicators in the ambit of the particular two-stage NDEA models. To demonstrate the usefulness of the GFMLNDEA-CI model proposed, its application was tested by evaluating the efficiency of the performance-based budgeting (PBB) system in 14 governmental agencies in Iran. The comparative analysis results obtained from the GFML-NDEA-CI (multi-layer) model with those from the single-layer fuzzy NDEA-CI model indicate that the number of efficient decision-making units (DMUs) in the one-layer model is eight, whereas it is solely one DMU in the multi-layer model. The discrimination power of the multi-layer model proposed is significantly increased by observing that standard deviation of efficiency scores are increased by 41%, 61%, and 84% for possibility levels 0, 0.5, and 1, respectively. This is obtained while reducing information entropy, thus suggesting that the proposed model yields more reliable scores. |
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| Keywords: |
DEA; Fuzzy logic; Performance-based budgeting; Maturity model; Network structure; Hierarchical structure |
| College: |
Faculty of Humanities and Social Sciences |
| Start Page: |
106984 |