Flexible target setting in mergers using inverse data envelopment analysis

Gholam R. Amin*, Amar Oukil

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

In a merger, one important issue is the estimation of the levels of inputs and outputs required from each merging decision-making unit (DMU) so that the merged entity can realise a desired efficiency target. This paper uses the potential of inverse data envelopment analysis (InvDEA) to build a flexible target setting of the inputs and outputs. This study expands the application of the InvDEA methodology in a merger by introducing a flexible target setting that allows the decision maker to favour specific input in the target setting. We use a dataset of 30 universities to illustrate the practical scope of the proposed flexible target setting method, which can obviously be employed in any other merging context.

Original languageEnglish
Pages (from-to)301-317
Number of pages17
JournalInternational Journal of Operational Research
Volume35
Issue number3
DOIs
Publication statusPublished - 2019
Externally publishedYes

Keywords

  • Data envelopment analysis
  • DEA
  • Flexible target setting
  • InvDEA
  • Inverse data envelopment analysis
  • Mergers
  • Multiple optimal solutions

ASJC Scopus subject areas

  • Management Science and Operations Research

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