Measuring Efficiency using Dynamic Network-Based Data Envelopment Analysis

Enhancing efficiency is a critical objective of corporate management. While numerous approaches to measure efficiency have been devised, this manuscript suggests a new method referred to as dynamic network-based Data Envelopment Analysis (DEA) as a more advanced procedure for examining transaction priorities in any network based organization. Using dynamic network-based DEA it is possible to detect system-wide impacts when marginal systemic changes occur. This newer method was tested using data drawn from Mazdars Yokokai keiretsu to illustrate the effect that transactions among member firms in the network have on sales revenues. The finding of the study are discussed based on which managerial implications in the formulation of corporate strategy are proffered. Study drawbacks are identified and avenues for future research are suggested