Performance assessment of Two-stage network structures with the presence of contextual variables

Subject Areas : International Journal of Industrial Mathematics

Peiman Alidoust Zoghi ¹ , Maryam Nematizadeh ² , Maryeh Nematizadeh ³

1 - Department of Management, Islamic Azad University, Bandar Anzali Branch, Anzali, Iran
2 - Department of Mathematics, Islamic Azad University, Rasht Branch, Rasht, Iran
3 - Department of Mathematics, Technical and Vocational University (TVU), Rasht branch, Rasht, Iran

Received: 2023-04-28 Accepted : 2023-10-09 Published : 2024-03-17

Keywords: Network data envelopment analysis, Two-stage network, Non-cooperative, Contextual variable, Undesirable output.,

Abstract :

This research aims to evaluate the efficiency of a two-stage network structure by examining the impact of contextual variables on its performance. To accomplish this, a two-stage approach is implemented, which involves network data envelopment analysis (NDEA) in the first step and ordinary least squares (OLS) analysis in the second step. In the first step, a non-cooperative (Leader-Follower) model is employed to assess the efficiency of each sub-section within the two-stage process based on their inputs and outputs. In the second step, the logarithm of the estimated efficiency scores is regressed on the contextual variables to refine the network-specific efficiency. The performance of various Spanish airports is analyzed to demonstrate the effectiveness of this approach.