A Two-stage Network Data Envelopment Analysis: An Education Sector Application

TL;DR

This paper introduces a two-stage relational network DEA model to analyze inefficiencies in decision-making units, specifically applied to Indian management institutes, capturing both quality and quantity aspects.

Contribution

It develops a novel two-stage network DEA approach that provides detailed insights into inefficiencies at each stage in the education sector.

Findings

Identified specific inefficiency causes in Indian management institutes.

Demonstrated the effectiveness of network DEA in capturing quality and quantity performance.

Provided a detailed performance evaluation framework for educational institutions.

Abstract

Data envelopment analysis (DEA) works like a black box that does not provide any adequate detail to identify the specific reason for inefficiency in decision-making units (DMUs). The motivation of this study is to analyze the cause of the inefficiency of DMUs in a decision process with the help of a two-stage relational network DEA model. In the current study, a two-stage relational network DEA model is applied to measure the performance of DMUs for the whole process and each stage independently. In general, past studies used conventional DEA models in education sectors to analyze the performances of educational institutions. In the current study, by considering quantitative attributes to measure the performance of Indian institutes of management (IIMs) by using network DEA, we develop a procedure that captures both quality and quantity.