Applying DEA and PLS path modeling for efficiency evaluation

Authors:
Wei-Wen Wu
Affiliations:
Department of International Trade, Ta Hwa Institute of Technology, Chiung-Lin, Hsin-Chu, Taiwan
Venue:
WSEAS TRANSACTIONS on SYSTEMS
Year:
2009

Citing 6
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Abstract

Organizations need to work on productivity improvement in order to enhance their operational performances. A number of works have taken efforts in efficiency evaluation and ranking using analytic methods such as the data envelopment analysis (DEA). However, few works have highlighted the relationship among significant factors that affect productivity. Performing efficiency evaluation and ranking is essential for productivity improvement. Apart from that, it is also a requirement to create a clear picture in terms of the relationship among critical productivity factors. PLS path modeling is a popular causal analysis technique, by which a causal map can be created. Therefore, this paper suggests a solution combining DEA with PLS path modeling for conducting a more profound efficiency evaluation. In addition, an empirical study of the hotel industry in Taiwan is presented to illustrate the application of the proposed solution.