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A DEA-based Benchmarking Framework in terms of Organizational Context  

Seol, Hyeong-Ju (Department of Industrial Engineering, Korea Air Force Academy)
Lim, Sung-Mook (Division of Business Administration, Korea University)
Park, Gwang-Man (Technology Strategy Research Division, Electronics and Telecommunications Research Institute)
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Abstract
Data envelopment analysis(DEA) has proved to be powerful for benchmarking and has been widely used in a variety of settings since the advent of it. DEA can be used in identifying the best performing units to be benchmarked against as well as in providing actionable measure for improvement of a organization's performance. However, the selection of performance benchmarks is a matter of both technical production possibilities and organizational policy considerations, managerial preferences and external restrictions. In that regards, DEA has a limited value in benchmarking because it focuses on only technical production Possibilities. This research proposes a new perspective in using DEA and a frame-work for benchmarking to select benchmarks that are both feasible and desirable in terms of organizational context. To do this, the concept of local and global efficiency is newly proposed. To show how useful the suggested concept and framework are, a case study is addressed.
Keywords
benchmarking; data envelopment analysis; global efficiency; local efficiency; organizational context;
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