Abstract
Environmental factors add complexity to the comparison between specific activities or entire entities. Decision making units with an inferior performance are tempted to invoke that their organization is ``different'' from the others in the data set. By reinterpreting and extending the metafrontier literature, we propose an all-embracing concept to fully capture the operational environment. We suggest the ``Group Specific Technical Efficiency'' as a new measure to assess the overall efficiency of a utility while allowing for environmental differences. A real-world example of drinking water utilities from five different countries
illustrates the concept.
illustrates the concept.
Original language | English |
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Pages (from-to) | 257-271 |
Journal | International Transactions in Operational Research |
Volume | 16 |
Issue number | 2 |
DOIs | |
Publication status | Published - 1 Jan 2009 |