V.K. Narayanan, Frank L. Douglas, Brock Guernsey and John Charnes
Every merger and acquisition deal presents a different goal and a different mix of critical issues to manage. Making, consummating, and integrating a deal puts pressure on chief…
Abstract
Every merger and acquisition deal presents a different goal and a different mix of critical issues to manage. Making, consummating, and integrating a deal puts pressure on chief executives to play multiple leadership roles and switch quickly from one role to another throughout the merger process. The roles employed vary dramatically with the type of deal and how ambitious the strategy. As the rationales for transactions have changed, new challenges have evolved, especially for those leading the deals: leaders must establish and communicate the strategic vision for the merger ‐‐ they need to explain the top four or five sources of value in the deal and what the core values and culture of the new organization should be; leaders must cheer on the stakeholders to generate enthusiasm for the merger or acquisition, and to confront fear and uncertainty in its various forms; leaders must close the deal; leaders captain change by managing the integration of the two entities; and leaders crusade for the new entity. These five roles are essential to all transactions, but leaders need to employ each at different times. The strategic rationale behind the deal, and the inherent risks and opportunities that it presents, determines which roles a leader needs to play and when.
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Yaw M. Mensah, Kevin C. K. Lam and Robert H. Werner
We present, in this study, a method for comparing the relative effectiveness of different non-profit institutions with similar objectives. In addition, we show how this measure of…
Abstract
We present, in this study, a method for comparing the relative effectiveness of different non-profit institutions with similar objectives. In addition, we show how this measure of relative effectiveness is related theoretically to their relative efficiency. Relative effectiveness is shown to be a product of the efficacy with which potentially utilizable resources can be converted into usable inputs, and the efficiency with which the inputs are converted to outputs or outcomes. Finally, drawing on developments in data envelopment analysis, we illustrate the new methodology using data from 109 institutions of higher education.
Data envelopment analysis (DEA) is used to determine the relative efficiency of the top-ranked gynecology departments in the United States as designated by the U.S. News & World…
Abstract
Data envelopment analysis (DEA) is used to determine the relative efficiency of the top-ranked gynecology departments in the United States as designated by the U.S. News & World Report ranking. DEA is a linear programming base procedure used to determine the relative efficiency of operating units that have similar characteristics. Efficiency scores are calculated by comparing two different input sets to the performance of each gynecological department. Ranking based on DEA more completely and accurately represents gynecological departments. Further, DEA makes it possible to fairly compare specific departments. The new ranking coupled with the efficiency score accrued by each hospital will motivate and guide hospital administrators to improve the performance of hospital gynecology departments by better utilizing expensive resources.
Steven Fisher, Robert Chi, Dorothy Fisher and Melody Kiang
The purpose of this paper is to generate an understanding of the value-added to students enrolled in selected undergraduate business programs from an academic and market…
Abstract
Purpose
The purpose of this paper is to generate an understanding of the value-added to students enrolled in selected undergraduate business programs from an academic and market perspectives. Although there are numerous studies that rank undergraduate colleges and universities, the selection of the “best value” undergraduate business program is a formidable task for prospective students. This study uses data envelopment analysis (DEA), a linear programming-based tool, to evaluate undergraduate business administration programs. The DEA model connects costs (inputs) with benefits (outputs) to evaluate the value-added to students by undergraduate business programs from a market as well as academic perspectives. The study’s findings should assist prospective students in selecting business programs that provide the best value from their individual perspectives. The results can also help schools to identify their corresponding market niche and allocate their recourses more effectively.
Design/methodology/approach
Use DEA method. DEA was developed by Charnes et al. (1979) to evaluate the performance of multi-input and -output production operations. The analytical and computational capacities of DEA are firmly based on mathematical theory.
Findings
This study takes a different approach toward the ranking of college programs. Most studies rank-order programs (universities) based on arbitrary weightings of attributes of quality and provide a general ranking of programs that is said meet the needs of many different constituencies including students, parents, donors, administrators’ faculty and alumni.
Originality/value
This is an original research using DEA and The Bloomberg/Businessweek online data for business school ranking.
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Guan H. Lim and Dipinder S. Randhawa
Hong Kong and Singapore are economically similar and rival international financial centers. Banks in both Hong Kong and Singapore operate in very similar environments…
Abstract
Hong Kong and Singapore are economically similar and rival international financial centers. Banks in both Hong Kong and Singapore operate in very similar environments: internationally oriented with protected domestic banking market and firm regulators. With liberalization under the Financial Services Accord of the World Trade Organization (WTO), comes more competition and the growing importance for banks to ensure that they are X‐efficient so as to compete successfully or risk being marginalized. This paper uses data envelopment analysis (DEA) to assess X‐efficiency of banks in Hong Kong and Singapore via a two‐stage (combining both the intermediation and production stages) banking model. Changes in X‐efficiency over time are computed to determine if policy initiatives have facilitated improvements in efficiency. Our results on X‐efficiency of banks demarcated by size and ownership provide valuable insights into the issues of scale economies and the impact of family ownership on X‐efficiency.
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Mauro Falasca and John F. Kros
As the pressure to win and generate revenue and as the allegations of out-of-control spending continue to increase, there exists much interest in intercollegiate athletics. While…
Abstract
As the pressure to win and generate revenue and as the allegations of out-of-control spending continue to increase, there exists much interest in intercollegiate athletics. While researchers in the past have investigated specific issues related to athletics success, revenue generation, and graduation rates, no previous studies have attempted to evaluate these factors simultaneously. This chapter discusses the development of a data envelopment analysis (DEA) model aimed at measuring how efficient university athletic departments are in terms of the use of resources to achieve athletics success, generate revenue, and promote academic success and on-time graduation. Data from National Collegiate Athletic Association (NCAA) Division I Football Bowl Subdivision (FBS) universities are used to evaluate the relative efficiency of the institutions. The model identifies a series of “best-practice” universities which are used to calculate efficient target resource levels for inefficient institutions. The value of the proposed methodology to decision makers is discussed.
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Seong‐Jong Joo, Don Nixon and Philipp A. Stoeberl
Selecting appropriate variables for analytical studies is critical for the validity of analysis. It is the same with data envelopment analysis (DEA) studies. In this study, for…
Abstract
Purpose
Selecting appropriate variables for analytical studies is critical for the validity of analysis. It is the same with data envelopment analysis (DEA) studies. In this study, for benchmarking using DEA, the paper seeks to suggest a novel framework based on return on assets (ROA), which is popular and user‐friendly to managers, and demonstrate it by use of an example.
Design/methodology/approach
The paper demonstrates the selection of variables using the elements of ROA and applies DEA for measuring and benchmarking the comparative efficiency of companies in the same industry.
Findings
It is frequently impossible to obtain internal data for benchmarking from competitors in the same industry. In this case, annual reports may be the only source of data for publicly traded companies. The framework demonstrated with an example is a practical approach for benchmarking with limited data.
Research limitations/implications
This study employs financial data and is subject to the limitations of accounting practices.
Originality/value
The approach is applicable to various studies for performance measurement and benchmarking with minor modifications. Contributions of the study are twofold: first, a framework for selecting variables for DEA studies is suggested; second, the applicability of the framework with a real‐world example is demonstrated.
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Sangita Choudhury and Arpita Ghose
In contrast to the available literature which uses common frontier for efficiency measurement of Indian secondary education (ISE) with state level data, output-oriented technical…
Abstract
In contrast to the available literature which uses common frontier for efficiency measurement of Indian secondary education (ISE) with state level data, output-oriented technical efficiency (OUTTE) of Indian states and union territories (UT) is estimated to find whether maximum possible output of ISE given the resources are being generated, by creating two separate frontiers for (i) General Category States (GCS) and (ii) Special Category States (SCS) and UT, as two groups operate under different economic and fiscal conditions, for 2010–2011 to 2015–2016 under variable returns to scale and using non-parametric Data Envelopment Approach. Not all GCS and SCS&UT are perfectly technically efficient, implying GCS/SCS can increase output of ISE given the existing inputs. OUTTE of ISE varies within and between GCS/SCS. A second step determinant analysis suggests both for GCS and SCS, OUTTE is related positively to (i) percentage of girls to boy’s enrollment in ISE, supporting the positive role of gender equality in education regarding enrollment; and (ii) ratio of government education expenditure to aggregate government expenditure and negatively to poor infrastructural variables. OUTTE is also positively related to per capita net state domestic product at factor cost (constant prices), proportion of para-teachers for GCS and percentage of ST enrollment for SCS.