Knowledge Discovery Process and Methods to Enhance Organizational Performance

Determining Sources of Relative Inefciency ◾ 225

At this point, we need to determine a role of scale heterogeneity in the disparity

of the levels of the relative eciencies of the Leaders and the Followers. In order to

do so, we conduct DEA again, this time using the dataset consisting of the original

inputs and the outputs of the Followers, and the original inputs and the simulated

outputs of the Leaders. Once the scores of the relative eciency have been obtained,

we group them according to the cluster membership (i.e., Followers and Leaders)

and average the relative eciency scores for each group. If, after the comparison

of the averaged relative eciencies, the Leaders still have a higher averaged relative

eciency score, then we have ...