Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/20520
Title: Internal resource waste and centralization degree in two-stage systems: An efficiency analysis
Authors: An, Q
Yan, H 
Wu, J
Liang, L
Keywords: Centralization degree
Data envelopment analysis
Internal resource waste
Two-stage structure
Issue Date: 2015
Publisher: Pergamon Press
Source: Omega, 2015 How to cite?
Journal: Omega 
Abstract: Internal resource waste refers to the waste in the intermediate resources between the upstream stage and downstream stage in a production or service system. This study examines a system with a two-stage structure, in which the outputs from the first stage are taken as the inputs for the second stage. Two-stage systems can exist in centralized, decentralized, or mixed organizational modes. In this paper, we propose two-stage DEA models considering a degree of centralization that makes it possible to measure internal resource waste in different system modes. Some managerial insights are tested and verified from the perspective of efficiency analysis. We find that: 1) when there is only one intermediate measure in a centralized two-stage system, internal resource waste can be eliminated completely, and 2) a higher degree of centralization in a two-stage system can lead to less internal resource waste and more expected outputs. Finally, we present a numerical example and two practical real-world examples that illustrate our approach and findings.
URI: http://hdl.handle.net/10397/20520
ISSN: 0305-0483
EISSN: 1873-5274
DOI: 10.1016/j.omega.2015.07.009
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