Measuring group performance based on metafrontier

Abstract

Afsharian et al. proposed a metafrontier-based group performance evaluation model under centralised management scenario. Their model is a mixed integer linear programming model under constant returns to scale. Their model suffers from infeasibility when variable returns to scale is assumed. We convert their model into an equivalent linear programming model under constant returns to scale. We extend the linear programming model to variable returns to scale and resolve the infeasibility. Models for centralised and decentralised scenarios are proposed in current paper. An example of a maritime carrier is introduced to demonstrate how the models proposed can be used to investigate the influence of the decision on joining maritime alliance on the performance of a carrier. Another example of solar industry is introduced to illustrate the application of the decentralised model in measuring the technology gap ratio.