A Coherent Methodology for Productivity Analysis Employing Integrated Partial Efficiency

• An activity decomposition methodology with theoretical foundation in the principles of activity control and stated focus of interest in the enterprise value-chain is presented. Characteristics of inputs and outputs are discussed, where a set of non-transformable inputs are defined and motivated. An integrated partial efficiency measure is formulated, compensating for some weaknesses of the Debreu-Farrell technical efficiency concept. Providing a coherent basis for productivity analysis, the IPE approach poses an alternative to e.g. DEA especially in the case of multi-level systems and sparse data. The method is easily communicable in terms of measurement and analysis, and may be extended to complement economic performance assessments and benchmarks.

Keyword

Activity analysis

Production modelling

Productivity analysis

Economic evaluation

Publication and Content Type

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art (subject category)