Read-Rodríguez, Gabriel E.

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A comparison of DEA models that consider the operating environment of a non-profit organization
(2011) Read-Rodríguez, Gabriel E.; Medina-Borja, Alexandra; College of Engineering; Cesaní, Viviana; Cabrera, Mauricio; Department of Industrial Engineering; Ruiz-Vargas, Yolanda
Measuring and demonstrating results has become a question of survivability for many nonprofit organizations. Data Envelopment Analysis (DEA) is one of the analytical tools that can be used for benchmarking and target setting among a set of similar operating units. Several scholars have studied how to best consider these non-discretionary variables in DEA by making modifications to the original formulation. Recent studies have analyzed and compared these models using simulated data and a small amount of decision making units (DMUs). The aim of our study is to analyze, compare and evaluate different models in the literature that incorporate the environment and their suitability for peer discrimination and target setting in nonprofit environments. We achieve this by using real data from a large social service organization with 937 DMUs all over the United States and territories. The Ruggiero 1998 model presents the best discriminatory power followed by the Medina-Borja 2002 model.