Development and Application of Malmquist Productivity Analysis System to Handle Negative Values
Man Hee Park · Journal of Korea Service Management Society · 2023
The Malmquist productivity index, a non-parametric productivity analysis technique, is used for productivity analysis in various fields. When the variables considered as input and output variables in the DEA (Data Envelopment Analysis) model have negative values, there is a case where the solution of the DEA model does not exist, and for this reason, the existing methodology has a problem that the Malmquist productivity index cannot be calculated. In order to solve this problem, this study presented a Biennial Malmquist productivity analysis method that can process negative values and developed a system that can support it. The results of this study are summarized as follows. First, the Biennial Malmquist productivity index, which can analyze negative values in input and output variables, is presented, and the productivity index is subdivided into technological efficiency change index and technological change index. Second, an empirical analysis was conducted using performance data from public corporations for five years from 2007 to 2021 to prove the applicability of the Biennial Malmquist productivity index presented in this study. Third, a web-based productivity analysis system was developed to support the analysis of the Biennial Malmquist productivity index proposed in this study.