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 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 anternative 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.