Applying quality‐driven, efficiency‐adjusted DEA (QE‐DEA) in the pursuit of high‐efficiency–high‐quality service units: an input‐oriented approach

The data envelopment analysis (DEA) is used extensively for estimating the comparative efficiency of operational units that employ similar production processes. Efficiency optimization, however, is not adequate by itself to ensure the successful operation of an enterprise because it is related only to the internal production process of a business unit. Therefore, the unit, to be able to achieve its goals, should take into consideration external factors, such as customer satisfaction, which reflect the quality of the services provided. In this context, the current paper strongly supports the view that synchronous assessment of both efficiency and quality is necessary. Using the quality‐adjusted DEA model of Sherman & Zhu (2006), we develop a quality‐driven, efficiency‐adjusted DEA model (QE‐DEA) which seeks to provide a road map for a high‐quality and high‐efficiency operation of every service unit of the sample.