Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector

Guest editorial Ali Emrouznejad is a Senior Lecturer at the Aston Business School in Birmingham, UK. His areas of research interest include performance measurement and management, efficiency and productivity analysis as well as data mining. He has published widely in various international journals. He is an Associate Editor of IMA Journal of Management Mathematics and Guest Editor to several special issues of journals including Journal of Operational Research Society, Annals of Operations Research, Journal of Medical Systems, and International Journal of Energy Management Sector. He is in the editorial board of several international journals and co-founder of Performance Improvement Management Software. William Ho is a Senior Lecturer at the Aston University Business School. Before joining Aston in 2005, he had worked as a Research Associate in the Department of Industrial and Systems Engineering at the Hong Kong Polytechnic University. His research interests include supply chain management, production and operations management, and operations research. He has published extensively in various international journals like Computers & Operations Research, Engineering Applications of Artificial Intelligence, European Journal of Operational Research, Expert Systems with Applications, International Journal of Production Economics, International Journal of Production Research, Supply Chain Management: An International Journal, and so on. His first authored book was published in 2006. He is an Editorial Board member of the International Journal of Advanced Manufacturing Technology and an Associate Editor of the OR Insight Journal. Currently, he is a Scholar of the Advanced Institute of Management Research. Uses of frontier efficiency methodologies and multi-criteria decision making for performance measurement in the energy sector This special issue aims to focus on holistic, applied research on performance measurement in energy sector management and for publication of relevant applied research to bridge the gap between industry and academia. After a rigorous refereeing process, seven papers were included in this special issue. The volume opens with five data envelopment analysis (DEA)-based papers. Wu et al. apply the DEA-based Malmquist index to evaluate the changes in relative efficiency and the total factor productivity of coal-fired electricity generation of 30 Chinese administrative regions from 1999 to 2007. Factors considered in the model include fuel consumption, labor, capital, sulphur dioxide emissions, and electricity generated. The authors reveal that the east provinces were relatively and technically more efficient, whereas the west provinces had the highest growth rate in the period studied. Ioannis E. Tsolas applies the DEA approach to assess the performance of Greek fossil fuel-fired power stations taking undesirable outputs into consideration, such as carbon dioxide and sulphur dioxide emissions. In addition, the bootstrapping approach is deployed to address the uncertainty surrounding DEA point estimates, and provide bias-corrected estimations and confidence intervals for the point estimates. The author revealed from the sample that the non-lignite-fired stations are on an average more efficient than the lignite-fired stations. Maethee Mekaroonreung and Andrew L. Johnson compare the relative performance of three DEA-based measures, which estimate production frontiers and evaluate the relative efficiency of 113 US petroleum refineries while considering undesirable outputs. Three inputs (capital, energy consumption, and crude oil consumption), two desirable outputs (gasoline and distillate generation), and an undesirable output (toxic release) are considered in the DEA models. The authors discover that refineries in the Rocky Mountain region performed the best, and about 60 percent of oil refineries in the sample could improve their efficiencies further. H. Omrani, A. Azadeh, S. F. Ghaderi, and S. Abdollahzadeh presented an integrated approach, combining DEA, corrected ordinary least squares (COLS), and principal component analysis (PCA) methods, to calculate the relative efficiency scores of 26 Iranian electricity distribution units from 2003 to 2006. Specifically, both DEA and COLS are used to check three internal consistency conditions, whereas PCA is used to verify and validate the final ranking results of either DEA (consistency) or DEA-COLS (non-consistency). Three inputs (network length, transformer capacity, and number of employees) and two outputs (number of customers and total electricity sales) are considered in the model. Virendra Ajodhia applied three DEA-based models to evaluate the relative performance of 20 electricity distribution firms from the UK and the Netherlands. The first model is a traditional DEA model for analyzing cost-only efficiency. The second model includes (inverse) quality by modelling total customer minutes lost as an input data. The third model is based on the idea of using total social costs, including the firm’s private costs and the interruption costs incurred by consumers, as an input. Both energy-delivered and number of consumers are treated as the outputs in the models. After five DEA papers, Stelios Grafakos, Alexandros Flamos, Vlasis Oikonomou, and D. Zevgolis presented a multiple criteria analysis weighting approach to evaluate the energy and climate policy. The proposed approach is akin to the analytic hierarchy process, which consists of pairwise comparisons, consistency verification, and criteria prioritization. In the approach, stakeholders and experts in the energy policy field are incorporated in the evaluation process by providing an interactive mean with verbal, numerical, and visual representation of their preferences. A total of 14 evaluation criteria were considered and classified into four objectives, such as climate change mitigation, energy effectiveness, socioeconomic, and competitiveness and technology. Finally, Borge Hess applied the stochastic frontier analysis approach to analyze the impact of various business strategies, including acquisition, holding structures, and joint ventures, on a firm’s efficiency within a sample of 47 natural gas transmission pipelines in the USA from 1996 to 2005. The author finds that there were no significant changes in the firm’s efficiency by an acquisition, and there is a weak evidence for efficiency improvements caused by the new shareholder. Besides, the author discovers that parent companies appear not to influence a subsidiary’s efficiency positively. In addition, the analysis shows a negative impact of a joint venture on technical efficiency of the pipeline company. To conclude, we are grateful to all the authors for their contribution, and all the reviewers for their constructive comments, which made this special issue possible. We hope that this issue would contribute significantly to performance improvement of the energy sector.

Computer based approaches to managerial decision making:optimism, heuristics and simulation

DUE TO COPYRIGHT RESTRICTIONS ONLY AVAILABLE FOR CONSULTATION AT ASTON UNIVERSITY LIBRARY AND INFORMATION SERVICES WITH PRIOR ARRANGEMENT

Green supply chain performance measurement using fuzzy ANP-based balanced scorecard:a collaborative decision-making approach

The purpose of this paper is to delineate a green supply chain (GSC) performance measurement framework using an intra-organisational collaborative decision-making (CDM) approach. A fuzzy analytic network process (ANP)-based green-balanced scorecard (GrBSc) has been used within the CDM approach to assist in arriving at a consistent, accurate and timely data flow across all cross-functional areas of a business. A green causal relationship is established and linked to the fuzzy ANP approach. The causal relationship involves organisational commitment, eco-design, GSC process, social performance and sustainable performance constructs. Sub-constructs and sub-sub-constructs are also identified and linked to the causal relationship to form a network. The fuzzy ANP approach suitably handles the vagueness of the linguistics information of the CDM approach. The CDM approach is implemented in a UK-based carpet-manufacturing firm. The performance measurement approach, in addition to the traditional financial performance and accounting measures, aids in firms decision-making with regard to the overall organisational goals. The implemented approach assists the firm in identifying further requirements of the collaborative data across the supply-cain and information about customers and markets. Overall, the CDM-based GrBSc approach assists managers in deciding if the suppliers performances meet the industry and environment standards with effective human resource. © 2013 Taylor & Francis.

Classifying clinical decision making:a unifying approach

This is the first of two linked papers exploring decision making in nursing which integrate research evidence from different clinical and academic disciplines. Currently there are many decision-making theories, each with their own distinctive concepts and terminology, and there is a tendency for separate disciplines to view their own decision-making processes as unique. Identifying good nursing decisions and where improvements can be made is therefore problematic, and this can undermine clinical and organizational effectiveness, as well as nurses' professional status. Within the unifying framework of psychological classification, the overall aim of the two papers is to clarify and compare terms, concepts and processes identified in a diversity of decision-making theories, and to demonstrate their underlying similarities. It is argued that the range of explanations used across disciplines can usefully be re-conceptualized as classification behaviour. This paper explores problems arising from multiple theories of decision making being applied to separate clinical disciplines. Attention is given to detrimental effects on nursing practice within the context of multidisciplinary health-care organizations and the changing role of nurses. The different theories are outlined and difficulties in applying them to nursing decisions highlighted. An alternative approach based on a general model of classification is then presented in detail to introduce its terminology and the unifying framework for interpreting all types of decisions. The classification model is used to provide the context for relating alternative philosophical approaches and to define decision-making activities common to all clinical domains. This may benefit nurses by improving multidisciplinary collaboration and weakening clinical elitism.

The role of shared decision-making in audiologic rehabilitation

Shared decision-making (SDM), a component of patient-centered care, is the process in which the clinician and patient both participate in decision-making about treatment; information is shared between the parties and both agree with the decision. Shared decision-making is appropriate for health care conditions in which there is more than one evidence-based treatment or management option that have different benefits and risks. The patient's involvement ensures that the decisions regarding treatment are sensitive to the patient's values and preferences. Audiologic rehabilitation requires substantial behavior changes on the part of patients and includes benefits to their communication as well as compromises and potential risks. This article identifies the importance of shared decision-making in audiologic rehabilitation and the changes required to implement it effectively.

Decision-making in product quality based on failure knowledge

Decision-making in product quality is an indispensable stage in product development, in order to reduce product development risk. Based on the identification of the deficiencies of quality function deployment (QFD) and failure modes and effects analysis (FMEA), a novel decision-making method is presented that draws upon a knowledge network of failure scenarios. An ontological expression of failure scenarios is presented together with a framework of failure knowledge network (FKN). According to the roles of quality characteristics (QCs) in failure processing, QCs are set into three categories namely perceptible QCs, restrictive QCs, and controllable QCs, which present the monitor targets, control targets and improvement targets respectively for quality management. A mathematical model and algorithms based on the analytic network process (ANP) is introduced for calculating the priority of QCs with respect to different development scenarios. A case study is provided according to the proposed decision-making procedure based on FKN. This methodology is applied in the propeller design process to solve the problem of prioritising QCs. This paper provides a practical approach for decision-making in product quality. Copyright © 2011 Inderscience Enterprises Ltd.

Dynamic decision-making based on NFR for managing software variability and configuration selection

Due to dynamic variability, identifying the specific conditions under which non-functional requirements (NFRs) are satisfied may be only possible at runtime. Therefore, it is necessary to consider the dynamic treatment of relevant information during the requirements specifications. The associated data can be gathered by monitoring the execution of the application and its underlying environment to support reasoning about how the current application configuration is fulfilling the established requirements. This paper presents a dynamic decision-making infrastructure to support both NFRs representation and monitoring, and to reason about the degree of satisfaction of NFRs during runtime. The infrastructure is composed of: (i) an extended feature model aligned with a domain-specific language for representing NFRs to be monitored at runtime; (ii) a monitoring infrastructure to continuously assess NFRs at runtime; and (iii) a exible decision-making process to select the best available configuration based on the satisfaction degree of the NRFs. The evaluation of the approach has shown that it is able to choose application configurations that well fit user NFRs based on runtime information. The evaluation also revealed that the proposed infrastructure provided consistent indicators regarding the best application configurations that fit user NFRs. Finally, a benefit of our approach is that it allows us to quantify the level of satisfaction with respect to NFRs specification.

Menedzsmentképességek és döntéshozatali közelítésmódok longitudinális elemzése a versenyképesség-kutatások alapján (Longitudinal analysis of management capabilities and decision making approaches based on the competitiveness researches)

Számos korábbi kutatás – köztük a szerzők korábbi vizsgálatai is – azt mutatja, hogy a menedzsmentképességek és a vállalatok versenyképessége között pozitív kapcsolat áll fenn, a jobban teljesítő és a proaktívabb vállalatok rendre felkészültebb, jobb vezetői képességekkel bíró, kockázatvállalóbb vezetőkkel rendelkeznek. Az is megfigyelhető, hogy az ebből a nézőpontból sikeresebben működő vállalatok döntéseiben az átlagosnál is erősebben érvényesül a racionális közelítésmód, melynek alkalmazásával a menedzserek az optimális cselekvési alternatíva kiválasztására törekszenek. A cikkben a szerzők az elmúlt 15 év versenyképességi kutatásainak tapasztalatait összegzik, kiemelt hangsúlyt helyezve a legfrissebb felmérés eredményeire. ________________ The article summarizes the main findings of the Competitiveness Research Program with respect to the skills and capabilities of the Hungarian managers and the decision making approaches they use during their work. The results of the four surveys conducted in 1996, 1999, 2004 and 2009 are fairly stable over time: practice minded behavior, professional expertise, and problem solving skills are on the top of the list of the most developed skills of the Hungarian executives. The rational approach is the most popular among the most widespread decision making models in the authors’ sample which is rather alarming since the present turbulent economic environment may demand more adaptive and intuitive approaches.

Individual decision-making by top executives as a valuable resource for strategic management – A resource-based view and dynamic capability approach

Strategy is highly important for organisational success and the achievement of competitive advantage. Strategy is dynamic and it depends on accurate individual decision-making from medium and high-level managers and executives. Since managers always formulate strategy, its formulation depends mostly on their assertive decisions. Making good decisions is a complex task, even more in today’s business world where a large quantity of information and a dynamic environment forces people to decide without having complete information. As Shafir, Simonson, & Tversky (1993) point out, "the making of decisions, both big and small, is often difficult because of uncertainty and conflict". In this paper the author will explain a basic theoretical framework about top manager's individual decision-making, showing how complex the process of making high-impact decisions is; then, he will compare this theory with one of the most important streams in strategic management, the Resource-Based View (RBV) of the firm. Finally, within the context of individual decision-making and the RBV stream, the author will show how individual decision makers in top management positions constitute a valuable, rare, non-imitable and non-substitutable resource that provides sustained competitive advantage.

The National Institute of Justice guide for eyewitness identification evidence: Can it improve juror decision-making?

Mistaken eyewitness identifications of innocent lead to more false convictions in the United States than any other cause. In response to concerns about the reliability of eyewitness evidence, the National Institute of Justice (NIJ) in 1999 published a Guide for the gathering and preservation of eyewitness evidence by law enforcement personnel. Previous research has shown that eyewitness identifications are more accurate when obtained using procedures recommended in the NIJ Guide. This experiment assessed whether informing jurors about the Guide can improve their ability to discriminate between eyewitness identifications likely to be accurate and those likely to be inaccurate and, if so, how to most effectively provide jurors with such information. ^ Seven hundred sixteen U.S. citizens who reported for criminal jury duty participated. Half of the participant jurors read a summary of an armed robbery trial in which the police followed the NIJ Guide when obtaining an eyewitness identification of the defendant. The other half read about an identical case in which the police did not follow the Guide. Jurors received information about the Guide from a court-appointed expert witness, one of the attorneys in the case, the trial judge, the judge in combination with one of the attorneys, or from no one (in the control groups). Jurors then rendered a verdict in the case and answered questions about the evidence in the case. ^ When an expert witness or the judge (either alone or in combination with one of the attorneys) informed jurors about the Guide, the jurors voted to convict defendants likely to be guilty and to acquit defendants likely to be innocent more often than did uninformed jurors assigned to a control group. These data suggest that informing jurors about the NIJ Guide using expert testimony or instructions from a judge will improve the quality and accuracy of jurors' verdict decisions in cases involving eyewitness identification evidence. However, more research is needed to determine whether the judge will remain an effective source of information about the Guide in a longer, more detailed trial scenario and to learn more about the underlying psychological processes governing the effects observed in this experiment. ^

Jury decision making and the Story Model: How do deliberation style and evidence order influence the story that juries create?

This study investigated the utility of the Story Model for decision making at the jury level by examining the influence of evidence order and deliberation style on story consistency and guilt. Participants were shown a video-taped trial stimulus and then provided case perceptions including a guilt judgment and a narrative about what occurred during the incident. Participants then deliberated for approximately thirty minutes using either an evidence-driven or verdict-driven deliberation style before again providing case perceptions, including a guilt determination, a narrative about what happened during the incident, and an evidence recognition test. Multi-level regression analyses revealed that evidence order, deliberation style and sample interacted to influence both story consistency measures and guilt. Among students, participants in the verdict-driven deliberation condition formed more consistent pro-prosecution stories when the prosecution presented their case in story-order, while participants in the evidence-driven deliberation condition formed more consistent pro-prosecution stories when the defense's case was presented in story-order. Findings were the opposite among community members, with participants in the verdict-driven deliberation condition forming more consistent pro-prosecution stories when the defense's case was presented in story-order, and participants in the evidence-driven deliberation condition forming more consistent pro-prosecution stories when the prosecution's case was presented in story-order. Additionally several story consistency measures influenced guilt decisions. Thus there is some support for the hypothesis that story consistency mediates the influence of evidence order and deliberation style on guilt decisions.

A Multi-Criteria Decision-Making Approach to Compare and Contrast the Websites of China-based and U.S-based Hotels

The improvement in living standards and the development of telecommunications have led to a large increase in the number of Internet users in China. It has been reported by China National Network Information Center that the number of Internet users in China has reached 33.7 million in 2001, ranting the country third in the world. This figure also shows that more and more Chinese residents have accepted the Internet and use it to obtain information and compete their travel planning. Milne and Ateljevic stated that the integration of computing and telecommunications would create a global information network based mostly on the Internet. The Internet, especially the World Wide Web, has had a great impact on the hospitality and tourism industry in recent years. The WWW plays an important role in mediating between customers and hotel companies as a place to acquire information acquisition and transact business.

Deprofessionalization of curriculum decision -making

The purpose of this study was to analyze the evolution of Florida state level policy efforts and to assess the responding educational policy development and implementation at the local school district level. The focus of this study was the secondary language arts curriculum in Miami-Dade County Public Schools. ^ Data was collected using document analysis as a source of meaning making out of the language sets proffered by agencies at each level. A matrix was created based on Klein's levels of curriculum decision-making and Functional Process Theory categories of policy formation. The matrix allowed the researcher to code and classify specific information in terms accountability/high-stakes testing; authority; outside influences; and operational/structural organization. ^ Federal policy documents provided a background and impetus for much of what originated at the State level. The State then produced policy directives which were accepted by the District and specific policy directives and guidelines for practice. No evidence was found indicating the involvement of any other agencies in the development, transmission or implementation of the State level initiated policies. ^ After analyzing the evolutionary process, it became clear that state policy directives were never challenged or discussed. Rather, they were accepted as standards to be met and as such, school districts complied. Policy implementation is shown to be a top-down phenomenon. No evidence was found indicating a dialogue between state and local systems, rather the state, as the source of authority, issued specifically worded policy directives and the district complied. Finally, this study recognizes that outside influences play an important role in shaping the education reform policy in the state of Florida. The federal government, through NCLB and other initiatives created a climate which led almost naturally to the creation of the Florida A+ Plan. Similarly, the concern of the business community, always interested in the production of competent workers, continued to support efforts at raising the minimum skill level of Florida high school graduates. ^ Suggestions are made for future research including the examination of local school sites in order to assess the overall nature of the school experience rather than rely upon performance indicators mandated by state policy. ^

Twelve certain men: The impact of emotional appraisals on juror decision-making

Our jury system is predicated upon the expectation that jurors engage in systematic processing when considering evidence and making decisions. They are instructed to interpret facts and apply the appropriate law in a fair, dispassionate manner, free of all bias, including that of emotion. However, emotions containing an element of certainty (e.g., anger and happiness, which require little cognitive effort in determining their source) can often lead people to engage in superficial, heuristic-based processing. Compare this to uncertain emotions (e.g., hope and fear, which require people to seek out explanations for their emotional arousal), which instead has the potential to lead them to engage in deeper, more systematic processing. The purpose of the current research is in part to confirm past research (Tiedens & Linton, 2001; Semmler & Brewer, 2002) that uncertain emotions (like fear) can influence decision-making towards a more systematic style of processing, whereas more certain emotional states (like anger) will lead to a more heuristic style of processing. Studies One, Two, and Three build upon this prior research with the goal of improving methodological rigor through the use of film clips to reliably induce emotions, with awareness of testimonial details serving as measures of processing style. The ultimate objective of the current research was to explore this effect in Study Four by inducing either fear, anger, or neutral emotion in mock jurors, half of whom then followed along with a trial transcript featuring eight testimonial inconsistencies, while the other participants followed along with an error-free version of the same transcript. Overall rates of detection for these inconsistencies was expected to be higher for the uncertain/fearful participants due to their more effortful processing compared to certain/angry participants. These expectations were not fulfilled, with significant main effects only for the transcript version (with or without inconsistencies) on overall inconsistency detection rates. There are a number of plausible explanations for these results, so further investigation is needed.

Deprofessionalization of curriculum decision-making

The purpose of this study was to analyze the evolution of Florida state level policy efforts and to assess the responding educational policy development and implementation at the local school district level. The focus of this study was the secondary language arts curriculum in Miami-Dade County Public Schools. Data was collected using document analysis as a source of meaning making out of the language sets proffered by agencies at each level. A matrix was created based on Klein's levels of curriculum decision-making and Functional Process Theory categories of policy formation. The matrix allowed the researcher to code and classify specific information in terms accountability/high-stakes testing; authority; outside influences; and operational/structural organization. Federal policy documents provided a background and impetus for much of what originated at the State level. The State then produced policy directives which were accepted by the District and specific policy directives and guidelines for practice. No evidence was found indicating the involvement of any other agencies in the development, transmission or implementation of the State level initiated policies. After analyzing the evolutionary process, it became clear that state policy directives were never challenged or discussed. Rather, they were accepted as standards to be met and as such, school districts complied. Policy implementation is shown to be a top-down phenomenon. No evidence was found indicating a dialogue between state and local systems, rather the state, as the source of authority, issued specifically worded policy directives and the district complied. Finally, this study recognizes that outside influences play an important role in shaping the education reform policy in the state of Florida. The federal government, through NCLB and other initiatives created a climate which led almost naturally to the creation of the Florida A+ Plan. Similarly, the concern of the business community, always interested in the production of competent workers, continued to support efforts at raising the minimum skill level of Florida high school graduates. Suggestions are made for future research including the examination of local school sites in order to assess the overall nature of the school experience rather than rely upon performance indicators mandated by state policy.