Measuring the Efficiency of Indian Business Schools: An Application of DEA/Hierarchical DEA

Abstract: This paper aims to evaluate the teaching and research efficiency of Indian business schools. Further, the objective of this study is to understand how “establishment period” and “geographical location” impact the overall efficiency of the business schools. In this study, eight variables have been considered to measure the teaching and research efficiency of Indian business schools using Data Envelopment Analysis (DEA). Additionally, Bilateral DEA and Hierarchical Data Envelopment Analysis (HDEA) methodology have been used to see the impact of the establishment period and geographical locations on the overall efficiency of those business schools. Results indicate a significant difference in the teaching and research efficiency of Indian business schools. However, results from the bilateral and Hierarchical DEA model suggest that the business schools established between 1990 and 2000 are more efficient. The findings of this study can be beneficial for policymakers in the decision-making process during the allocation of various resources/incentives. Keywords: DEA, Business Schools, Higher Education, Performance Evaluation, Hierarchical DEA