One business research method that has been used to good effect by some companies is the data envelope analysis methodology developed by Charnes and his colleague (1978, cited in Marcoulides at p. 122). According to Marcoulides (1998), "This method is used to evaluate the relative efficiency of a set of decision-making units (DMUs)" (p. 122). The term "decision making unit" was coined by Charnes and his associates to describe a set of homogeneous units, each of which uses a common set of inputs to produce a common set of outputs as shown in Figure 2 below.

Figure 2. Graphical illustration of a set of DMUs each using a common set of inputs {1, 2,..., I} to produce a common set of outputs {1, 2,..., R}.

Source: Marcoulides, p. 123.

Some examples of decision-making units include the collection of similar firms, departments, or other organizational units and typical DMUs can be...
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