Application of PCA and DEA to recognize the true expertise of a firm: a case with primary schools

Purpose – The purpose of this paper is to identify important dimensions which are essential to remain competitive. To generate scores which will be as effective as the original outputs to determine the radial efficiency scores etc. Design/methodology/approach – A non-central principal component analysis (PCA) were used to determine various dimensions for each output. The objective was set to identify those special schools which could minimize certain pre-prescribed scores. Findings – Few schools were trying to concentrate on the students from the rich society and spending less per student. There were other schools which targeted to minimize the social loss by providing education to the poorer section and were funding more for them. Research limitations/implications – Small group was considered. However, the number can be extended. Practical implications – The valuable findings of Hillman and Jenkner (2002), stated that – “Children are entitled to a free, quality basic education. Many children who do attend school receive an inadequate education because of poorly trained, underpaid teachers, overcrowded classrooms, and a lack of basic teaching tools such as textbooks, blackboards, and pens and paper […].” “In an ideal world, primary education would be universal and publicly financed, and all children would be able to attend school regardless of their parents’ ability or willingness to pay. The reason is simple: when any child fails to acquire the basic skills needed to function as a productive, responsible member of society, […] The cost of educating children is far outweighed by the cost of not educating them. Adults who lack basic skills have greater difficulty in finding well-paying jobs and escaping poverty […].” In order to understand which fact has been stressed more the proposed model is very useful. Social implications – It is capable of describing the current standpoint of a group of homogenous schools or firms. Quality and cost cutting principals can be isolated quite easily. Originality/value – Introduces concepts of non-central PCA. Provides alternative scores which are as important as the original output. Detects and analyze various important dimensions.