Data envelopment analysis (DEA) allows us to evaluate the relative efficiency of each of a set of decision-making units (DMUs). However, the methodology does not permit us to identify specific sources of inefficiency because DEA views the DMU as a “black box” that consumes a mix of inputs...

Effective organizations need capabilities relevant to their missions and must manage those capabilities efficiently. We anticipate capability is more important in industries in which labor is highly paid, while efficiency is more important in industries in which labor is inexpensive. We explore...