Abstract
Keywords
1. Introduction
Data Envelopment Analysis (DEA), which was introduced by [1] and expanded by [2], measures the performance of DMUs, and is recognized as a valuable decision support tool for managerial controls and organizational diagnosis.
The basic two models provide information of whether the DMU is efficient or inefficient, but not for discriminant or rank information among two or more efficient DMUs, as represented by θ = 1 (θ means efficiency score). The cause of this problem is the inappropriate assignment of optimal weight for input and output factors. In order to remedy the problem, researchers have explored ways such as weight restrictions [3], the Cross efficiency model [4, 5, 6, 7], and the Recursive Data Envelopment Analysis [8].
Most recently, [9] and [10] suggested a network-based method that uses reference sets of DEA results. They made many reference sets from DEA analysis with all possible combinations of input and output variables, and then constructed a social network that expresses the DMU as node and reference sets as link. By using Eigenvector centrality of SNA measures, they determined the rank of efficient DMUs. Their study made a great contribution towards discriminating efficient DMUs, but it has some weak points. The study may impair co-relationship between the input and output variables by combining all possible cases and may distort reference sets. The second is the usage of eigenvector centrality, which not only considers the connection strength, but node's influence. This may mean that the eigenvector centrality of efficient DMUs is lower than that of inefficient DMUs. In other words, inefficient DMUs, referring to many efficient DMUs, may have higher eigenvector centrality because they have more connections than those of efficient DMUs.
Therefore, this paper aims to propose a method to determine the influence and rank of efficient DMUs by using PageRank centrality for considering both connection strengths and the node's power of social network analysis measures. The social network of the study is a directed and valued network with reference sets and Lambda (Λ) values. PageRank centrality developed by [11] measures the influence of node by considering the neighbouring node's influence. The centrality was first used to measure the importance of web pages in web structure links through hyperlinks. Today, this is used extensively as the centrality measure of social network analysis.
The remainder of the paper is organized as follows. Based on a review of previous studies, the paper briefly reviews one basic model of the CCR and BCC, and the Eigenvector and PageRank centrality concept in the social network analysis in Section 2 and 3, respectively. Section 4 describes the research methodology and data collection. Section 5 builds and analyses reference sets network with 35 ports. Finally, the study concludes with discussions on the contributions and limitations of the network-based approach.
2. Data Envelopment Analysis (DEA)
Today, DEA is well known as a productivity analysis tool for assessing the performance on a homogeneous set of DMUs, which are described by their multiple input and output measures. The DEA model was first coined by Charnes, Cooper and Rhodes (CCR) model in 1978 and was expanded by Banker, Charnes, and Cooper (BCC) model in 1984. The two most widely used models deserve greater attention. The CCR model assumes constant returns to scale (CRS) so that all observed production combinations can be scaled up or down proportionally. The BCC model, on the other hand, allows for variable returns to scale (VRS) and is graphically represented by a piecewise linear convex frontier [12].
Formally, let input variables be
The dual problem of the CCR model above is described by:
The BCC model is described as:
3. Social Network Analysis (SNA)
In this paper, the reference sets network is abstracted as a connected network,
Social network analysis concentrates on the study of two sets of properties of networks: structural properties and relational properties. Relational properties focus on the contents and the form of the relationships between network members. Structural characteristics of networks are explored with respect to the level of granularity on the analysed objects: node-level, network-level, and group-level. Node-level measures analyse properties of individual nodes and edges, such as importance (centrality). Group-level measures determine specific subsets of nodes. These measures include the computation of densely connected groups (clustering) and the computation of structural roles and positions (block modelling or role assignment). Network-level measure is focused on global properties of the network, such as density, degree-distributions, transitivity, or reciprocity. This paper focuses on two types of node-level metrics—eigenvector and PageRank centrality. Two reasons exist as to why two types of centralities should be considered. First, the eigenvector centrality considers the number of neighbour nodes links. Second, PageRank centrality reflects the number of neighbour nodes links and the resulting impact.
3.1 Eigenvector Centrality
Where degree centrality gives a simple count on the number of connections a node has, the eigenvector centrality acknowledges that not all connections are equal. In general, connections to people who are themselves influential will influence a person more than connections to less influential counterparts. If we denote the centrality of node
where Λ is a constant. Having a large number of connections still counts for something, but a vertex with a smaller number of high-quality contacts may outrank one with a larger number of mediocre contacts. The eigenvector centrality turns out to be a revealing measure in many situations.
3.2 PageRank Centrality
This is based on (and essentially identical to) PageRank as computed by Google's original algorithm [11, 14]. It iteratively computes the influence of the entire network for each node over time. It can operate on either an individual daily graph, or on an average graph, constructed as a weighted composite of a few social networks. The original PageRank algorithm provides a ranking for the importance of web pages based on the link structure of the web created by the hyperlinks between the pages, by using the following model:
where

Example of PageRank Centrality
4. Research Method and Data Collection
The research method consists of three stages, as shown in Figure 2, to determine the influence and rank of efficient DMUs. The first stage is to select the input and output variables for analysing DEA, and then to collect the data for ports to measure efficiency. This study selects 35 ports in Asia and the Pacific area out of top 100 worldwide ports based on throughputs in 2010, and uses the number of berths, sea depth, and number of cranes as input variables and throughput as output variables. These variables that impact efficiency are mostly used in previous studies for measuring port productivity (see Table 1). The data of each port for input and output variables were collected in the Containerization International Yearbook in 2010.

Research Framework
Input and Output measures used in Previous Works
The second stage is to measure the efficiency of ports using DEA Excel Solver. This study uses an output-oriented BCC model. Efficiency scores, reference sets and Lambda values for each DMU are given results of DEA analysis.
The third stage is to build and analyse the social network by using reference sets and their lambda (Λ) value. Hereby, the paired dataset between DMUs and reference sets are organized by using Microsoft Excel 2007.
The social network is built and analysed with the paired data (edge list) using Netminer 4.0, which is the software used to compute the various measurements of social network analysis. In building the social network, the node is set to point to its referring DMUs as suggested by DEA. The corresponding lambda values for these referent DMUs are taken as the strength of the network link.
5. Analysis and Results
5.1 DEA Analysis
This study analyses the productivity of 35 ports selected in the previous section by using output-oriented BCC. The results, as shown in Table 2, indicate that the efficient ports are Shanghai, Hong Kong, Shenzhen, and Lianyungang, and all other ports are inefficient. Any with an efficient score of θ = 1 cannot be discriminated and ranked. In order to remedy the problem, one of the social network centralities, the PageRank centrality of equation (5), is used.
Reference (Ref.) sets and Lambda
5.2 Creation and Analysis of Social Network
The social network structure expresses the DMU as a node, reference sets as link, and lambda as connection strength or weight (called ‘reference sets network hereinafter). The size of the circle (stands for DMU) in Figure 3 indicates its influence as frequency when referenced by inefficient DMUs. The width of the line (link) indicates the size of the lambda value as connection strength. In reference sets network, the number of nodes and links are 35 and 96, respectively. The average degree (2.629) shows that the efficient DMUs refer to an average (2.60) of efficient DMUs as a benchmarking target.

Social Networks by Reference Sets
The circle sizes of four efficient DMUs are different to each other, as shown in Figure 3. Shenzhen and Lianyungang have the largest circles, and Shanghai and Hong Kong are smaller than Shenzhen and Lianyungang.
The reason for this is that Shanghai and Hong Kong are less referenced than Shenzhen and Lianyungang by inefficient DMUs. All inefficient DMUs are the same circle sizes because the sum of lambda in the reference sets is always ‘1’. PageRank centrality quantifies and ranks influential levels of efficient DMUs, as shown in Table 3.
Comparisons of PageRank and Eigenvector
Lianyungang port has the highest PageRank centrality (0.2896), which means that it was referenced more than any other efficient ports according to inefficient ports. The Lianyungang port is also the most influential when considering the neighbouring node's influence and the strength of the network link. Following this port, the Shenzhen port has the second highest PageRank centrality (0.2856). Shanghai port (0.1925) and Hong Kong port (0.0994) are in order. All inefficient ports have the same PageRank centrality (0.0043) because the sum of lambda for the reference sets is 1. Therefore, the efficient ports can be discriminated and ranked by PageRank centrality.
5.3 Results
Efficient ports with θ = 1 of 35 ports are Shenzhen, Lianyungang, Shanghai, and Hong Kong. PageRank centrality analysis shows that Lianyungang has the most powerful influence, followed by Shenzhen, Shanghai, and Hong Kong, respectively.
The rank order of efficient ports are the same as PageRank order, and the inefficient ports with same PageRank centrality are the same as the efficiency score order as shown in Table 4.
Rankings of all DMUs
Comparisons of this study's results with [9] are suggested in Table 3. According to their method on eigenvector centrality, Lianyungang port has the highest centrality, but the other three efficient ports have lower centrality than inefficient ports. The reason for this result is that the inefficient DMUs that refer to many efficient DMUs have more connections than those of efficient DMUs. The method provides rank information for efficient ports, but this is inappropriate because the rank of some efficient ports is lower than that of the inefficient ports.
However, the result of PageRank centrality with all possible combinations of input and output variables shows that four efficient ports have centrality values of the following order: Lianyungang Shanghai, Shenzhen, and Hong Kong. Therefore, PageRank centrality provides more realistic information than Eigenvector centrality.
6. Conclusions and Limitations
This paper suggests a method that provides ranking information for efficient DMUs by using social network analysis based on reference sets and their lambda. When constructing the network, the node is set to point to its referent DMUs as suggested by DEA. The corresponding lambda for these referent DMUs are considered the strengths of the network link. Thus, this social network is a network with direction and value. This study also provides the influence and rank of efficient DMUs by using PageRank centrality of network centrality metrics.
The result shows that Lianyungang port has the highest PageRank centrality (0.2896), which means that it was referenced much more than any other efficient ports according to inefficient ports. Following this port, Shenzhen port has the second highest PageRank centrality (0.2856). Shanghai port (0.1925) and Hong Kong port (0.0994) are in order. This paper, as compared with the method by [9], finds that PageRank centrality is more realistic than Eigenvector centrality when determining influences and ranks of efficient DMUs.
There are a few limitations to this study. In the case where most DMUs are efficient and some are not a reference to any other inefficient DMU, the DMUs in ‘reference sets network’ are isolated. The PageRank centrality for all DMUs remains the same, and thus does not provide discriminant or ranking information for them.
