Strategic Alliances and Partnerships Processes in a Two-Stage Network DEA Framework under Variable Returns to Scale

Authors

  • javad gerami Department of mathematics, Shiraz Branch, Islamic Azad University, Shiraz, Iran.
  • Nematollah Naderizadeh Department of Industrial Engineering, Na.C., Islamic Azad University, Najafabad, Iran.
  • Mohammad Reza Mozaffari Department of Mathematics, Shi.C., Islamic Azad University, Shiraz, Iran.
  • Atefeh Amindoust Department of Industrial Engineering, Na.C., Islamic Azad University, Najafabad, Iran.
  • Mohammad Reza Feylizadeh Department of Industrial Engineering, Shi.C., Islamic Azad University, Shiraz, Iran

Abstract

In this paper, in today’s competitive environment, strategic partnerships and alliances among decision-making units (DMUs) have emerged as effective mechanisms for achieving resource savings, cost reduction, and performance improvement. This paper proposes a novel framework for modeling strategic partnership and alliance processes within a two-stage network Data Envelopment Analysis (DEA) structure under Variable Returns to Scale (VRS). In the proposed approach, two partnering DMUs are allowed to mutually utilize each other’s excess resources, enabling them to improve their performance and move toward their target efficiency levels. A distinctive feature of the model is its ability to determine the new input levels allocated from the partner units within the alliance process, while preserving the internal two-stage network structure of each DMU. The model is formulated in a multiplier form, which provides valuable insights into the contribution of each stage of the network to the overall efficiency improvement resulting from the strategic alliance. To demonstrate the applicability and effectiveness of the proposed framework, it is applied to a set of cement manufacturing plants located in the southern region of the country. The empirical results indicate that strategic alliances can significantly reduce resource consumption, enhance stage-wise and overall efficiency, and improve operational performance of the participating DMUs. The proposed model offers a practical decision-support tool for managers and policymakers seeking to design, evaluate, and implement effective strategic partnerships in network production systems.

Published

2026-08-08

Issue

Vol. 20

Section

Vol. 20, No. 5, (2026)

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