A modified Semi-Oriented Radial Measure for target setting with negative data

• We develop a modified SORM model in dealing with negative data.
• The modified SORM model can deal with input/output variables with both positive and negative values.
• The modified SORM model is always feasible and bounded.
• The modified SORM overcomes issues of target settings in the SORM.

Over the last few years Data Envelopment Analysis (DEA) has been gaining increasing popularity as a tool for measuring efficiency and productivity of Decision Making Units (DMUs). Conventional DEA models assume non-negative inputs and outputs. However, in many real applications, some inputs and/or outputs can take negative values. Recently, Emrouznejad et al. [6] introduced a Semi-Oriented Radial Measure (SORM) for modelling DEA with negative data. This paper points out some issues in target setting with SORM models and introduces a modified SORM approach. An empirical study in bank sector demonstrates the applicability of the proposed model.