Performance Assessment of Two-stage Network Structures in the Presence of Contextual Variables

This research aims to evaluate the efficiency of a two-stage network structure by examining the impact of contextual variables on its performance. To accomplish this, a two-stage approach is implemented, which involves network data envelopment analysis (NDEA) in the first step and ordinary least squares (OLS) analysis in the second step. In the first step, a non-cooperative (Leader-Follower) model is employed to assess the efficiency of each sub-section within the two-stage process based on their inputs and outputs. In the second step, the logarithm of the estimated efficiency scores is regressed on the contextual variables to refine the network-specific efficiency. The performance of various Spanish airports is analyzed to demonstrate the effectiveness of this approach.