Measuring the technical efficiency is made by comparing the DMU performance with a hypothetical unit constructed as a weighted average of other observed firms. Based on Farrell's seminal work on the measurement of productive efficiency, the problem of measuring the technical efficiency of Decision Making Units (DMUs) became a matter of how far production is expanded without using additional resources. The so-called Data Envelopment Analysis (DEA) was different from statistical procedures comparing measures of performance based on an average observation. Since the introduction of the CCR model by professors Abraham Charnes, William Cooper and Edwardo Rhodes in 1978, the way scholars investigate the efficiency and productivity of organizations shifted drastically.
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