New non-radial models for merger and acquisition to achieve strong efficiency and MPSS without changing in the efficient frontier

Document Type : Research Article

Authors

1 shiraz university of technology

2 Department of OR, Faculty of Mathematics, Shiraz University of Technology, Shiraz, Iran

10.22124/jmm.2025.30974.2781

Abstract

In this study‎, ‎new models for the merger of two or more inefficient units are presented‎. ‎The discussed mergers in this study are horizontal and acquisition mergers‎. ‎In the presented models‎, ‎unlike the previously presented models‎, ‎the mergers are done non-radially; indeed‎, ‎managers can manage each of the indicators separately in the presented new merger process‎. ‎In this regard‎, efficient frontier of the production possibilities set does not change‎, ‎and merger of several units does not affect the efficiency score of other decision-making units‎. ‎Also‎, ‎by merging via the new models one can obtain a strong efficient unit with the most productive scale size‎. ‎The presented models are applied to the horizontal and acquisition merger of Iranian banks.

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