Horta, I M; Camanho, A S and Da Costa, J M (2010) Performance assessment of construction companies integrating key performance indicators and data envelopment analysis. Journal of Construction Engineering and Management, 136(5), pp. 581-594. ISSN 0733-9364
Abstract
The web benchmarking systems broadly used in the construction industry (CI) are designed to provide results based on key performance indicators (KPIs). No insights concerning organization overall performance and improvements targets are available. This research aims to fulfill this gap using data envelopment analysis (DEA) as a method to complement the information provided by a set of KPIs. The methodology proposed is useful to all organizations involved in benchmarking routines. To enable a more realistic assessment of CI companies, two types of DEA models were used, one allows factor weights to vary freely and the other includes weight restrictions. These models assign an efficiency score to each organization, identifying efficient organizations and providing performance improvements targets for the others. To enable suggesting targets for all organizations, expert opinion was used to specify virtual units which were included in the efficiency assessment to define a practical frontier located beyond the productivity levels of the original DEA frontier. Based on a sample of 20 Portuguese leading contractors, the Portuguese web benchmarking system for CI, icBench, was used to demonstrate the advantages of integrating the DEA method with KPIs benchmark scores.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction companies; data analysis; data envelopment analysis; key performance indicators; performance characteristics |
| Index terms: | construction company, data analysis, routine, benchmarking, methodology, productivity, key performance indicator, efficiency, performance assessment, construction industry, data envelopment analysis, performance improvement |
| Subjects: | research methods, performance management, management, performance measurement, industry analysis, assessment methods, sociology, organization, project delivery, data analysis and analytics |
| Topics: | Human Resources, Quality Management, Organizational Design, Project Management, Research Practice, Business Strategy |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here