Hu, X and Liu, C (2016) Profitability performance assessment in the Australian construction industry: A global relational two-stage DEA method. Construction Management and Economics, 34(3), pp. 147-159. ISSN 01446193
Abstract
Effective performance measurement drives performance and supports the development of construction. Only minimal literature measuring construction performance, efficiency and effectiveness simultaneously can be identified. A global relational two-stage data envelopment analysis (DEA) method is here proposed in order to produce effective and informative performance results. A relational two-stage DEA method systematically measures overall efficiency for a whole construction system and also yields scores for the individual stages of construction. The DEA results can be directly compared through global benchmark technology. The Australian construction industry is employed in order to implement the new method, in which profitability performance as a vital indicator of business survival, and its two dimensions of efficiency and effectiveness, are measured. The construction profitability performance and efficiency measures obtained provide evidence of underperformance and a slight imbalance in Australia between 1991 and 2012, while the measures obtained for the effectiveness factor indicate better achievement. The approach here developed promotes progress in modelling two-stage performance measurement and it can be replicated worldwide by construction projects, organizations or industries in order to quantify their performance, identify internal inefficiency components and recognize competitive advantages for promoting sustainable development.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Australia; data envelopment analysis; global benchmark technology; profitability performance |
| Index terms: | sustainable development, global benchmark technology, construction project, evidence, construction system, efficiency, competitive advantage, performance measurement, construction performance, Australia, effectiveness, construction industry, modelling, data envelopment analysis, dimension, survival, profitability performance |
| Subjects: | performance measurement, performance management, production management, health safety and environment, Geography, market analysis, building construction, industry analysis, evaluation and assessment methods, performance assessment, environmental science, data analysis and analytics, analytical methods, economic analysis, health monitoring assessment and metrics |
| Topics: | Health and Safety, Business Strategy, Engineering Principles, Research Practice, Geographical Context, Project Management, Sustainability, Quality Management, Site Management |
| 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