Hu, X and Liu, C (2018) Measuring efficiency, effectiveness and overall performance in the Chinese construction industry. Engineering, Construction and Architectural Management, 25(6), pp. 780-797. ISSN 0969-9988
Abstract
Purpose: The purpose of this paper is to develop a simultaneous measurement of overall performance and its two dimensions of efficiency and effectiveness in the case of Chinese construction industry. Design/methodology/approach: A relational two-stage data envelopment analysis (DEA) method, which builds a relationship between component stages and can effectively identify inefficient stages, is developed and applied in order to measure overall performance, efficiency and effectiveness. Findings: The construction industry of the Eastern region in China demonstrated the best results for overall performance, efficiency and effectiveness. The gaps between regions were primarily reflected in differences of pure technical efficiency. Performance indicators in the whole construction industry improved steadily and but could be improved more effectively. The coefficients of variation became smaller and more well-balanced across the whole industry. Practical implications: Improving overall performance should focus on promoting construction efficiency at the project level and increasing management effectiveness at the company level. Sustainable development policies, which may include large investment and preferential policies, can narrow performance differences among the regions' construction industries, and ultimately promote overall performance for the whole industry. Originality/value: The relational two-stage DEA model is further developed in a variable returns-to-scale condition. The developed approach is generic and can provide a pathway for simultaneously measuring performance, efficiency and effectiveness and to recognise competitive advantages for promoting sustainable development.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | China; construction industry; effectiveness; efficiency; overall performance; relational two-stage data envelopment analysis |
| Index terms: | competitive advantage, efficiency, effectiveness, dimension, data envelopment analysis, construction industry, management effectiveness, performance indicator, sustainable development, variation, methodology, China |
| Subjects: | data analysis and analytics, health monitoring assessment and metrics, market analysis, industry analysis, performance measurement, performance management, research methods, Geography, health safety and environment, contractual condition |
| Topics: | Research Practice, Geographical Context, Health and Safety, Quality Management, Contract Administration |
| 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