Measuring Relative Efficiency of Korean Construction Company using DEA/Window
Sub-prime mortgage crisis which began in the US is
regarded as the most economic crisis since the Great Depression in the
early 20th century. Especially, hidden problems on efficient operation
of a business were disclosed at a time and many financial institutions
went bankrupt and filed for court receivership. The collapses of
physical market lead to bankruptcy of manufacturing and construction
businesses. This study is to analyze dynamic efficiency of construction
businesses during the five years at the turn of the global financial
crisis. By discovering the trend and stability of efficiency of a
construction business, this study-s objective is to improve
management efficiency of a construction business in the
ever-changing construction market. Variables were selected by
analyzing corporate information on top 20 construction businesses in
Korea and analyzed for static efficiency in 2008 and dynamic
efficiency between 2006 and 2010. Unlike other studies, this study
succeeded in deducing efficiency trend and stability of a construction
business for five years by using the DEA/Window model. Using the
analysis result, efficient and inefficient companies could be figured
out. In addition, relative efficiency among DMU was measured by
comparing the relationship between input and output variables of
construction businesses. This study can be used as a literature to
improve management efficiency for companies with low efficiency
based on efficiency analysis of construction businesses.
[1] H. S. Jang, B. N. Lee, B. S. Gu, Internal Capability Evaluation of Leading
Construction Companies for Expanding the Overseas Construction
Market, Construction Economy Research Institute of Korea, 2007.
[2] Kocoinfo, www.kocoinfo.com.
[3] M. H. Park, Efficiency and Productivity Analysis, Korean Studies
Information Co. Ltd, 2008.
[4] I. S. Kim, Y. W. Nam, The Management Efficiency Analysis of
Construction Companies using Data Envelopment Analysis, Korea Real
Estate Academy, 2010.
[5] H. R. Lee, M. K. Moon, S. K. Kim, K. H. Kim, J. J. Kim, A Correlation
Analysis between the Capability of Construction Firms and Efficiency of
Construction Company Using DEA, Architectural Institute of Korea, vol.
26, num. 5, pp. 125-132, 2010.
[6] J. K. Kim, D. Y. Kang, Measuring Efficiency of Korean Apartment
Construction Firms using DEA, The Korea Contents Association, vol. 8,
num. 7, pp. 201-207, 2008.
[7] S. Mehrabian, M. Alirezaee, G. Jahanshahloo, "A complete efficiency
ranking of decision making units in data envelopment analysis,"
Computational optimization and applications, vol. 14, num. 2, pp.
261-266, 1999.
[8] S. T. Song, Comparative Analysis of Management Efficiency of
Domestic Banks, Korea Development Institute, 1993.
[9] R. D. Banker, A. Charnes, W. W. Cooper, Some models for estimating
technical and scale inefficiencies in data envelopment analysis,
Management science, vol. 30, num. 9, pp. 1078-1092, 1984.
[10] S. M. Lim, A Method for Selection of Input-Output Factors in DEA,
Korean Instritute of Industrial Engineers, vol. 22, num. 1, pp. 44-55,
2009.
[11] G. S. Kim, Analyzing the Technical Efficiency of Korean Engineering
and Construction Firms after the Financial Crisis, Korea Institue of
Construction Engineering and Management, vol. 6, num. 1, pp. 151-161,
2005.
[1] H. S. Jang, B. N. Lee, B. S. Gu, Internal Capability Evaluation of Leading
Construction Companies for Expanding the Overseas Construction
Market, Construction Economy Research Institute of Korea, 2007.
[2] Kocoinfo, www.kocoinfo.com.
[3] M. H. Park, Efficiency and Productivity Analysis, Korean Studies
Information Co. Ltd, 2008.
[4] I. S. Kim, Y. W. Nam, The Management Efficiency Analysis of
Construction Companies using Data Envelopment Analysis, Korea Real
Estate Academy, 2010.
[5] H. R. Lee, M. K. Moon, S. K. Kim, K. H. Kim, J. J. Kim, A Correlation
Analysis between the Capability of Construction Firms and Efficiency of
Construction Company Using DEA, Architectural Institute of Korea, vol.
26, num. 5, pp. 125-132, 2010.
[6] J. K. Kim, D. Y. Kang, Measuring Efficiency of Korean Apartment
Construction Firms using DEA, The Korea Contents Association, vol. 8,
num. 7, pp. 201-207, 2008.
[7] S. Mehrabian, M. Alirezaee, G. Jahanshahloo, "A complete efficiency
ranking of decision making units in data envelopment analysis,"
Computational optimization and applications, vol. 14, num. 2, pp.
261-266, 1999.
[8] S. T. Song, Comparative Analysis of Management Efficiency of
Domestic Banks, Korea Development Institute, 1993.
[9] R. D. Banker, A. Charnes, W. W. Cooper, Some models for estimating
technical and scale inefficiencies in data envelopment analysis,
Management science, vol. 30, num. 9, pp. 1078-1092, 1984.
[10] S. M. Lim, A Method for Selection of Input-Output Factors in DEA,
Korean Instritute of Industrial Engineers, vol. 22, num. 1, pp. 44-55,
2009.
[11] G. S. Kim, Analyzing the Technical Efficiency of Korean Engineering
and Construction Firms after the Financial Crisis, Korea Institue of
Construction Engineering and Management, vol. 6, num. 1, pp. 151-161,
2005.
@article{"International Journal of Architectural, Civil and Construction Sciences:56102", author = "Jung-Lo Park and Sung-Sik Kim and Sun-Young Choi and Ju-Hyung Kim and Jae-Jun Kim", title = "Measuring Relative Efficiency of Korean Construction Company using DEA/Window", abstract = "Sub-prime mortgage crisis which began in the US is
regarded as the most economic crisis since the Great Depression in the
early 20th century. Especially, hidden problems on efficient operation
of a business were disclosed at a time and many financial institutions
went bankrupt and filed for court receivership. The collapses of
physical market lead to bankruptcy of manufacturing and construction
businesses. This study is to analyze dynamic efficiency of construction
businesses during the five years at the turn of the global financial
crisis. By discovering the trend and stability of efficiency of a
construction business, this study-s objective is to improve
management efficiency of a construction business in the
ever-changing construction market. Variables were selected by
analyzing corporate information on top 20 construction businesses in
Korea and analyzed for static efficiency in 2008 and dynamic
efficiency between 2006 and 2010. Unlike other studies, this study
succeeded in deducing efficiency trend and stability of a construction
business for five years by using the DEA/Window model. Using the
analysis result, efficient and inefficient companies could be figured
out. In addition, relative efficiency among DMU was measured by
comparing the relationship between input and output variables of
construction businesses. This study can be used as a literature to
improve management efficiency for companies with low efficiency
based on efficiency analysis of construction businesses.", keywords = "Construction Company, DEA, DEA/Window,
Efficiency Analysis", volume = "5", number = "12", pages = "715-5", }