IDEAS home Printed from https://ideas.repec.org/a/eee/epplan/v79y2020ics0149718918303963.html
   My bibliography  Save this article

Improving performance evaluation based on balanced scorecard with grey relational analysis and data envelopment analysis approaches: Case study in water and wastewater companies

Author

Listed:
  • Sarraf, Fatemeh
  • Nejad, Shabnam Hashemi

Abstract

Various approaches are used to measure the firms’ performance. Grey relational analysis is one of the multiple attribute decision-making methods and data envelopment analysis is used to calculate the efficiency. Regarding the importance of water and wastewater companies’ services, the present study, evaluates the performance and rank these companies by using grey relational analysis and data envelopment analysis approaches based on balanced scorecard criteria. Besides, balanced scorecard considers all levels of organization. In this research, statistical population includes thirty-five municipal water and wastewater companies in Iran for the year 2017. In order to ascertain grey relational grade, fuzzy normalization method was used then by subtracting normalized numbers from one, reference sequences obtained and in the next step, grey relational coefficient was calculated and finally, grey relational grade was determined by multiplying relative weight from Shannon entropy to relational coefficients. In order to assess companies’ efficiency in data envelopment analysis, after ascertaining input and output indices, with the assumption of constant returns to scale and output-oriented viewpoint, the efficiency scores were calculated. Also, to rank efficient units Anderson-Petersen model implemented. Results demonstrated that, grey relational analysis is a more accurate method to measure the performance of water and wastewater companies.

Suggested Citation

  • Sarraf, Fatemeh & Nejad, Shabnam Hashemi, 2020. "Improving performance evaluation based on balanced scorecard with grey relational analysis and data envelopment analysis approaches: Case study in water and wastewater companies," Evaluation and Program Planning, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:epplan:v:79:y:2020:i:c:s0149718918303963
    DOI: 10.1016/j.evalprogplan.2019.101762
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0149718918303963
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.evalprogplan.2019.101762?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    2. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.
    3. Vilanova, Mateus Ricardo Nogueira & Magalhães Filho, Paulo & Balestieri, José Antônio Perrella, 2015. "Performance measurement and indicators for water supply management: Review and international cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1-12.
    4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    5. Lin, Sue J. & Lu, I.J. & Lewis, Charles, 2007. "Grey relation performance correlations among economics, energy use and carbon dioxide emission in Taiwan," Energy Policy, Elsevier, vol. 35(3), pages 1948-1955, March.
    6. Basso, Antonella & Casarin, Francesco & Funari, Stefania, 2018. "How well is the museum performing? A joint use of DEA and BSC to measure the performance of museums," Omega, Elsevier, vol. 81(C), pages 67-84.
    7. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    8. Varmazyar, Mohsen & Dehghanbaghi, Maryam & Afkhami, Mehdi, 2016. "A novel hybrid MCDM model for performance evaluation of research and technology organizations based on BSC approach," Evaluation and Program Planning, Elsevier, vol. 58(C), pages 125-140.
    9. María Molinos-Senante & Simon Porcher & Alexandros Maziotis, 2018. "Productivity change and its drivers for the Chilean water companies: A comparison of full private and concessionary companies," Post-Print hal-02145824, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xu Zhou & Shangsheng Ren & Shuo Zhang & Jiuling Zhang & Yibo Wang, 2022. "Risk Evaluation Model of Coal Spontaneous Combustion Based on AEM-AHP-LSTM," Mathematics, MDPI, vol. 10(20), pages 1-16, October.
    2. Ma, Shuaiyin & Huang, Yuming & Liu, Yang & Kong, Xianguang & Yin, Lei & Chen, Gaige, 2023. "Edge-cloud cooperation-driven smart and sustainable production for energy-intensive manufacturing industries," Applied Energy, Elsevier, vol. 337(C).
    3. Yuanyuan Luo & Da Ren, 2021. "Influence of the enterprise’s intelligent performance evaluation model using neural network and genetic algorithm on the performance compensation of the merger and acquisition parties in the commitmen," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-16, March.
    4. Jiayin Xu & Xu Gui & Kun Li & Guifen Jiang & Tao Wang & Zhen Xu, 2023. "Microgrid Robust Planning Model and Its Modification Strategy Based on Improved Grey Relational Theory," Sustainability, MDPI, vol. 15(3), pages 1-23, February.
    5. Zhao, Xue & Xie, Chengyuan & Huang, Lu & Wang, Yaru & Han, Tongyun, 2023. "How digitalization promotes the sustainable integration of culture and tourism for economic recovery," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 988-1000.
    6. Peigui Liu & Shuoya Cheng & Manting Shang & Yang Gao & Song Wei, 2023. "Effect of Weight of Water Resources Carrying Capacity Evaluation Index on Its Evaluation Results in Xinjiang, China," Sustainability, MDPI, vol. 15(3), pages 1-14, February.
    7. Liu, Bingchun & Song, Jiangji & Wang, Qingshan & Xu, Yan & Liu, Yifan, 2023. "Charging station forecasting and scenario analysis in China," Transport Policy, Elsevier, vol. 139(C), pages 87-98.
    8. Chaplygin, V. & Moroz, V., 2022. "Decision making on the technology transfer in regional innovation cluster under uncertainty and risk," Journal of the New Economic Association, New Economic Association, vol. 53(1), pages 121-142.
    9. Kaya, Gizem & Aydın, Umut & Ülengin, Burç & Karadayı, Melis Almula & Ülengin, Füsun, 2023. "How do airlines survive? An integrated efficiency analysis on the survival of airlines," Journal of Air Transport Management, Elsevier, vol. 107(C).
    10. Afrasiabi, Ahmadreza & Chalmardi, Mazyar Kaboli & Balezentis, Tomas, 2022. "A novel hybrid evaluation framework for public organizations based on employees’ performance factors," Evaluation and Program Planning, Elsevier, vol. 91(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Helmi Hammami & Thanh Ngo & David Tripe & Dinh-Tri Vo, 2022. "Ranking with a Euclidean common set of weights in data envelopment analysis: with application to the Eurozone banking sector," Annals of Operations Research, Springer, vol. 311(2), pages 675-694, April.
    2. Marijana Petrović & Nataša Bojković & Mladen Stamenković, 2018. "A Dea-Based Tool For Tracking Best Practice Exemplars: The Case Of Telecommunications In Ebrd Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 63(218), pages 105-128, July – Se.
    3. Barak, Sasan & Dahooei, Jalil Heidary, 2018. "A novel hybrid fuzzy DEA-Fuzzy MADM method for airlines safety evaluation," Journal of Air Transport Management, Elsevier, vol. 73(C), pages 134-149.
    4. Büschken, Joachim, 2009. "When does data envelopment analysis outperform a naïve efficiency measurement model?," European Journal of Operational Research, Elsevier, vol. 192(2), pages 647-657, January.
    5. Seyed Rakhshan & Ali Kamyad & Sohrab Effati, 2015. "Ranking decision-making units by using combination of analytical hierarchical process method and Tchebycheff model in data envelopment analysis," Annals of Operations Research, Springer, vol. 226(1), pages 505-525, March.
    6. Roberto Cervelló Royo & Fernando García García & Francisco Guijarro-Martínez & Ismael Moya-Clemente, 2011. "Housing Ranking: a model of equilibrium between buyers and sellers expectations," ERSA conference papers ersa11p314, European Regional Science Association.
    7. Mousavi, Mohammad M. & Ouenniche, Jamal & Xu, Bing, 2015. "Performance evaluation of bankruptcy prediction models: An orientation-free super-efficiency DEA-based framework," International Review of Financial Analysis, Elsevier, vol. 42(C), pages 64-75.
    8. Kao, Chiang & Liu, Shiang-Tai, 2019. "Cross efficiency measurement and decomposition in two basic network systems," Omega, Elsevier, vol. 83(C), pages 70-79.
    9. Ramanathan, Ramakrishnan & Ramanathan, Usha & Bentley, Yongmei, 2018. "The debate on flexibility of environmental regulations, innovation capabilities and financial performance – A novel use of DEA," Omega, Elsevier, vol. 75(C), pages 131-138.
    10. Feng Li & Han Wu & Qingyuan Zhu & Liang Liang & Gang Kou, 2021. "Data envelopment analysis cross efficiency evaluation with reciprocal behaviors," Annals of Operations Research, Springer, vol. 302(1), pages 173-210, July.
    11. Guilhermina Rego & Rui Nunes & José Costa, 2010. "The challenge of corporatisation: the experience of Portuguese public hospitals," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(4), pages 367-381, August.
    12. Liu, John S. & Lu, Wen-Min, 2010. "DEA and ranking with the network-based approach: a case of R&D performance," Omega, Elsevier, vol. 38(6), pages 453-464, December.
    13. Tran, Trung Hieu & Mao, Yong & Nathanail, Paul & Siebers, Peer-Olaf & Robinson, Darren, 2019. "Integrating slacks-based measure of efficiency and super-efficiency in data envelopment analysis," Omega, Elsevier, vol. 85(C), pages 156-165.
    14. Partovi, Fariborz Y., 2011. "Corporate philanthropic selection using data envelopment analysis," Omega, Elsevier, vol. 39(5), pages 522-527, October.
    15. Sharon Hadad & Yossi Hadad & Tzahit Simon-Tuval, 2013. "Determinants of healthcare system’s efficiency in OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 253-265, April.
    16. Dariush Akbarian, 2015. "Ranking All DEA-Efficient DMUs Based on Cross Efficiency and Analytic Hierarchy Process Methods," Journal of Optimization, Hindawi, vol. 2015, pages 1-10, January.
    17. Aneirson Francisco Silva & Fernando Augusto S. Marins & Erica Ximenes Dias, 2020. "Improving the discrimination power with a new multi-criteria data envelopment model," Annals of Operations Research, Springer, vol. 287(1), pages 127-159, April.
    18. Jahanshahloo, Gholam Reza & Junior, Helcio Vieira & Lotfi, Farhad Hosseinzadeh & Akbarian, Darush, 2007. "A new DEA ranking system based on changing the reference set," European Journal of Operational Research, Elsevier, vol. 181(1), pages 331-337, August.
    19. Salvatore Greco & Alessio Ishizaka & Menelaos Tasiou & Gianpiero Torrisi, 2019. "On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 61-94, January.
    20. C Kao & H-T Hung, 2005. "Data envelopment analysis with common weights: the compromise solution approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1196-1203, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:epplan:v:79:y:2020:i:c:s0149718918303963. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/evalprogplan .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.