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Integrated Approach to Construction of Benchmarking Network in DEA-Based Stepwise Benchmark Target Selection

Author

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  • Jaehun Park

    () (Quality Management Operation Department, Defense Agency for Technology and Quality, 420 Dongjin-ro, Jinju-si, Gyeongsangnam-do 660-031, Korea)

  • Si-Il Sung

    () (Quality Management Operation Department, Defense Agency for Technology and Quality, 420 Dongjin-ro, Jinju-si, Gyeongsangnam-do 660-031, Korea)

Abstract

Stepwise benchmark target selection in data envelopment analysis (DEA) is a realistic and effective method by which inefficient decision-making units (DMUs) can choose benchmarks in a stepwise manner. We propose, for the construction of a benchmarking network (i.e., a network structure consisting of an alternative sequence of benchmark targets), an approach that integrates the cross-efficiency DEA, K-means clustering and context-dependent DEA methods to minimize resource improvement pattern inconsistency in the selection of the intermediate benchmark targets (IBTs) of an inefficient DMU. The specific advantages and overall effectiveness of the proposed method were demonstrated by application to a case study of 34 actual container terminal ports and the successful determination of the stepwise benchmarking path of an inefficient DMU.

Suggested Citation

  • Jaehun Park & Si-Il Sung, 2016. "Integrated Approach to Construction of Benchmarking Network in DEA-Based Stepwise Benchmark Target Selection," Sustainability, MDPI, Open Access Journal, vol. 8(7), pages 1-15, June.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:600-:d:72847
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    References listed on IDEAS

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    1. Seiford, Lawrence M. & Zhu, Joe, 2003. "Context-dependent data envelopment analysis--Measuring attractiveness and progress," Omega, Elsevier, vol. 31(5), pages 397-408, October.
    2. Donthu, Naveen & Hershberger, Edmund K. & Osmonbekov, Talai, 2005. "Benchmarking marketing productivity using data envelopment analysis," Journal of Business Research, Elsevier, vol. 58(11), pages 1474-1482, November.
    3. Boaz Golany & Sten Thore, 1997. "Restricted best practice selection in DEA: An overview with a case study evaluating the socio-economic performance of nations," Annals of Operations Research, Springer, vol. 73(0), pages 117-140, October.
    4. Sebastián Lozano & Gabriel Villa, 2010. "Gradual technical and scale efficiency improvement in DEA," Annals of Operations Research, Springer, vol. 173(1), pages 123-136, January.
    5. Sharma, Mithun J. & Yu, Song Jin, 2010. "Benchmark optimization and attribute identification for improvement of container terminals," European Journal of Operational Research, Elsevier, vol. 201(2), pages 568-580, March.
    6. Vis, Iris F. A. & de Koster, Rene, 2003. "Transshipment of containers at a container terminal: An overview," European Journal of Operational Research, Elsevier, vol. 147(1), pages 1-16, May.
    7. Liang Liang & Jie Wu & Wade D. Cook & Joe Zhu, 2008. "The DEA Game Cross-Efficiency Model and Its Nash Equilibrium," Operations Research, INFORMS, vol. 56(5), pages 1278-1288, October.
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    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:8:p:1483-:d:109144 is not listed on IDEAS
    2. repec:eee:jomega:v:78:y:2018:i:c:p:237-251 is not listed on IDEAS

    More about this item

    Keywords

    data envelopment analysis (DEA); benchmarking network; efficiency; multi-criteria;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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