Xiancun Hu

Profitability performance assessment in the Australian construction industry: a global relational two-stage DEA method

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.

Energy productivity and total-factor productivity in the Australian construction industry

There is urgent need to consider energy consumption when measuring total-factor productivity in the construction industry. This paper adopts the Malmquist index method to investigate the factors affecting the energy productivity of the Australian construction industry and compares them with those decomposed from the total-factor productivity. An input-oriented distance function and a contemporaneous benchmark technology are employed to develop the data envelopment analysis models. The Malmquist productivity index is decomposed into the technological change, pure technical efficiency change and activity effect to gain comprehensive insights into changes of construction productivity in the Australian states and territories over the past two decades. Research results show that both energy productivity and total-factor productivity improved in Australia, particularly related to technological development. The pure technical efficiency and activity indices changed slightly over time or across regions. This study demonstrates that there exists a linkage between energy productivity and total-factor productivity through their technological and technical efficiency changes. The Australian construction industry could enhance these two productivities by introducing advanced technologies and implementing them efficiently.

Slacks-based data envelopment analysis for eco-efficiency assessment in the Australian construction industry

Abstract Eco-efficiency as an important indicator for sustainability assessment can describe an integrated manner of economic growth, resource conservation and environmental protection. However, the current research could not correctly assess eco-efficiency and mostly utilize qualitative methods. This paper presents a new method called slacks-based Data Envelopment Analysis (DEA) to assess eco-efficiency based on directly and systematically dealing with the slacks of reducing resource consumption and minimizing environmental impacts, together with adding production value. Two DEA models are respectively, defined using inter-temporal and window benchmark techniques, so as to compare eco-efficiency results in temporal and spatial dimensions and then identify production benchmarks and gaps. Efficiency change and technological change, which are two driving forces for eco-efficiency change, are also investigated through a production-theoretical decomposition analysis. Data from the Australian construction industry from 1990 to 2013 are employed to specify the two DEA models. The research results illustrate that the construction industries in the Australian regions showed significant increases in eco-efficiency during the research period, but the gaps among them were increased due to the severe underperformance of technological change. This research primarily provides a innovative pathway for accurate eco-efficiency assessment and quantitative identification of reducing resource consumption, minimizing environmental impacts and adding production value. The developed research framework is generic and can assist worldwide construction projects, organizations and industries to measure, compare and assess eco-efficiency systematically.

Total factor productivity measurement with carbon reduction

Purpose The purpose of this paper is to present an approach for productivity measurement that considers both construction growth and carbon reduction. Design/methodology/approach The approach applied is a sequential Malmquist-Luenberger productivity analysis based on a directional distance function and sequential benchmark technology using the data envelopment analysis (DEA) technique. The sequential Malmquist-Luenberger productivity change index is decomposed into pure technical efficiency, scale efficiency, and technological change indices, in order to investigate the driving forces for productivity change. Findings The construction industries of the Australian states and territories were selected implement the new approach. The results indicate that construction growth and carbon reduction can be achieved simultaneously through the learning of techniques from benchmarks. Practical implications Current research on total factor productivity (TFP) in construction generally neglects carbon emissions. This does not accurately depict the nature of construction and therefore yields biased estimation results. TFP measurement should consider carbon reduction, which is beneficial for policymakers to promote sustainable productivity development in the construction industry. Originality/value The approach developed here is generic and enhances productivity and DEA research levels in construction. This research can be used to formulate policies for evaluating performance in worldwide construction projects, organizations and industries by considering undesirable outputs and desirable outputs simultaneously, and for promoting sustainable development in construction by identifying competitiveness factors.