Efficiency Measurement in Construction Sector Using Data Envelopment Analysis Method

Abstract

In addition to physiological needs such as hunger and thirst, people also have shelter needs. As a result of natural disasters such as fire, flood, earthquake, epidemics and wars, people settle in different regions. The world's increasing population, epidemics and disasters show how priority and vital the construction industry is. The earthquake disaster in Turkey and the increasing migration due to wars in the border regions once again reveal how important and priority the construction sector is for Turkey. As in many other sectors, labor and financial resources must be used efficiently in the construction industry. Measuring the efficiency of construction companies operating in Turkey is very important for the current situation of the construction industry. This study aims to evaluate the efficiency of ten companies on the Fortune 500 list operating in the field of construction and contracting in Turkey. The Data Envelopment Analysis (DEA) method is generally widely used in efficiency measurement. In the study, input-oriented CCR model and Super Efficiency (SE)-CCR model were used for efficiency analysis. For DEA analysis, "total assets" and "number of employees" were used as input variables, and "net sales" were used as output variables. According to the DEA analysis results, three of the ten companies considered as decision-making units (DMU) were efficient. Efficient companies are ranked among themselves according to the results of the SE CCR model.