Efficiency estimation and reduction potential of the Chinese construction industry via SE-DEA and artificial neural network
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 13 April 2020
Issue publication date: 22 July 2020
Abstract
Purpose
The objective of this study is to evaluate the overall technical efficiency, labor efficiency, capital efficiency and equipment efficiency of 30 Chinese construction sectors to foster sustainable economic growth in the construction industry.
Design/methodology/approach
This study employed the super-efficiency data envelopment analysis (SE-DEA) and artificial neural network model (ANN) to evaluate the industrial performance and improvement potential of the Chinese regional construction sectors from 2000 to 2017.
Findings
Results showed that the overall technical and capital efficiencies displayed relatively stable patterns. Equipment efficiency presented a relatively huge fluctuation during the sample period. Meanwhile, labor, capital and equipment efficiencies could potentially improve in the next five years. A spatial examination of efficiencies implied that the economic level was still a major factor in determining the efficiency performance of the regional construction industry. Beijing, Shanghai and Zhejiang were consistently the leading regions with the best performance in all efficiencies. Shandong and Hubei were critical regions with respect to their large reduction potential of labor, capital and equipment.
Research limitations/implications
The study focused on the regional efficiency performance of the construction industry; however, it failed to further deeply discover the mechanism that captured the regional inefficiency. In addition, sample datasets used to predict might induce the accuracy of prediction results. Qualitative policy implications failed to regress the efficiency performance of the industrial policy variables. These limitations will be discussed in our further researches.
Practical implications
Enhancing the overall performance of the Chinese construction industry should focus on regions located in the western areas. In comparison with labor and capital efficiencies, equipment efficiency should be given priority by eliminating outdated equipment and developing high technology in the construction industry. In addition, the setting of the national reduction responsibility system should be stratified to account for regional variations.
Originality/value
The findings of this study can provide a systematic understanding for the current and future industry performance of the Chinese construction industry, which would help decision makers to customize appropriate strategies to improve the overall industrial performance with the consideration of regional differences.
Keywords
Acknowledgements
The authors wish to express their sincere gratitude to the Fundamental Research Funds for the Central Universities (No. 2019CDSKXYJSG0041), the Natural Science Foundation of China (Grant No. 71801023), and Chongqing Science & Technology Commission (No. cstc2018jcyjAX0099) for funding this research project. Appreciation is also due to all members of the research team for their invaluable contributions.
Citation
Yuan, F., Tang, M. and Hong, J. (2020), "Efficiency estimation and reduction potential of the Chinese construction industry via SE-DEA and artificial neural network", Engineering, Construction and Architectural Management, Vol. 27 No. 7, pp. 1533-1552. https://doi.org/10.1108/ECAM-10-2019-0564
Publisher
:Emerald Publishing Limited
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