| Title |
Measuring Relative Efficiency of Architectural Firms in Korea using DEA/Window Models |
| Authors |
Kim Sung-Sik ; Park Jung-Lo ; Kim Jae-Jun ; Oh Jung-Keun |
| Keywords |
Data Envelopment Analysis ; Architecture Firm ; Dynamic Efficiency ; Efficiency |
| Abstract |
In the wake of the 2008 global financial crisis, the business efficiency of a growing number of domestic architecture firms began to be seriously threatened, raising the need for an in depth analysis of the roles and stature of architectural firms. In this regard, the study analyzed static and dynamic efficiency of domestic large architectural firms, based on the DEA(Data Envelopment Analysis)/Window model for the periods before and after the global financial crisis. Based on the analysis results, architectural firms that could be benchmarking cases for other companies were identified. The input variables included the capital amount and a number of employees, and the output variables included revenue and net income. Seven architectural firms scored 1 for BCC(Banker, Charnes, Cooper) efficiency among them, four scored 1 for CCR(Charnes, Cooper, Rhodes) efficiency as well. In terms of return to scale, 7 firms showed IRS(Increasing Returns to Scale), 4 firms showed DRS (Decreasing Returns to Scale), and 4 firms showed CRS(Constant Returns to Scale). In addition, the efficiency stability of the twenty architectural firms over the past five years could be determined by analyzing SD(Standard deviation), LDY(Largest difference between scores in the same year), and LDP(Largest difference between scores the entire period) for Window-specific efficiency. |