An integrated solution for benchmarking using DEA, gray entropy, and Borda count

Abstract

The challenge of finding a system for effective benchmarking has recently become a key issue, as enterprises experience ever-increasing needs to struggle for competitive advantage and performance improvement in productivity. Identifying the best performer is the pivotal element in the process of benchmarking. In the search for the best performer, this paper proposes using the super-efficiency DEA model and the gray entropy scoring method to conduct the relevant efficiency evaluation and ranking, and using the Borda count to incorporate the ranked lists. The research findings show that the proposed solution can provide valuable insights as well as discover the best performer for informed analysis.

Keywords:

• benchmarking
• efficiency evaluation
• DEA
• gray entropy
• Borda count

Acknowledgements

This paper has undertaken the task of demonstrating the usefulness of a proposed integrated solution for benchmarking for the purposes of searching out the best performer and has contributed to the extension of practical applications by incorporating DEA, GE, and Borda count in efficiency evaluation and ranking. One limitation of this study is, however, that while the Borda count method is eminently simple and straightforward, it does not consider the issue of priority for each individual ranked list. This is a significant issue calling for further future research.