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Analyzing Operational Efficiency in Real Estate Companies: An Application of GM (1,1) and DEA Malmquist Model

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  • Chia-Nan Wang

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan)

  • Thi-Ly Nguyen

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan)

  • Thanh-Tuan Dang

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
    Department of Logistics and Supply Chain Management, Hong Bang International University, Ho Chi Minh 723000, Vietnam)

Abstract

Real estate management and its operation play a crucial role in supporting company operation. Going hand-in-hand with the rapid growth of companies, the real estate portfolio has expanded dramatically, attracting large numbers of domestic and foreign investors. This paper studied the top 12 real estate companies listed on Vietnam’s stock market to develop a method that combines the Grey methodology and the Data Envelopment Analysis (DEA) Malmquist model, intending to predict and evaluate their performances in two periods: 2015–2018 and 2019–2022. The proposed model considered three input factors, namely total assets, cost of sales, and cost of goods sold, and two output factors, namely total revenue and gross profit. Findings revealed that drastic efficiency changes in some companies should be observed at the beginning of the process, even if the technological efficiency in the period is stable. In the future period, most companies achieved relatively stable productivity. This study serves as a reference for policymakers and strategy makers by analyzing insights for the operational status of real estate businesses and providing an overview in the future toward sustainable development.

Suggested Citation

  • Chia-Nan Wang & Thi-Ly Nguyen & Thanh-Tuan Dang, 2021. "Analyzing Operational Efficiency in Real Estate Companies: An Application of GM (1,1) and DEA Malmquist Model," Mathematics, MDPI, vol. 9(3), pages 1-28, January.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:3:p:202-:d:483398
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    References listed on IDEAS

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    1. Chia-Nan Wang & Hector Tibo & Duy Hung Duong, 2020. "Renewable Energy Utilization Analysis of Highly and Newly Industrialized Countries Using an Undesirable Output Model," Energies, MDPI, vol. 13(10), pages 1-21, May.
    2. Drake, Leigh & Hall, Maximilian J. B., 2003. "Efficiency in Japanese banking: An empirical analysis," Journal of Banking & Finance, Elsevier, vol. 27(5), pages 891-917, May.
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    4. Chia-Nan Wang & Thanh-Tuan Dang & Ngoc-Ai-Thy Nguyen & Thi-Thu-Hong Le, 2020. "Supporting Better Decision-Making: A Combined Grey Model and Data Envelopment Analysis for Efficiency Evaluation in E-Commerce Marketplaces," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
    5. Thi-Nham Le & Chia-Nan Wang, 2017. "The Integrated Approach for Sustainable Performance Evaluation in Value Chain of Vietnam Textile and Apparel Industry," Sustainability, MDPI, vol. 9(3), pages 1-21, March.
    6. Liu, Fuh-Hwa Franklin & Wang, Peng-hsiang, 2008. "DEA Malmquist productivity measure: Taiwanese semiconductor companies," International Journal of Production Economics, Elsevier, vol. 112(1), pages 367-379, March.
    7. Chia-Nan Wang & Tsang-Ta Tsai & Hsien-Pin Hsu & Le-Hoang Nguyen, 2019. "Performance Evaluation of Major Asian Airline Companies Using DEA Window Model and Grey Theory," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
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    Cited by:

    1. Hirofumi Fukuyama & Yong Tan, 2023. "Estimating market power under a nonparametric analysis: evidence from the Chinese real estate sector," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 45(2), pages 599-622, June.
    2. Chia-Nan Wang & Phi-Hung Nguyen & Thi-Ly Nguyen & Thi-Giang Nguyen & Duc-Thinh Nguyen & Thi-Hoai Tran & Hong-Cham Le & Huong-Thuy Phung, 2022. "A Two-Stage DEA Approach to Measure Operational Efficiency in Vietnam’s Port Industry," Mathematics, MDPI, vol. 10(9), pages 1-21, April.

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