Benchmarking Automotive and Parts Manufacturing Companies Based on Intellectual Capital Using Data Envelopment Analysis

Subject Areas : International Journal of Data Envelopment Analysis

Mohsen Mirzaee ¹ , Moein Zareian ²

1 - Department of Mathematics, Astaneh Ashrafiyeh Branch, Islamic Azad University, Astaneh Ashrafiyeh, Iran
2 - Department of Accounting, Astaneh Ashrafiyeh Branch, Islamic Azad University, Astaneh Ashrafiyeh, Iran

Received: 2021-11-07 Accepted : 2022-01-20 Published : 2022-02-01

Keywords: Benchmarking, efficiency ranking, Intellectual Capital, Data Envelopment Analysis,

Abstract :

Benchmarking is a systematic way by which organizations can measure and modify their activities based on the best industry or organization. The purpose of this study is to rank and evaluate the performance of automotive and parts manufacturing companies presented in the Tehran Stock Exchange using data envelopment analysis and also to benchmark inefficient companies-years. Practical results are also provided based on mathematical models to find the position of automotive and parts manufacturing companies compared to each other and to maximize their performance. The components of companies' intellectual capital, including human capital, structural capital, capital employed and innovative capital are considered as inputs. Also, return on assets, return on equity, return on sales and net profit per share are deemed as outputs which are extracted from the financial statements of the sample companies during the ten years 2010-2019. The performance of the units is evaluated using the output-oriented CCR model. 26 out of 280 member-year sample companies were determined as efficient. Then, the Anderson-Peterson model is used to rank them. Also, benchmarking for inefficient units are done applying the envelopment form and GAMS software, which can be used to observe the behavior of inefficient companies, in order to target to improve organizational performance.