Performance Evaluation in Strategic Alliances: A Case of Vietnamese Construction Industry

Construction industry in Vietnam is concerned as one of the most crucial industries which contributes a large portfolio in the development of country. However, the competitive situation in the current market issued a challenge to construction enterprises which required an optimal business management. Hence, in this research, performance evaluation is constructed by applying the up-to-date data envelopment analysis method assisting firms to determine the efficiency and seek for the potential strategic alliances. Grey forecasting model—GM (1,1) is manipulated to predict the statistical data based on the consecutive past data, which gives managers a further vision on potential development. A number of decision-making units (construction companies) are carefully selected from the stock exchange markets performing the similar tasks (nearly 70% total revenue spent on construction work). Besides, the super-SBM method is conveyed to supplement the DEA model in ranking efficiency to point out the best DMU corresponding to the highest performance score. The targeted company is then highly recommended to cooperate with the efficient company in terms of strategic alliances. The result of this study found that the number of efficient companies and the order of ranking change annually. Some suggestions and discussion are mentioned here on how to improve more precisely the performance in the future based on the integration of data envelopment analysis (DEA) and Grey theory model.