Apply DEA model and grey theory to evaluate companies performance and raise opportunities in strategic alliance of the plastic industry in Vietnam

Abstract

In the plastic industry in Vietnam, an important issue becomes increasing productivity performance and sustainable development. This research builds upon a current Data Development Analysis method which helps companies identify the efficiency and seek out potential strategic alliances the performance evaluation. Grey predicting - GM (1,1) is manipulated to foresee future statistics based on the successive past data gathered from the audited financial statements that give further insight into the potential trend. This can improve business performance and create a sustainable development strategy for decision-making units (DMUs). The study was carried out by 13 plastic companies which published their full information on Vietstock's website. In addition, the super-SBM method also supplements the DEA in the ranking efficiency to indicate the best DMU with the highest level of performance. The targeted company will then cooperate in terms of strategic alliances with the efficient company. The results of this study have shown that the number of effective firms and the ranking order change every year. Some suggestions and discussion on how to improve the performance of the DEA and Grey model theory more precisely in the future are mentioned.