Sustainable Performance Measurement: An Application to the U.S. Car Industry

Abstract

This study measures the sustainable performance of ten car manufacturers operating in the U.S. We took into account three dimensions of sustainability: (a) economic, (b) environmental, and (c) social. Our methodology drew on the generalized directional distance function data envelopment analysis in conjunction with the multi-parametric method for bias correction of efficiency estimators. The combination of the two methods reduced the bias of efficiency estimators, which was sourced from the dimensionality of the production set and the sample size. Our analysis revealed that Chrysler-Fiat, GM, and Ford have the worst sustainable performance among firms under review over the years 2014–2018.