Using Benchmarking Tools to Investigate Performance of Firms

Abstract

This thesis aims at exploring the use of Benchmarking tools to evaluate the performance of Belgian hospitals, considered as multi-output organizations. In a context where many hospitals face structural challenges, this study proposes a hybrid methodological framework combining Data Envelopment Analysis (DEA), multiple linear regression and ESG (Environment, Social, and Governance) indicators.

The DEA model is used to measure technical efficiency and identify high-performing hospitals (“leaders”), while multiple regression helps explain performance gaps by integrating ESG indicators. The analysis is based on a panel of 13 comparable hospitals across the three Belgian regions (Flanders, Wallonia, and Brussels), over a six-year period (2018-2023).

The results show that only two hospitals were constantly efficient—performant—according to the three DEA models (CCR, BCC, and financial efficiency score). Most institutions exhibit inefficiencies either in their internal management or their scale of operation. Scale efficiency appears to be a key determinant of financial efficiency. Additionally, ESG indicators —especially those linked to social and governance pillars—have a positive and statistically significant effect on global and scale efficiencies, but less influence on short-term technical and financial efficiencies.

This work sheds light on the value of a hybrid approach that combines technical, financial and ESG performance, to provide a more holistic perspective on hospital performance assessment. It contributes to the academic literature by offering a replicable methodology for evaluating complex firms and by providing insights for policymakers seeking to improve the performance of their institutions.