Benchmarking for investment decisions: a case of food production

Abstract

Purpose

The paper aims to focus on improving the methodology and developing the model of choice of optimal investment object using benchmarking tools that eliminate the drawbacks of existing approaches.

Design/methodology/approach

The methodological basis of the proposed model is frontier analysis, namely the nonparametric data envelopment analysis. Using this and other benchmarking tools, the author introduces the concept and mathematical model for evaluation of super‐attractiveness for investors that allows a full ranking of potential objects for investment.

Findings

The concept of variable investment decision that combines various periods, varying degrees of risk and other decision characteristics with a common purpose of maximizing the benefits from investments is defined. The model for the making of variable investment decisions is developed.

Practical implications

The proposed model enables strategic and portfolio investors to implement the optimal choice of investment object. It is demonstrated on a case of the food production of Ukraine.

Originality/value

This paper adopts benchmarking tools to the decision‐making process to optimal choice of investment object.

Citation

Goncharuk, A.G. (2011), "Benchmarking for investment decisions: a case of food production", Benchmarking: An International Journal, Vol. 18 No. 5, pp. 694-704. https://doi.org/10.1108/14635771111166820