Performance measurement with multiple interrelated variables and threshold target levels:evidence from retail firms in the US

Zervopoulos, Panagiotis D., Brisimi, Theodora S., Emrouznejad, Ali and Cheng, Gang (2016). Performance measurement with multiple interrelated variables and threshold target levels:evidence from retail firms in the US. European Journal of Operational Research, 250 (1), 262–272.

Abstract

In this study, we developed a DEA-based performance measurement methodology that is consistent with performance assessment frameworks such as the Balanced Scorecard. The methodology developed in this paper takes into account the direct or inverse relationships that may exist among the dimensions of performance to construct appropriate production frontiers. The production frontiers we obtained are deemed appropriate as they consist solely of firms with desirable levels for all dimensions of performance. These levels should be at least equal to the critical values set by decision makers. The properties and advantages of our methodology against competing methodologies are presented through an application to a real-world case study from retail firms operating in the US. A comparative analysis between the new methodology and existing methodologies explains the failure of the existing approaches to define appropriate production frontiers when directly or inversely related dimensions of performance are present and to express the interrelationships between the dimensions of performance.

Publication DOI: https://doi.org/10.1016/j.ejor.2015.08.055
Divisions: Aston Business School > Operations & Information Management
Additional Information: -© 2015, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Uncontrolled Keywords: balanced scorecard,data envelopment analysis,OR in service industries,performance management,Management Science and Operations Research,Modelling and Simulation,Information Systems and Management
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2016-04-01
Authors: Zervopoulos, Panagiotis D.
Brisimi, Theodora S.
Emrouznejad, Ali ( 0000-0001-8094-4244)
Cheng, Gang

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