In management contexts, mathematical programming is usually used to evaluate a collection of possible alternative courses action en route selecting one which best. this capacity, serves as planning aid management. Data Envelopment Analysis reverses role and employs obtain ex post facto evaluations the relative efficiency accomplishments, however they may have been planned or executed. Mathematical thereby extended for use tool control evaluation past accomplishments well in future...

We evaluate, by means of mathematical programming formulations, the relative technical and scale efficiencies decision making units (DMUs) when some inputs or outputs are exogenously fixed beyond discretionary control DMU managers. This approach further develops work on efficiency evaluation estimation efficient production frontiers known as data envelopment analysis (DEA). also employ model to provide input output targets for managers in a way that specifically accounts nature outputs....

A fundamental assumption in cost accounting is that the relation between costs and volume symmetric for increases decreases. In this study, we investigate whether are “sticky”—that is, increase more when activity rises than they decrease falls by an equivalent amount. We find, 7,629 firms over 20 years, selling, general, administrative (SG&A) on average 0.55% per 1% sales but only 0.35% sales. Our analysis compares traditional model of behavior which move proportionately with changes...

Several accounting and other signals are generally available for the construction of a managerial performance evaluation measure on which an optimal compensation contract is based. The demand aggregation in evaluating arises because reporting all basic transactions nonfinancial information about costly impracticable (see Ashton [1982], Casey [1978], Holmstrom Milgrom [1987]). We identify necessary sufficient conditions joint density function under linear aggregation, simple commonly employed...

Recent studies report an increasing use of nonfinancial measures such as product quality, customer satisfaction, and market share in performance measurement compensation systems. A growing literature suggests that because current are better predictors long-term financial than measures, they help refocus managers on the aspects their actions. However, little empirical evidence is available relation between performance, even less known about impacts incorporating incentive contracts. Using...

This paper provides a formal statistical basis for the efficiency evaluation techniques of data envelopment analysis (DEA). DEA estimators best practice monotone increasing and concave production function are shown to be also maximum likelihood if deviation actual output from efficient is regarded as stochastic variable with decreasing probability density function. While frontier estimator biased below theoretical finite sample size, bias approaches zero large samples. The exhibit desirable...

A DEA-based stochastic frontier estimation framework is presented to evaluate contextual variables affecting productivity that allows for both one-sided inefficiency deviations as well two-sided random noise. Conditions are identified under which a two-stage procedure consisting of DEA followed by ordinary least squares (OLS) regression analysis yields consistent estimators the impact variables. also in first stage maximum likelihood (MLE) second This requires be independent input variables,...

Data Envelopment Analysis has now been extensively applied in a range of empirical settings to identify relative inefficiencies, and provide targets for improvements. It accomplishes this by developing peer groups each unit being operated. The use categorical variables is an important extension which can improve the group construction process incorporate “on-off” characteristics, e.g., presence drive-in window or not banking network. relaxes stringent need factors display piecewise constant...

In recent years, the practitioner literature in operations management has seen a dramatic surge articles on quality management. It reflects increased emphasis by U.S. firms, which been attributed largely to competition faced them. The question of how is influenced competitive intensity, however, not received much attention, either or academic research literatures. notion intensity itself defined precisely. this paper, we develop formal models oligopolistic investigate whether equilibrium...

The balanced scorecard provides a framework for selecting multiple performance measures that supplement traditional financial with operating of customer satisfaction, internal processes, and learning growth activities. An essential aspect the lies in its articulation linkage between business strategy. This study conducts an experiment to assess how individuals' evaluations unit managers depend on strategically linked scorecard. Statistical test results indicate are influenced by more than...

This paper compares inferences about hospital cost and production correspondences from two different estimation models: (1) the econometric modeling of translog function, (2) application Data Envelopment Analysis (DEA). While there are numerous examples each approach to empirical data, this provides insights into relative strengths methods by applying both models same data. The results suggest that constant reruns operant, whereas DEA increasing decreasing returns scale may be observed in...

ABSTRACT We synthesize the growing literature on asymmetric cost behavior—a new way of thinking about costs and, by extension, earnings. While traditional behavior model describes a mechanistic relation between activity and costs, this alternative view recognizes primitives behavior—resource adjustment managerial decisions. These give rise to “sticky” “anti-sticky” along with “fixed” “variable” as extreme cases. formulate an integrated framework review empirical evidence in support its...

ABSTRACT Recent research documents the empirical phenomenon of “sticky costs” and attributes it to a theory deliberate managerial decisions in presence adjustment costs. We refine this theoretical explanation show that gives rise more complex pattern asymmetric cost behavior combines two opposing processes: stickiness conditional on prior sales increase, anti-stickiness decrease. These predictions reflect structure optimal with costs impact changes managers' expectations about future...

Purpose – The purpose of this paper is to investigate the relationship between strategic positioning firms and sustainability firm performance. argues that pursuing a differentiation strategy leads more sustainable financial performance compared following cost leadership strategy. However, may also be associated with greater risk. Design/methodology/approach To research questions, authors utilize publicly available archival data consisting 12,849 firm-year observations for period 1989-2003....

ABSTRACT We investigate analytically and empirically the relationship between demand uncertainty cost behavior. argue that with more uncertain demand, unusually high realizations of become likely. Accordingly, firms will choose a higher capacity fixed inputs when increases in order to reduce congestion costs. Higher levels imply rigid short-run structure lower variable formalize this “counterintuitive” argument simple analytical model choice. Following logic, we hypothesize facing have test...

article Free AccessSoftware complexity and maintenance costs Authors: Rajiv D. Banker Univ. of Minnesota, Minneapolis MinneapolisView Profile , Srikant M. Datar Stanford Univ., Stanford, CA CAView Chris F. Kemerer Massachusetts Institute Technology, Cambridge CambridgeView Dani Zweig Naval Postgraduate School, Monterey, Authors Info & Claims Communications the ACMVolume 36Issue 11Nov. 1993 pp 81–94https://doi.org/10.1145/163359.163375Published:01 November 1993Publication History...

We report the results of a longitudinal field study examining impact work teams on manufacturing performance. An electromechanical assembly plant was our research site from April 1992 throug...

Firms have been investing over $5 billion a year in recent years on new information technology and software their manufacturing plants. In this study, we develop conceptual model based the theory of dynamic capabilities to study how plants realize improvements plant performance by leveraging systems enable implementation advanced capabilities. We hypotheses about relationships between systems, impact practices, overall performance. Analysis survey data from 1,077 U.S. provides empirical...