Show Less
Restricted access

Data Envelopment Analysis: From Normative to Descriptive Performance Evaluation


Nadia Vazquez Novoa

The question of modern performance evaluation has been extensively discussed in the literature, leading to a call for models including non-optimizing behaviors of decision makers and non-financial performance criteria. A promising management instrument is data envelopment analysis (DEA), which enables the aggregation of financial and non-financial indicators into a single measure. This work contributes to a better understanding of DEA from two perspectives: (i) it offers a normative solution to the zero-value weight problem and (ii) it provides the first experimental results on behavioral DEA based on an original taxonomy of cognitive biases related to performance evaluation. Behavioral DEA is a completely new research area which yields plenty of research opportunities.

Show Summary Details
Restricted access

1. Introduction


← XVIII | 1 →

1.   Introduction

1.1   Motivation

Many different activities are necessary for the proper functioning of any organization, but one of them is essential: performance evaluation.2 Performance evaluation provides valuable information for decision facilitating and decision influencing, as it reveals the degree of success of the organization and has consequences on motivation, fairness perception and organizational behaviors.3 For this reason, it is one of the central topics in management accounting research, which has the goal of identifying and developing the most appropriate management techniques for each circumstance.4

Performance evaluation has been influenced by the paradigm of the homo oeconomicus, who is defined as a self-interested and optimizer (i.e., value-maximizer) agent. Yet these assumptions have been shown to be inadequate for describing real human behavior. As a consequence, future-oriented research in management accounting and control has been called to accept the idea of a decision maker with limited capacity and a non-optimizing behavior.5 This requires, in the first place, a thorough analysis of existing and emerging management control techniques in order to understand how managers use them and to which extent these methods contribute to decision facilitation. In a second step, existing instruments may be improved or adapted and new techniques may be developed.

You are not authenticated to view the full text of this chapter or article.

This site requires a subscription or purchase to access the full text of books or journals.

Do you have any questions? Contact us.

Or login to access all content.