Measuring the Consequences of Using Diverse Supplier Evaluation Teams: A Performance Frontier Perspective

Abstract

This article focuses on the postperformance evaluation of a supplier set by a buyer evaluation team. It explores the use of data envelopment analysis and the assurance region technique to measure the impact that conforming or disparate evaluation teams can have on the perception of supplier performance. As a result, this work makes the case for moving the notion of performance scorecards usage to the next level. For researchers the work demonstrates the case for dual accountability and the construction of performance frontiers motivated by an actual setting using many of the important dimensions discussed in the empirical literature. For managers, the work demonstrates one way of action-based decision making in performance management that recommends courses of action in the buyer–supplier interface. Several other practice-based interpretations for managers are also discussed.

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