Comparative Performance Evaluation Under Uncertainty
European Journal of Operational Research, Vol. 150, November 2003
Posted: 13 Oct 2003
In this article we propose a multidimensional framework for comparative performance evaluation. The framework, CCPR, is elaborated and illustrated through a real-life case. The approach is that it takes account of and corrects for the influence of risks, which are beyond the control of the decision maker. Risk is viewed as a multidimensional measure and it is described in terms of sensitivities to unexpected changes of a multiplicity of risk factors. In addition, the approach corrects for differences in characteristics between the firms that are being compared. Some characteristics are fixed and thus beyond the control of the decision maker. Others may be changed and controlled by the decision maker. The approach also answers whether changes in firm characteristics as made by management have been appropriate or not.
Note: This is a description of the paper and not the actual abstract.
Keywords: Multifactor method, Interfirm comparison, Performance evaluation
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