The Frontier of Performance

33 Pages Posted: 17 May 2006

See all articles by Timothy M. Devinney

Timothy M. Devinney

University of Manchester - Alliance Manchester Business School

Gerry Johnson

University of Strathclyde in Glasgow

George S. Yip

Imperial College London

Date Written: May 2006

Abstract

The measurement of performance is critical to nearly all managerial disciplines. Yet, we know little about the aggregation characteristics of the components of performance and how our notion of a "good performing firm" relates to what it is that we use as a dependent variable. In this paper, we propose an approach to thinking about the measurement of performance that uses the logic of frontier analysis. The approach is shown to be a reasonable representation of the multidimensional nature of performance and is shown to replicate, effectively, the components that we normally consider when discussing performance. This approach is shown to be superior to the simpler alternatives based on psychometric techniques.

Keywords: Performance, Frontier Analysis

JEL Classification: M00, M21, L10

Suggested Citation

Devinney, Timothy M. and Johnson, Gerry and Yip, George S., The Frontier of Performance (May 2006). Available at SSRN: https://ssrn.com/abstract=901865 or http://dx.doi.org/10.2139/ssrn.901865

Timothy M. Devinney (Contact Author)

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

Gerry Johnson

University of Strathclyde in Glasgow ( email )

16 Richmond Street
Glasgow 1XQ, Scotland G1 1XQ
United Kingdom

George S. Yip

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

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