Efficiency-Driven Enterprise Design

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Date
2016-06-01
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Publisher
Virginia Tech
Abstract

This dissertation explores the use of the efficiency performance measurement paradigm (EM), in terms of its concepts and applications, as an ex-ante mechanism to evaluate enterprise performance and inform enterprise design. The design of an enterprise is driven by decisions that include, but not limit to, which strategies to implement, how to allocate resources, how to shift operating patterns, and how to boost coordination among enterprises, among others. Up to date, EM has been mainly used as a descriptive mechanism, but the fundamental reason for measuring performance in an ex-post fashion, i.e., how well an enterprise does, is also valid in the context of design decisions, i.e., ex-ante evaluation. The contrast between the ex-post and ex-ante use of EM relates to the measurement purpose, i.e., why to measure. Ex-post measurement focuses on evaluating 'what happened' (non-disruptive) while ex-ante measurement emphasizes in informing design decisions exploring changes in current settings (more disruptive). Within this context and to achieve the purpose above, this dissertation is supported by theoretical insights and complemented with three empirical studies. The theoretical insights relate to facts that support, connect to, and challenge (i.e., facilitate or impede) the ex-ante use of EM for enterprise evaluation and informing enterprise design. Those insights are based on the efficiency performance measurement, organizational design and enterprise systems engineering literature. Meanwhile, the three empirical studies situate the application of EM as an ex-ante mechanism to inform evacuation management, bank branch management, and power plants. The theoretical and empirical results indicate that EM is well suited for both evaluating enterprise performance and informing design decisions. The main contribution of this dissertation to enterprise stakeholders is that EM can be not only used to answer how well the enterprise did, but also how well it could do if certain design decisions are taken.

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Keywords
Efficiency performance measurement, enterprise design, organizational design, data envelopment analysis
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