Contents 1 Performance Issues in the Global Knowledge Economy: The Need for an Extended Framework for Enterprises

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1 1 Performance Issues in the Global Knowledge Economy: The Need for an Extended Framework for Enterprises Introduction Background: Globalization and the Global Knowledge Economy The Behaviour of Management and the Role of Companies in Society The Supply Chain Imperative Organizational Performance Management and Measurement The Elements of Performance Measures of Performance Data Envelopment Analysis Background to the Australian Case Study Objectives Methodology Contribution of this Book Limitations of Existing Literature A New Approach-Overcoming the Limitations Structure of the Book Critical Literature Review: The Roles of Organization Behaviour, Corporate Governance and Supply Chain Management in the Measurement of Performance for Commercial Enterprises in a Global Knowledge Economy Introduction: Issues and Developments in Contemporary Global Knowledge Economics and Business The Emergence of a Global Knowledge Economy Globalization of Australian Business xvii

2 xviii Competition for Australian Business in a Global Economy The Emergence of Global Knowledge as Capital The Emergence of an OSTS Approach to OB Introduction The Founding Fathers; Weber, Durkheim and Pareto The Human Relations School and the Tavistock Institute Systems Theory Open Socio-Technical Systems The Corporate Governance and Social Responsibility Approach to Organization Performance Strategy Introduction The Current Corporate Governance Forum Ethics and Morality in Business The SCM Approach to Organization Performance Introduction The Measurement of Organization Performance Introduction DEA and the Measurement of Efficiency Introduction: Background and Brief History of the Model Recent Research and Model Development Conclusion Conceptual Framework and Research Methodology: A New Approach to PM Introduction Conceptual Framework for PM The OBPM Model Research Study Postulates The Optimization Model of Business Using DEA Stages of an Applied Operations Research Study The Procedure for DEA Application Linear Programming and DEA Linear Programming Linear Programming for DEA Mathematical Programming with Spreadsheets Alternative Methodologies for Measuring Efficiency Ratio Analysis and Efficiency Evaluation with Multiple Input and Multiple Output The Pure Programming Approach Regression Analysis with Multi Inputs and Outputs... 71

3 xix The Deterministic Statistical Frontier Approach The Stochastic Frontier Approach Other Related Mathematical Models Research Data for this Study The Data Source The DEA Data Validating the DEA Model Conclusion DEA: Theory, Methods and Applications Introduction The Basic Model DEA for One Output and Two Inputs DEA for Two Outputs and One Input Extensions to the Base Model Technical and Allocative Efficiencies: Input and Output Orientations Slack Returns to Scale Weighting the DMUs Setting the DMU Weights DEA: Assumptions, Strengths and Limitations Assumptions and Precautions of DEA Strengths and Advantages of DEA Weaknesses and Limitations of DEA Other Models and Issues Other Models Other Issues Conclusion DEA of Corporate Governance: The Model and Its Application Introduction Corporate Social Responsibility Stakeholder Engagement Ethical Business Behaviour Accountability Value Attuned Public Relations Dialogue The DEA of Corporate Social Responsibility The CSR Database The Black CSR Model DEA Justification

4 xx 5.4 Applying DEA Pilot Tests and Variable Selection The DEA-Solver-LV Program Test Trials of Data using DEA-Solver-LV DEA of CSR Using DEA-Solver-Pro Trial 1 Full Cohort Test with Six Inputs, One Output Across All Business Units Trial 2 Full Cohort Test for All Business Units Tested Individually and Aggregated Trial 3 CSRMC Expanded to Eight Output Variables Conclusion: The DEA for CG Results and Validation of DEA Application to Corporate Social Responsibility Introduction The DEA Application to CSR in the OSTS The Findings of DEA Application to CSR The Findings of DEA in the OSTS Technical Considerations of the Findings Heuristics for DEA to Succeed: The Rules of Thumb Different DEA Models The Extreme Point Technique of DEA The Aggregation and De-Aggregation Impact The Quantification of Qualitative Data Explaining Efficiency Versus Describing Efficiency The Effect of Input Congestion and Exogenous Factors Efficiency Versus Productivity The CSR Construct Correlations for Trial Correlations for Trial Correlations for Trial Correlation Summaries for all Trials Conclusion Implications for OBPM, SCM and Organization Design Introduction Implications of the Results The Need for Further Development Strategy for Organization Design of the Future Integrating the PMS into the OSTS Designed Enterprise Integrating the Supply Network into the OSTS Designed Enterprise Integrating CG into the OSTS Designed Enterprise Conclusion

5 xxi 8 Summary, Conclusion and Future Research Introduction Foundations in a Global Knowledge Economy Critical Review of the Literature A New Approach to PM The Conceptual Framework for the Measurement Methodology DEA DEACSR Model and Results DEA for CG The DEACSR Model Performance Measurement and Organization Behaviour Limitations and Areas for Further Research Limitations of the Present Research Implications and Direction for Future Research Conclusion Appendices Appendix A Definitions of Key Terms Appendix B Spreadsheet Modeling of DEA in Linear Programming Appendix C Summary of Business Units Average Scores Appendix D All Business Units-Reversed Appendix E Sample with 48 DMUs Appendix F Min Ave Max Scores Appendix G Service History of More than Five years Appendix H Trial Appendix I Trial Appendix J Trial Appendix K The Balanced Scorecard of Kaplan and Norton (1992) Appendix L The Performance Prism of Cranfield University Appendix M The Construct of CSR Management Capacity Bibliography

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