Performance evaluation of teams in business simulation games with weight restricted data envelopment analysis models

Business simulation games are widely used in higher education, management training, and ex-ecutive management development programmes. The evaluation of the performance of partici-pants is generally subjective and is based on the trainer's perception of the importance of several evaluation criteria. In this paper, data envelopment analysis (DEA) is proposed for such evalua-tion. Input-oriented constant return-to-scale DEA models are used for evaluating the performance of teams participating in business simulation games. A car engine manufacturing game played by MBA master students is used to illustrate the proposed method. Weight restrictions are applied to obtain efficiency scores which can be used as an alternative to financial measures. The rela-tionship between the efficiency measure and the financial measure is statistically analysed. The main conclusion of the presented research is that if weight restriction parameters are properly set, DEA results can provide reliable and detailed information about participants' performance, about the shortcomings of decisions made during the games, and about possible ways to improve performance.

Automated summary

Business simulation games are widely used in higher education and management training, and the evaluation of participants' performance is often needed. In this study, data envelopment analysis (DEA) is proposed as a method to assess the performance of teams in business simulation games. By applying weight restrictions, efficiency scores that can be used as alternative financial measures are obtained. The research findings show that DEA results can provide reliable and detailed information about participants' performance and suggest possible ways to improve performance if the weight restriction parameters are properly set.