Supplier post performance evaluation: the effects of buyer preference weight variance

Abstract

We use empirical post performance data of suppliers and buyers to demonstrate that degrees of variability of buyer evaluation team weight preferences can have varying effects on the perception of supplier performance attributes. We first justify then use data envelopment analysis (DEA) as a research tool to integrate buyer performance and buyer weight preferences with supplier performance and then use the results of the dyadic DEA evaluation model to analyse three propositions. This integration is essential to a dyadic approach. Results indicate that buyer preference weights on supplier performance attributes influence the perception of supplier performance sometimes in unexpected ways dependent on the degree of conformity versus disparity in the factor weights that was put into operation using assurance regions. As a result, buyer performance factors and preferences must be measured and their effects understood before post performance supplier evaluation is completed and other components of a relationship management plan are implemented.

Keywords:

• buyer–supplier dyads
• performance evaluation
• relationships
• DEA