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ISSN : 2005-0461(Print)
ISSN : 2287-7975(Online)
Journal of Society of Korea Industrial and Systems Engineering Vol.41 No.2 pp.65-73

Design and Application of Two-Stage Performance Measurement System Considering Dynamic Capabilities

Sun-Man Kwon*, Chang Hee Han**
*School of Management Consulting, Hanyang University
**School of Business Administration, Hanyang University
Corresponding Author :


The dynamic capabilities of sensing market signals, creating new opportunities and reconfiguring resources and capabilities to new opportunities in a rapidly changing economic environment determines the competitiveness of the enterprise to create added value and survival. This study conceptualized a two-stage performance measurement framework based on the casual model of resource (input)-process-performance (output). We have developed a ‘Process capability index’ that reflect the dynamic capabilities factors as a key intermediary product linking resource inputs and performance outputs in enterprise performance measurement. The process capability index consists of four elements : manpower (level of human resource), operation productivity, structure and risk management. The DEA (Data Envelopment Analysis) model was applied to the developed performance indicators to analyze the branch office performance of a telecom company. Process capability efficiency (stage 1) uses resource inputs to reach a certain level of process capabilities. In performance result efficiency (stage 2), the process capabilities are used to generate sales revenues and subscribers. The two-stage DEA model derives intermediate output values that optimize the individual stages simultaneously. Some branch offices in the telecom company have focused on process capability efficiency or some other branch offices focused on performance result efficiency. Positioning map using two-stage efficiency decomposition and benchmarking can help identify the sources of inefficiencies and visualize strategic directions for performance optimization. Applications of two-stage DEA in conjunction with the case study that are meaningfully used in performance measurement areas have been scarce. In particular, this paper has the contribution to present a new performance measurement model considering the organization theory, the dynamic capabilities.

동태적 역량을 고려한 2단계 성과측정시스템 설계 및 적용

권순만*, 한창희**
*한양대학교 일반대학원 경영컨설팅학과
**한양대학교 경상대학 경영학부