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 executive management development programmes. The evaluation of the performance of participants 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 evaluation. 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 relationship 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. •A novel method for complex evaluation of business simulation games is provided.•Performance of students in business simulation is evaluated with DEA.•All evaluation criteria of a business simulation game are aggregate in one overall score.•The application area of data envelopment analysis is extended for simulation games.