Journal ArticleDOI
Measuring Information Technology's Indirect Impact on Firm Performance
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TLDR
An efficiency model is developed that identifies the efficient frontier of a two-stage production process linked by intermediate measures and is used to characterize the indirect impact of IT on firm performance and highlight those firms that can be further analyzed for best practice benchmarking.Abstract:
It has been recognized that the link between information technology (IT) investment and firm performance is indirect due to the effect of mediating and moderating variables. For example, in the banking industry, the IT-value added activity helps to effectively generate funds from the customer in the forms of deposits. Profits then are generated by using deposits as a source of investment funds. Traditional efficiency models, such as data envelopment analysis (DEA), can only measure the efficiency of one specific stage when a two-stage production process is present. We develop an efficiency model that identifies the efficient frontier of a two-stage production process linked by intermediate measures. A set of firms in the banking industry is used to illustrate how the new model can be utilized to (i) characterize the indirect impact of IT on firm performance, (ii) identify the efficient frontier of two principal value-added stages related to IT investment and profit generation, and (iii) highlight those firms that can be further analyzed for best practice benchmarking.read more
Citations
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Journal ArticleDOI
Data envelopment analysis (DEA) - Thirty years on
Wade D. Cook,Lawrence M. Seiford +1 more
TL;DR: A sketch of some of the major research thrusts in data envelopment analysis (DEA) over the three decades since the appearance of the seminal work of Charnes et al. is provided.
Journal ArticleDOI
Efficiency decomposition in two-stage data envelopment analysis: an application to non-life insurance companies in taiwan
Chiang Kao,Shiuh-Nan Hwang +1 more
TL;DR: The relational model developed in this paper is more reliable in measuring the efficiencies and consequently is capable of identifying the causes of inefficiency more accurately.
Book ChapterDOI
Data Envelopment Analysis: History, Models, and Interpretations
TL;DR: This chapter discusses the basic DEA models and some of their extensions, which have been successfully applied to a host of many different types of entities engaged in a wide variety of activities in many contexts worldwide.
Journal ArticleDOI
Additive efficiency decomposition in two-stage DEA
TL;DR: The current paper develops an additive efficiency decomposition approach wherein the overall efficiency is expressed as a (weighted) sum of the efficiencies of the individual stages and can be applied under both CRS and variable returns to scale (VRS) assumptions.
Journal ArticleDOI
Data envelopment analysis 1978-2010: A citation-based literature survey
TL;DR: The five most active DEA subareas in recent years are identified; among them the “two-stage contextual factor evaluation framework” is relatively more active.
References
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Journal ArticleDOI
Measuring the efficiency of decision making units
TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
Journal ArticleDOI
Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis
TL;DR: The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs as mentioned in this paper.
Book
"Data Envelopment Analysis: Theory, Methodology, and Applications"
TL;DR: In this article, the authors present DEA Software Packages for the U.S. Airline Industry and present a Spatial Efficiency Framework for the Support of Locational Decision (SELF).
Journal ArticleDOI
The productivity paradox of information technology
TL;DR: The increased interest in the «productivity paradox,» as it has become known, has engendered a significant amount of research, but thus far, this has only deepened the mystery.
Journal ArticleDOI
Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence
TL;DR: In this article, the authors investigate the hypothesis that the combination of three related innovations (i.e., information technology, complementary workplace reorganization, and new products and services) constitute a significant skill-biased technical change affecting labor demand in the United States.
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