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Using Super-Efficiency Dea To Evaluate Financial Performance Of E-Business Initiative In The Retail Industry

Author

Listed:
  • YAO CHEN

    (College of Management, University of Massachusetts, Lowell, MA 01845, USA)

  • LUVAI MOTIWALLA

    (College of Management, University of Massachusetts, Lowell, MA 01845, USA)

  • M. RIAZ KHAN

    (College of Management, University of Massachusetts, Lowell, MA 01845, USA)

Abstract

Electronic Business (EB) on the Internet is an attractive technology for traditional business organizations to improve their financial performance. The Web-based economic model is supposedly more efficient at the transaction cost level. It also provides cost-effective marketing, global market access, and a disintermediation of costly distribution channels. The current paper uses super-efficiency data envelopment analysis (DEA) model to evaluate the financial performance of e-business initiatives in the retail industry. Because of the possible infeasibility of the super-efficiency DEA model, the use of super-efficiency DEA model has been restricted. This paper demonstrates that if super-efficiency is interpreted as input saving or output surplus achieved by a specific efficient DMU, infeasibility does not necessary indicate the best performance. A new approach is applied to correctly characterize and rank the performance of a set of EB companies and non-EB companies in the retail industry. This analysis indicates that the EB companies perform better in some areas than their non-EB counterpart.

Suggested Citation

  • Yao Chen & Luvai Motiwalla & M. Riaz Khan, 2004. "Using Super-Efficiency Dea To Evaluate Financial Performance Of E-Business Initiative In The Retail Industry," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 337-351.
  • Handle: RePEc:wsi:ijitdm:v:03:y:2004:i:02:n:s0219622004001045
    DOI: 10.1142/S0219622004001045
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    Citations

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    Cited by:

    1. Liming Yao & Jiuping Xu & Yifan Li, 2014. "Evaluation of the Efficiency of Low Carbon Industrialization in Cultural and Natural Heritage: Taking Leshan as an Example," Sustainability, MDPI, vol. 6(6), pages 1-18, June.
    2. Carlo Alberto Magni & Stefano Malagoli & Giovanni Mastroleo, 2006. "An Alternative Approach To Firms' Evaluation: Expert Systems And Fuzzy Logic," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 195-225.
    3. Chen, Nengcheng & Xu, Lei & Chen, Zeqiang, 2017. "Environmental efficiency analysis of the Yangtze River Economic Zone using super efficiency data envelopment analysis (SEDEA) and tobit models," Energy, Elsevier, vol. 134(C), pages 659-671.
    4. Chia-Nan Wang & Thanh-Tuan Dang & Ngoc-Ai-Thy Nguyen & Thi-Thu-Hong Le, 2020. "Supporting Better Decision-Making: A Combined Grey Model and Data Envelopment Analysis for Efficiency Evaluation in E-Commerce Marketplaces," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
    5. Liu, Haiyue & Zhang, Ruchuan & Zhou, Li & Li, Aijun, 2023. "Evaluating the financial performance of companies from the perspective of fund procurement and application: New strategy cross efficiency network data envelopment analysis models," Energy, Elsevier, vol. 269(C).
    6. Magni, Carlo Alberto, 2004. "Rating and ranking firms with fuzzy expert systems: the case of Camuzzi," MPRA Paper 5889, University Library of Munich, Germany.
    7. Farzaneh Asadi & Sohrab Kordrostami & Alireza Amirteimoori & Morteza Bazrafshan, 2023. "Inverse data envelopment analysis without convexity: double frontiers," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 46(1), pages 335-354, June.

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