The impact of information technology on organizational efficiency in public services: a DEA-based DT approach

Abstract

This study attempts to examine the impact of information technology (IT) on organizational efficiency in public services. We propose a new approach to providing the directions of IT investments to improve organizational efficiency. The proposed approach is based on the integrated form of data envelopment analysis (DEA) and decision tree (DT), and composed of two steps. First, DEA is conducted to measure organizational efficiency with the selected inputs and outputs. Second, DT is built based on efficiency scores obtained from DEA and IT factors, as a target variable and predictor variables, respectively. In doing so, we can identify the relative impact of IT investments on organizational efficiency and set priorities to the IT investments to improve efficiency from a view point of each organization. A case study on the Korean local governments is presented to illustrate the usefulness of the proposed approach.

Local governments' efficiency: a systematic literature review—part I

“…Seol et al. () analyzed 106 local governments in 2003, while Sung () assessed 222 local governments from 1999 to 2001. Both studies examined the impact of information technology on Korean local government performance.…”

“…r Waste collection (32 papers) 28 Seol et al (2008). 29 Sung (2007), Barone andMocetti (2011), Cordero et al (2016).…”

“…Total expenditures Kalseth and Rattsø (1995), Kerstens (1996a, 1996b), Prieto and Zofio (2001), Afonso and Fernandes (2003), Coffé and Geys (2005), Afonso and Fernandes (2006), Sung (2007), Afonso and Fernandes (2008), Seol et al (2008), Nijkamp andSuzuki (2009), Balaguer-Coll et al (2010b), Kutlar and Bakirci (2012), Nakazawa (2013Nakazawa ( , 2014, Ashworth et al (2014), Pevcin (2014aPevcin ( , 2014b, Mahabir (2014), Yusfany (2015), Andrews and Entwistle (2015), Asatryan and De Witte (2015), Lampe et al (2015), Cordero et al (2016)…”

“…,Seol et al (2008),Nijkamp andSuzuki (2009), Cordero et al (2016).C 2017 The Authors. International Transactions in Operational Research published by John Wiley & Sons Ltd on behalf of International Federation of Operational Research Societies 440…”

Untitled

“…Although there are a lot of studies done on the impact of IT on productivity and efficiency, there are few studies about IT influence on the efficiency of non-commercial sectors such as public institutions. Also, research on IT in public sectors has mainly focused on why IT is introduced and how e-government is implemented [17]. Brynjolfsson [18] points out that between 1970 and 1990 delivered computing power in the U.S. economy increased by more than two orders of magnitude, yet productivity, especially in the service sector, seems to have stagnated.…”