Using Super-Efficiency Dea to Evaluate Financial Performance of E-Business Initiative in the Retail Industry

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.

Supporting Better Decision-Making: A Combined Grey Model and Data Envelopment Analysis for Efficiency Evaluation in E-Commerce Marketplaces

“…Some of the widely used methodologies to assess e-businesses' performance or related firms are summarized in Table 1. Typical key system measurements that are ranked or evaluated are financial performance [38], supply chain integration [39], website performance [40][41][42][43], cost efficiency [44,45], productivity effects [46][47][48], technical and technological efficiency [49][50][51][52][53][54][55], security [56], and success factors [57], to name just a few. In terms of methodologies, the potential and strengths of DEA in e-commerce performance evaluation are highlighted in many studies.…”

“…The CCR model identifies the overall inefficiency, while the BCC model differentiates between technical efficiency and scale efficiency, as discussed in [48,51,52,[58][59][60]. In order to discriminate the performance among efficient DMUs, a super slack-based measure (super SBM), based on the traditional DEA model, was applied in [38,54,55]. Developed by Tone [61], the super SBM model can not only obtain a complete ranking of effective DMUs but also eliminates the slack problem, further optimizes the shortcomings, and shows a more accurate metric.…”

A DEA-based comprehensive benchmarking approach for implementing continuous improvement

“…The statistical analysis of differences in mean efficiency across two groups is conducted using the Mann-Whitney rank sum test, while the analysis for three or more groups is conducted using the Kruskal-Wallis rank sum test (Chen et al, 2004). Table 6 reports the results of the Kruskal-Wallis rank tests to determine whether there are statistically significant differences in the efficiency levels depending on the CI implementation stage (introduction, proliferation, or stabilization) of the DMUs.…”

“…The statistical analysis of differences in mean efficiency across two groups is conducted using the Mann–Whitney rank sum test, while the analysis for three or more groups is conducted using the Kruskal–Wallis rank sum test (Chen et al. , 2004).…”

Evaluation of the Efficiency of Low Carbon Industrialization in Cultural and Natural Heritage: Taking Leshan as an Example

“…For an efficient year, its inputs can be increased in proportion but the efficient value won't be changed. The increased proportion is the super efficiency evaluation value(see Figure 2), so the larger the efficiency value of efficient year, the more efficient this year [38,39]. …”