Measuring the performance of Internet companies using a two-stage data envelopment analysis model

  • Authors:
  • Xiongfei Cao;Feng Yang

  • Affiliations:
  • USTC-CityU Joint Advanced Research Center, University of Science and Technology of China, City University of Hong Kong, Suzhou, China;School of Management, University of Science and Technology of China, Hefei, China

  • Venue:
  • Enterprise Information Systems
  • Year:
  • 2011

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Abstract

In exploring the business operation of Internet companies, few researchers have used data envelopment analysis (DEA) to evaluate their performance. Since the Internet companies have a two-stage production process: marketability and profitability, this study employs a relational two-stage DEA model to assess the efficiency of the 40 dot com firms. The results show that our model performs better in measuring efficiency, and is able to discriminate the causes of inefficiency, thus helping business management to be more effective through providing more guidance to business performance improvement.