Predicting enterprise efficiency: The impact of IT capability

Ludwig M K CHANG*, Ying Chu NG

*Corresponding author for this work

Research output: Chapter in book/report/conference proceedingConference contributionpeer-review

Abstract

Drawing from both the IS and economics perspectives, the present study shows that the quality management of IT matters to firm performance. It is the first attempt to evaluate firm efficiency by incorporating the effect of IT capability using a sample of small- and medium- sized enterprises in China and adopting the two-stage data envelopment analysis (DEA) approach. The efficiency of Chinese enterprises is estimated using DEA. The estimated efficiency score of the enterprises is then regressed on a set of variables in which measures of IT capability are the focus. The input-based DEA results indicated that about 35% of existing inputs were required to produce existing output had the enterprises been efficient. The Tobit results showed that the better IT competency of employees was, the more overall and pure technical efficient the enterprise was. Also, enterprises located in the coastal area were found to be less efficient while enterprises with smaller size operated with more scale efficient.

Original languageEnglish
Title of host publicationProceedings of the 45th Annual Hawaii International Conference on System Sciences, HICSS-45
PublisherIEEE Computer Society
Pages4545-4551
Number of pages7
ISBN (Print)9780769545257
DOIs
Publication statusPublished - 2012
Event2012 45th Hawaii International Conference on System Sciences, HICSS 2012 - Maui, HI, United States
Duration: 4 Jan 20127 Jan 2012

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
ISSN (Print)1530-1605

Conference

Conference2012 45th Hawaii International Conference on System Sciences, HICSS 2012
Country/TerritoryUnited States
CityMaui, HI
Period4/01/127/01/12

Scopus Subject Areas

  • Engineering(all)

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