Predicting enterprise efficiency: The impact of IT capability

Ludwig M K CHANG; Ying Chu NG

doi:10.1109/HICSS.2012.481

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 proceeding › Conference proceeding › peer-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 language	English
Title of host publication	Proceedings of the 45th Annual Hawaii International Conference on System Sciences, HICSS-45
Publisher	IEEE Computer Society
Pages	4545-4551
Number of pages	7
ISBN (Print)	9780769545257
DOIs	https://doi.org/10.1109/HICSS.2012.481
Publication status	Published - 2012
Event	2012 45th Hawaii International Conference on System Sciences, HICSS 2012 - Maui, HI, United States Duration: 4 Jan 2012 → 7 Jan 2012

Publication series

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

Conference

Conference	2012 45th Hawaii International Conference on System Sciences, HICSS 2012
Country/Territory	United States
City	Maui, HI
Period	4/01/12 → 7/01/12

Scopus Subject Areas

General Engineering

Access to Document

10.1109/HICSS.2012.481

Cite this

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title = "Predicting enterprise efficiency: The impact of IT capability",

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.",

author = "CHANG, {Ludwig M K} and NG, {Ying Chu}",

year = "2012",

doi = "10.1109/HICSS.2012.481",

language = "English",

isbn = "9780769545257",

series = "Proceedings of the Annual Hawaii International Conference on System Sciences",

publisher = "IEEE Computer Society",

pages = "4545--4551",

booktitle = "Proceedings of the 45th Annual Hawaii International Conference on System Sciences, HICSS-45",

address = "United States",

}

CHANG, LMK & NG, YC 2012, Predicting enterprise efficiency: The impact of IT capability. in Proceedings of the 45th Annual Hawaii International Conference on System Sciences, HICSS-45., 6149444, Proceedings of the Annual Hawaii International Conference on System Sciences, IEEE Computer Society, pp. 4545-4551, 2012 45th Hawaii International Conference on System Sciences, HICSS 2012, Maui, HI, United States, 4/01/12. https://doi.org/10.1109/HICSS.2012.481

Predicting enterprise efficiency: The impact of IT capability. / CHANG, Ludwig M K; NG, Ying Chu.
Proceedings of the 45th Annual Hawaii International Conference on System Sciences, HICSS-45. IEEE Computer Society, 2012. p. 4545-4551 6149444 (Proceedings of the Annual Hawaii International Conference on System Sciences).

Research output: Chapter in book/report/conference proceeding › Conference proceeding › peer-review

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AB - 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.

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Predicting enterprise efficiency: The impact of IT capability

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