Empirical Analysis on IT Investments Efficiency and Influence Factors of Equipment Manufacturing Industry Based on DEA-CART Model

Abstract:

For explicating the underlying linking mechanism between IT investment and firm performance, this paper develops a framework to examine the influence factors of IT payoff efficiency. From a process-oriented perspective, the study measured the IT investment efficiency using continuous data from 485 Chinese enterprises in 2006-2008. The result shows that only 11.03% of total samples are effective based on data envelopment analysis(DEA). So it suggests that a majority of firms can achieve differential performance over competitors by improving the organization’s capacity to absorb IT. And then some main factors that affect technical efficiency were identified using classification and regression trees(CART) method. The results indicate the influence factors including enterprises’ scale, strategic IT planning and density of trade’s fund. The interaction of information system application and training density positive influences IT investment efficiency. Possibility for future research can keep on in these areas.

• Periodical: Applied Mechanics and Materials (Volume 197)
• Pages: 638-642
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.197.638
• Online since: September 2012
• Authors: Ming Yan Hu, Wei Guo, Nan Zhao, Lei Wang
• Keywords: CART, Equipment Manufacturing, IT Investment, Super-Efficiency DEA Model

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