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Measuring dot com efficiency using a combined DEA and GRA approach

  • Theoretical Paper
  • Published:
Journal of the Operational Research Society

Abstract

This paper adopts two mathematical approaches, data envelopment analysis (DEA) and grey relation analysis (GRA) to measure DEA efficiency using the sample of 69 listed US internet companies. A total of 40 indicators were initially selected for the efficiency evaluation, with 21 related to DEA-input indicators and 19 to DEA-output indicators. Eight representative indicators selected using GRA are subsequently used as the input and output indicators in the DEA analysis. The empirical result also shows that 10 out of 69 dot com firms are CCR-efficient in DEA Efficiency.

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Notes

  1. The threshold of 0.75 appears arbitrary. This is a problem of pragmatic character, which is not easily resolved on theoretical ground. It is similar to using 60 marks to pass students in examinations, for example.

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Authors and Affiliations

  1. National Chung Hsing University, Taichung City, Taiwan

    C-T Bruce Ho

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  1. C-T Bruce Ho
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Correspondence to C-T Bruce Ho.

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Bruce Ho, CT. Measuring dot com efficiency using a combined DEA and GRA approach. J Oper Res Soc 62, 776–783 (2011). https://doi.org/10.1057/jors.2010.3

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  • DOI: https://doi.org/10.1057/jors.2010.3

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