Determining the efficiency-orientated critical drivers for e-market using data envelopment analysis

Sophia Duan, Hepu Deng, Brian Corbitt

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    Abstract

    This paper identifies the efficiency-oriented critical drivers for e-market using a two-stage approach. The efficiency of twenty-six e-markets is investigated first with respect to their respective overallefficiency, technical efficiency and scale efficiency, leading to the identification of the fully efficient emarkets and the underlying source of inefficiency in the existing e-markets. The efficiency-orientedcritical drivers for e-market are then investigated using Tobit regression analysis based on the outcome of the analysis in the first stage, resulted in the identification of five critical efficiency-baseddrivers including head office location, coverage, revenue model, mechanism and language. The study shows that the source of inefficiency in the e-market is due to the scale of production. It furtherreveals that an e-market is more efficient if it (a) is US based, (b) focuses on offering the products or services internationally, (c) adopts a single type of revenue model, (d) focuses on an auctiontransaction mechanism and (e) provides a single language service. The findings of this study help existing e-markets improve their efficiency by focusing on the efficiency-based critical drivers andprovide new players in e-market with guideline for developing efficient e-markets.
    Original languageEnglish
    Title of host publicationPACIS 2011 Proceedings
    Subtitle of host publicationQuality Research in Pacific Asia
    Place of PublicationAustralia
    PublisherQueensland University of Technology
    Pages1-12
    Number of pages12
    ISBN (Electronic)9781864356441
    Publication statusPublished - 2011
    Event15th Pacific Asia Conference on Information Systems: PACIS 2011 - Queensland University of Technology, Brisbane, Australia
    Duration: 07 Jul 201111 Jul 2011
    https://aisel.aisnet.org/pacis2011/ (Conference proceedings)

    Conference

    Conference15th Pacific Asia Conference on Information Systems
    Abbreviated titleQuality Research in Pacific Asia
    Country/TerritoryAustralia
    CityBrisbane
    Period07/07/1111/07/11
    OtherThe Pacific Asia Conference on Information Systems (PACIS) is the main annual international Information Systems (IS) conference and the only AIS-sponsored conference in the Pacific Asia Region. In 2011, the 15th PACIS was run at Queensland University of Technology (QUT) in Brisbane, Australia, from 7-11 July 2011. The conference was organized jointly by QUT and The University of Queensland.
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