Evaluating the operating efficiency of electronic market using a hybrid approach

Sophia Duan

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This paper aims to evaluate the operating efficiency of e-market for exploring the efficiency-oriented critical drivers on the development of e-market. A hybrid approach consisting of data envelopment analysis (DEA) and bootstrapped Tobit regression analysis is adopted. The efficiency of forty-three emarkets is investigated with respect to their respective overall efficiency, technical efficiency and scale efficiency, leading to the identification of the efficient e-market and the underlying source of inefficiency in the existing e-markets. The efficiency-oriented critical drivers for e-market are then investigated using bootstrapped Tobit regression analysis based on the outcome of the DEA analysis, resulted in the identification of four critical efficiency-based drivers including the head office location, the coverage, the mechanism, and the social media engagement. The study shows that the source of inefficiency in the e-market is due to the scale of production. It further reveals that an emarket is more efficient if it (a) is headquartered in the United State, (b) focuses on offering the products or services internationally, (c) has a fixed-price transaction mechanism, and (d) engages more in social media. The findings of this study help existing e-markets improve their efficiency by focusing on the efficiency-based critical drivers and provide new players in e-market with guidelines for developing their efficient e-markets.
Original languageEnglish
Title of host publicationPACIS 2015 Proceedings
Subtitle of host publicationIT and Open Innovation
Place of PublicationUnited States
PublisherAssociation for Information Systems
Number of pages13
Publication statusPublished - 2015
Event19th Pacific Asia Conference on Information Systems: PACIS 2015 - Marina Bay Sands, Singapore, Singapore
Duration: 05 Jul 201509 Jul 2015
http://pacis2015.comp.nus.edu.sg/ (Conference website)
http://aisel.aisnet.org/pacis2015/ (Conference proceedings)


Conference19th Pacific Asia Conference on Information Systems
Abbreviated titleIT and Open Innovation
OtherPACIS provides a forum for researchers and practitioners working on all aspects of Information Systems. The prime purpose of the PACIS is to enable regional and international Information Systems researchers and practitioners to meet in an annual forum that maximizes the opportunity for quality information exchange.
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