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Analysis on pure e-commerce congestion effect, productivity effect and profitability in China

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  • Yang, Zhuofan
  • Shi, Yong
  • Yan, Hong

Abstract

This paper examines the relationship of e-commerce congestion effect, productivity effect and profit generation in China. The technique of Data Envelopment Analysis (DEA) is used to measure returns to scale and total factor productivity in e-commerce. The results show that e-commerce firms achieve productivity growth but suffer from input congestion. Congestion weakens profitability and leads to negative returns of inputs to outputs. This finding offers a new insight to explain the determinants of profit change. This research enriches production theory of internet companies, and helps managers strengthen their profitability by measuring the existence of congestion and eliminating input congestion resources.

Suggested Citation

  • Yang, Zhuofan & Shi, Yong & Yan, Hong, 2017. "Analysis on pure e-commerce congestion effect, productivity effect and profitability in China," Socio-Economic Planning Sciences, Elsevier, vol. 57(C), pages 35-49.
    • Handle: RePEc:eee:soceps:v:57:y:2017:i:c:p:35-49
    DOI: 10.1016/j.seps.2016.08.002
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    Cited by:

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    2. Kim, Hongbum & Ryu, Min Ho & Lee, Daeho & Kim, Jang Hyun, 2022. "Should a small-sized store have both online and offline channels? An efficiency analysis of the O2O platform strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    3. Han Yan & Min-Ju Song & Hee-Yong Lee, 2021. "A Systematic Review of Factors Affecting Food Loss and Waste and Sustainable Mitigation Strategies: A Logistics Service Providers’ Perspective," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    4. Alfonso Mendoza-Velázquez & Francisco Benita, 2019. "Efficiency, Productivity, and Congestion Performance: Analysis of the Automotive Cluster in Mexico," Journal of Industry, Competition and Trade, Springer, vol. 19(4), pages 661-678, December.
    5. Aparicio, Juan & Zofío, José L., 2023. "Decomposing profit change: Konüs, Bennet and Luenberger indicators," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    6. Zhu, Facang & Shi, Qiule & Balezentis, Tomas & Zhang, Chonghui, 2023. "The impact of e-commerce and R&D on firm-level production in China: Evidence from manufacturing sector," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 101-110.
    7. Mr. Tidiane Kinda, 2019. "E-commerce as a Potential New Engine for Growth in Asia," IMF Working Papers 2019/135, International Monetary Fund.

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