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The impact of information technology on organizational efficiency in public services: a DEA-based DT approach

Author

Listed:
  • H Seol

    (Korea Air Force Academy)

  • H Lee

    (Seoul National University)

  • S Kim

    (ETHZurich)

  • Y Park

    (Seoul National University)

Abstract

This study attempts to examine the impact of information technology (IT) on organizational efficiency in public services. We propose a new approach to providing the directions of IT investments to improve organizational efficiency. The proposed approach is based on the integrated form of data envelopment analysis (DEA) and decision tree (DT), and composed of two steps. First, DEA is conducted to measure organizational efficiency with the selected inputs and outputs. Second, DT is built based on efficiency scores obtained from DEA and IT factors, as a target variable and predictor variables, respectively. In doing so, we can identify the relative impact of IT investments on organizational efficiency and set priorities to the IT investments to improve efficiency from a view point of each organization. A case study on the Korean local governments is presented to illustrate the usefulness of the proposed approach.

Suggested Citation

  • H Seol & H Lee & S Kim & Y Park, 2008. "The impact of information technology on organizational efficiency in public services: a DEA-based DT approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(2), pages 231-238, February.
    • Handle: RePEc:pal:jorsoc:v:59:y:2008:i:2:d:10.1057_palgrave.jors.2602453
    DOI: 10.1057/palgrave.jors.2602453
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    Cited by:

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    2. Pengzhen Yin & Min Yang & Ranran Yang, 2020. "Investigating the Effects of IT Capability on Hotel Performance Based on DEA Approach: An Empirical Example of International Hotels in Hong Kong," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    3. Isabel Narbón-Perpiñá & Kristof De Witte, 2016. "Local governments’ efficiency: A systematic literature review – Part II," Working Papers 2016/21, Economics Department, Universitat Jaume I, Castellón (Spain).
    4. Francesco Aiello & Graziella Bonanno & Luigi Capristo, 2017. "Explaining Differences In Efficiency: The Case Of Local Government Literature," Working Papers 201704, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    5. Gunasekaran, Angappa & Subramanian, Nachiappan & Papadopoulos, Thanos, 2017. "Information technology for competitive advantage within logistics and supply chains: A review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 14-33.
    6. Santos, Sérgio P. & Belton, Valerie & Howick, Susan & Pilkington, Martin, 2018. "Measuring organisational performance using a mix of OR methods," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 18-30.
    7. Francesco Aiello & Graziella Bonanno, 2019. "Explaining Differences In Efficiency: A Meta‐Study On Local Government Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 999-1027, July.
    8. Bošković Aleksandra & Krstić Ana, 2020. "The Combined Use of Balanced Scorecard and Data Envelopment Analysis in the Banking Industry," Business Systems Research, Sciendo, vol. 11(1), pages 4-15, March.
    9. Aggelopoulos, Eleftherios & Georgopoulos, Antonios, 2017. "Bank branch efficiency under environmental change: A bootstrap DEA on monthly profit and loss accounting statements of Greek retail branches," European Journal of Operational Research, Elsevier, vol. 261(3), pages 1170-1188.
    10. Thien-Vu Tran & Hosomi Shoichiro & Masayoshi Noguchi, 2023. "Inter-Jurisdictional Comparison of Public Asset Utilization in Tokyo Metropolitan Local Governments," Public Organization Review, Springer, vol. 23(1), pages 197-218, March.

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