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

H Seol, H Lee, S Kim and Y Park ()
Additional contact information
H Seol: Korea Air Force Academy
H Lee: Seoul National University
S Kim: ETHZurich
Y Park: Seoul National University

Journal of the Operational Research Society, 2008, vol. 59, issue 2, 231-238

Abstract: 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.

Keywords: organizational efficiency; public service; priority of IT investment; data envelopment analysis; decision tree (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (11)

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DOI: 10.1057/palgrave.jors.2602453

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