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2013 (Vol. 5, Issue: 11)
Article Information:

Does Excess Capacity Occur in Chinese Software Industry? An Integrated DEA Approach and its Statistical Tests

Malin Song, Jun Peng and Qingxian An
Corresponding Author:  Malin Song 

Key words:  Data envelopment analysis, excess capacity, operational efficiency, SABCB method, software industry, ,
Vol. 5 , (11): 3152-3158
Submitted Accepted Published
September 28, 2012 November 23, 2012 April 05, 2013

This study proposes a new integrated Data Envelopment Analysis (DEA) approach for performance evaluation. Based on economic data of listed companies of software industry in Shanghai and Shenzhen Stock Exchanges, this study first establishes an index system which reflects the status of capacity and operational efficiency. Then, integrated DEA models as well as Synthetic Average method, Borda method, Copeland method and fuzzy Borda method (SABCB Method) are used to calculate the operational efficiency and status of returns to scale. The empirical analysis concludes: (1) in general, operational efficiency of Chinese software industry is acceptable; (2) input redundancy and output shortage occur in the majority of companies. Some companies have been in the region of decreasing or constant returns to scale and excess capacity could now be observed; (3) improving capability of independent innovations continuously and transforming existing business processes are a pressing task for many software companies who want to take the international financial crisis as opportunities.
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  Cite this Reference:
Malin Song, Jun Peng and Qingxian An, 2013. Does Excess Capacity Occur in Chinese Software Industry? An Integrated DEA Approach and its Statistical Tests.  Research Journal of Applied Sciences, Engineering and Technology, 5(11): 3152-3158.
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ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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