Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLS
This study uses an integrated balanced scorecard-based Additive-DEA framework to identify proxy variables for the inputs and outputs for a sample of firms in India’s information technology and information technology-enabled services sector to identify and analyse these firms’ inefficiencies. The add...
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| Format: | Article |
| Language: | English |
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Ala-Too International University
2024-11-01
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| Series: | Eurasian Journal of Business and Economics |
| Subjects: | |
| Online Access: | https://ejbe.org/EJBE2024Vol17No34p065-MUKHERJEE-AJAZ-PRAKASHGHOSH.pdf |
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| author | Santanu MUKHERJEE Taufeeq AJAZ Triptendu Prakash GHOSH |
| author_facet | Santanu MUKHERJEE Taufeeq AJAZ Triptendu Prakash GHOSH |
| author_sort | Santanu MUKHERJEE |
| collection | DOAJ |
| description | This study uses an integrated balanced scorecard-based Additive-DEA framework to identify proxy variables for the inputs and outputs for a sample of firms in India’s information technology and information technology-enabled services sector to identify and analyse these firms’ inefficiencies. The additive-DEA model is used because it is invariant to data translation, in addition to being non-radial and nonoriented, and hence can deal with negative values of variables that are critical to analyse in(efficiency). This is the first such study in the Indian context that focuses on dealing with negative values for earnings as one of the output variables. The results show that high-performing firms, as calculated by the Additive-DEA method, have higher financial gains in terms of revenue, earnings, and return on equity. Further, the study also attempts to explain the factors influencing the firms’ performance using a regression framework for which a generalised two-stage least square method is used. The regression results show that firm characteristics like age, industry specialisation, and business type have no influence on firm performance, while factors like exports, exchange rate changes, and market focus impact its performance. These results have critical policy implications for this sector to reduce inefficiency by controlling costs and increasing spending on research and development. |
| format | Article |
| id | doaj-art-d1e0a932afa94e74beb8de302c75884d |
| institution | Kabale University |
| issn | 1694-5948 1694-5972 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | Ala-Too International University |
| record_format | Article |
| series | Eurasian Journal of Business and Economics |
| spelling | doaj-art-d1e0a932afa94e74beb8de302c75884d2025-01-17T10:23:59ZengAla-Too International UniversityEurasian Journal of Business and Economics1694-59481694-59722024-11-0117346598https://doi.org/10.17015/ejbe.2024.034.04Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLSSantanu MUKHERJEE0https://orcid.org/0000-0002-1907-6983Taufeeq AJAZ1https://orcid.org/0000-0001-5286-7755Triptendu Prakash GHOSH2https://orcid.org/0000-0002-1248-4490Indian Institute of Foreign TradeIndian Institute of Foreign TradeIndian Institute of Foreign TradeThis study uses an integrated balanced scorecard-based Additive-DEA framework to identify proxy variables for the inputs and outputs for a sample of firms in India’s information technology and information technology-enabled services sector to identify and analyse these firms’ inefficiencies. The additive-DEA model is used because it is invariant to data translation, in addition to being non-radial and nonoriented, and hence can deal with negative values of variables that are critical to analyse in(efficiency). This is the first such study in the Indian context that focuses on dealing with negative values for earnings as one of the output variables. The results show that high-performing firms, as calculated by the Additive-DEA method, have higher financial gains in terms of revenue, earnings, and return on equity. Further, the study also attempts to explain the factors influencing the firms’ performance using a regression framework for which a generalised two-stage least square method is used. The regression results show that firm characteristics like age, industry specialisation, and business type have no influence on firm performance, while factors like exports, exchange rate changes, and market focus impact its performance. These results have critical policy implications for this sector to reduce inefficiency by controlling costs and increasing spending on research and development.https://ejbe.org/EJBE2024Vol17No34p065-MUKHERJEE-AJAZ-PRAKASHGHOSH.pdfadditive-deabsc-deait&itesindiaefficiency |
| spellingShingle | Santanu MUKHERJEE Taufeeq AJAZ Triptendu Prakash GHOSH Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLS Eurasian Journal of Business and Economics additive-dea bsc-dea it&ites india efficiency |
| title | Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLS |
| title_full | Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLS |
| title_fullStr | Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLS |
| title_full_unstemmed | Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLS |
| title_short | Performance Analysis of the Indian IT & ITeS Sector: An Application of Additive-DEA and G2SLS |
| title_sort | performance analysis of the indian it ites sector an application of additive dea and g2sls |
| topic | additive-dea bsc-dea it&ites india efficiency |
| url | https://ejbe.org/EJBE2024Vol17No34p065-MUKHERJEE-AJAZ-PRAKASHGHOSH.pdf |
| work_keys_str_mv | AT santanumukherjee performanceanalysisoftheindianititessectoranapplicationofadditivedeaandg2sls AT taufeeqajaz performanceanalysisoftheindianititessectoranapplicationofadditivedeaandg2sls AT triptenduprakashghosh performanceanalysisoftheindianititessectoranapplicationofadditivedeaandg2sls |