Efficiency of IT Resources in Developing e-Commerce Infrastructures: Using DEA Approach in Selected Developing Countries

There are two main parametric and nonparametric methods in the literature to measure efficiency. In this paper, nonparametric approach is used to examine e-Commerce efficiency in selected developing countries. Since the output variables included in the model are correlated, principal component analysis is considered and then cross DEA is employed to rank e-Commerce efficiency of developing countries.The results indicate that under the fixed outcome to scale assumption, the most e-Commerce efficient countries are Egypt, Nigeria, Pakistan, Kazakhstan, Vietnam, Algeria, Indonesia and Azerbaijan. The average efficiency score is 43.8 percent. Under the variable outcome to scale assumption, some other countries such as Estonia, India, China, Russia, Ukraine and Iran are also ranked as the most efficient countries and the average efficiency is 63.9 percent. Moreover, using the Cross DEA approach, Indonesia and Vietnam are ranked as the most efficient countries among all selected countries.