Abstract

This paper measures the operational efficiency of domestic onli ne game companies and analyze its trends and pat-terns by using data envelopment analysis (DEA). DEA is a non-pa rametric approach to measuring the relative efficiency of decision-making units (DMUs) with multiple inputs and output s. 14 online game companies are selected as DMUs and three inputs (number of employees, capital and asset) and t hree outputs (sales, operating profit and net profit) are selected as DEA variables. First, the output-oriented BCC m odel and super-efficiency model are employed to meas-ure the static operational efficiency of the online game compan ies from 2003 to 2012. We also conduct the dynamic analysis with DEA window model to capture the trends of their o perational efficiency influenced by internal and external environmental changes. The results are expected to provide frui tful implications for strategic decision making of online game companies and policy making for the online game industry.

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