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A non-parametric algorithm for computing information technology induced productivity in the construction value chain
, Kassim Y., Underwood J.
Published in Nottingham
Several studies have suggested that information technology (IT) resources offer strategic advantage to organisations and enhance their competitiveness. However, none of the studies have been able to define precisely a model for measuring information technology business value. Furthermore, attempts to quantify IT business value have led to inconsistencies and paradoxes. Some of these problems are attributed to the lack of theoretically structured framework in the previous studies. This paper presents a methodology for evaluating IT business value in the construction industry by adopting three paradigms of process-based, microeconomics-based, and resource-based views as the theoretical framework to model the relationship between IT and the performance of engineering and construction firms. The ITBV is modelled using a non-parametric technique known as data envelopment analysis (DEA). DEA identifies the surface that represents the most efficient data points in terms of maximum output produced using minimum input. For the purpose of this study, the output variables are parameters that measure the performance of a firm, while the input variables measure the level of usage of IT resources. An algorithm for evaluating the efficiency of engineering and construction processes is developed using DEA and illustrated through the use of an empirical example. The paper eliminates the problems associated with parametric approach to evaluating ITBV and provides a comprehensive theoretical framework in modelling the ITBV. © 2018 Esprit. All rights reserved.
About the journal
JournalEG-ICE 2010 - 17th International Workshop on Intelligent Computing in Engineering
Open AccessNo