DEA-PCA Evaluation Of The Operational Performance Of Chinese Internet Companies

The Internet industry plays a more and more important role in the national economy and people's life.Taking Internet listed enterprises as samples,this paper makes a comprehensive evaluation of the operation efficiency of Chinese Internet enterprises with the organic combination of data envelope-analysis(DEA)and principal component analysis(PCA),and analyzes the factors affecting the comprehensive efficiency,so as to put forward policy Suggestions to improve the performance of Internet industry.Specifically,the research content of this paper includes the following three aspects:(1)Performance evaluation of the Internet industry.The financial and non-financial indexes are combined as alternative indexes to construct different input-output index systems.The corresponding DEA efficiency indexes are determined by the CCR model which satisfies the invariability of scale reward.On this basis,principal component analysis is carried out on The DEA efficiency value to obtain the final comprehensive efficiency.(2)Analysis of factors affecting Internet performance.Firstly,the relationship between enterprise type and efficiency is discussed.According to the principal components,Internet enterprises are divided into three categories: market-oriented,revenue-generating and coordinated oriented.Secondly,the regression model is used to analyze the factors affecting the efficiency of Internet enterprises.The influences of enterprise size,supervision mechanism,type,development potential and listing years on enterprise efficiency are mainly investigated.(3)Countermeasures study.Based on the analysis of operational efficiency and influencing factors,explore the aspects to improve performance.Specifically,it attempts to analyze the weak links in the operation of Internet enterprises from the perspective of the decomposition of comprehensive efficiency,that is,multiple principal components,and to consider the direction of efficiency improvement from the perspective of influencing factors.The research shows that: firstly,the first principal component,the second principal component and the third principal component of the comprehensive efficiency reflect the market influence,income generation ability and coordination ability of the enterprise respectively.There is an obvious correspondence between this division and the main business of Internet enterprises.Among them,market-oriented enterprises tend to engage in portal business,income-generating enterprises tend to engage in online business,and coordination-oriented enterprises tend to engage in social network business.Secondly,the overall performance of Internet enterprises is good,and there are big differences in performance between enterprises.Among them,the comprehensive efficiency of JD,Suning,Vipshop and other enterprises is much higher than that of other enterprises,while the comprehensive efficiency of Fang Tian Xia,Tuniu,Ctrip and other enterprises is lower than that of other enterprises.Thirdly,network influence is the most important reason for the differentiation of operating efficiency of Internet enterprises and the main direction of improving their efficiency,followed by the ability to generate income and coordination ability.Fourthly,the listing years,and size of enterprises will have a significant impact on efficiency.Among them,enterprise size,regulatory mechanism,type and development potential have a positive impact on the efficiency of Internet enterprises,while the listing years have a negative impact on the efficiency of enterprises.This may be because of the characteristics of the Internet industry,which is characterized by rapid technological upgrading.New companies tend to have more technological advantages,more capital favor,more development potential and faster scale expansion,thus affecting the operation efficiency.Fifthly,in order to improve the operation efficiency of Internet enterprises,when contacting their main businesses,they focus on improving the network influence,earning ability and coordination ability.In addition,without losing generality,in order to improve operational performance,Internet enterprises should increase R&D investment.The innovation of this paper is mainly reflected in the performance measurement method,which uses DEA and PCA to organically combine to measure the efficiency of Internet enterprises.On the one hand,considering the subjective arbitrariness of DEA index design,PCA can effectively solve this problem.On the other hand,the differentiation degree of principal component synthesis is expected to be guaranteed by using the comprehensive efficiency index.Undoubtedly,market competition in the Internet industry is becoming increasingly fierce,and efficiency indicators with a higher degree of differentiation may better reflect the operation status of enterprises.