This paper would use the DEA method to measure the technical allocative efficiency.
IT start-ups in China in particular and the rest of the world in general are faced with the same problem of initiating DEA methods to measure effectiveness of resource allocation processes and related outcomes. For instance according to Xu and Zhang (2008) the optimum resource input-output ratios are regarded as the best indicators of efficient resource allocation processes in the IT start-up firms that depend on strategic resource utilization and mobility between sectors to achieve positive organizational outcomes. Gomes, de Mello and Meza (2008) use a hybrid approach based on DEA efficiency measurement thus highlighting the importance of large discreet resource allocation processes. This is a paradigm shift from the non-discreet statistical processes that were previously adopted by researchers to measure the optimum resource input-output ratios.
In addition to these DEA methods there are other more advanced DEA models. Among them the most popular two models are known as the CCR model and the BCC model. CCR has been named after its three discoverers Charnes, Cooper and Rhodes (1978) while BCC has been named after its discoverers Banker, Charnes and Cooper (1984). ...Show more