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Analysis of the Operating Efficiency of Online Game Industry in China Actualized by DEA

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Author(s): Malin Song

Journal: Journal of Software
ISSN 1796-217X

Volume: 5;
Issue: 11;
Start page: 1216;
Date: 2010;
Original page

Keywords: online games industry | operating efficiency | returns to scale | super-efficient data envelopment analysis | window analysis

ABSTRACT
In the past 10 years, China's online game industry has become a sunrise industry with unlimited potential as its rapid development. Its rapid growth not only provides important support for the new round of upcoming economic growth, but also becomes a measure on building an innovation-oriented country comprehensively by grasping strategic opportunities of new scientific and technological revolution in China. However, its overall operating efficiency is not high due to the characteristics of online game industry, being young people indulgence in online games, homogeneity of games, talent shortage, virtual property transactions and other issues. In this paper, the target system is built to reflect the operational efficiency of this industry, according to economic data of liquid assets, fixed assets, employee salaries, administrative expenses, financial expenses, total profit and net investment income of the domestic 15 listed online game industries selected. Then operating efficiency is analyzed respectively based on the 2002-2008 panel data by using super-efficient data envelopment analysis and window analysis. The empirical results show that the operating efficiency of these enterprises has great fluctuation in seven years, being the widespread phenomena of inputs redundancy and outputs shortage; when the entire industry is in the period of increasing returns to scale, it is an urgent task to help enterprises become bigger and stronger in current time.
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