Performance optimization of an online retailer by a unique online resilience engineering algorithm

ABSTRACT

Online shopping has become more attractive and competitive in electronic markets. Resilience engineering (RE) can help such systems divert to the normal state in case of encountering unexpected events. This study presents a unique online resilience engineering (ORE) approach for online shopping systems and customer service performance. Moreover, this study presents a new ORE algorithm for the performance optimisation of an actual online shopping system. The data are collected by standard questionnaires from both expert employees and customers. The problem is then formulated mathematically using data envelopment analysis (DEA). The results show that the design process which is based on ORE is more efficient than the conventional design approach. Moreover, on-time delivery is the most important factor from the personnel’s perspective. In addition, according to customers’ view, trust, security and good quality assurance are the most effective factors during transactions. This is the first study that introduces ORE for electronic markets. Second, it investigates impact of RE on online shopping through DEA and statistical methods. Third, a practical approach is employed in this study and it may be used for similar online shops. Fourth, the results are verified and validated through complete sensitivity analysis.

KEYWORDS:

• Online shopping
• retailing
• online resilience engineering (ORE)
• data envelopment analysis (DEA)
• statistical methods
• customer satisfaction

Disclosure statement

No potential conflict of interest was reported by the authors.