Digital Transformation and Operational Efficiency: A Two-Stage DEA Approach in Electricity Distribution Units in Central Java and the Special Region of Yogyakarta

Authors

  • Singgih Budiaji Program Studi Magister Ilmu Ekonomi, Fakultas Ekonomi dan Bisnis, Universitas Airlangga, Surabaya, Indonesia
  • Lilik Sugiharti Program Studi Magister Ilmu Ekonomi, Fakultas Ekonomi dan Bisnis, Universitas Airlangga, Surabaya, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v7i4.6441

Keywords:

Digital Transformation, PLN Mobile, Operational Efficiency, Data Envelopment Analysis, Tobit Regression

Abstract

This study examines the impact of digital transformation, facilitated by the PLN Mobile application, on the operational efficiency of Customer Service Units (UP3) under PT PLN (Persero) Distribution Main Unit (UID) Central Java and the Special Region of Yogyakarta. The Digital Transformation Index (DTI) is constructed using the ratio of PLN Mobile users to total customers and the ratio of digital complaints to total complaints. The analysis covers 78 Decision Making Units (DMUs) over the period 2020–2025. Technical efficiency is measured using input-oriented Data Envelopment Analysis (DEA) under both Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) assumptions. A two-limit Tobit regression model is subsequently employed to examine the determinants of efficiency. The results indicate average efficiency scores of 0.755 (CRS) and 0.791 (VRS). The number of customers significantly reduces efficiency, while the Capacity Index shows a positive relationship at the 10% significance level. In contrast, the Digital Transformation Index (DTI) does not demonstrate statistical significance. The findings suggest that operational capacity and service load pressures play a more substantial role in explaining efficiency variations than the intensity of front-end digitalization.

References

Afonso, A., & Aubyn, M. St. (2005). Non-Parametric Approaches to Education and Health Efficiency in OECD Countries. Journal of Applied Economics, 8(2), 227–246. https://doi.org/10.1080/15140326.2005.12040626

Anang, B. T. (2022). Two-Stage Dea Estimation of Technical Efficiency: Comparison of Different Estimators. Review of Agricultural and Applied Economics, 25(1), 65–72. https://doi.org/10.15414/raae.2022.25.01.65-72

Antonelli, M. A., & De Bonis, V. (2019). The efficiency of social public expenditure in European countries: a two-stage analysis. Applied Economics, 51(1), 47–60. https://doi.org/10.1080/00036846.2018.1489522

Badunenko, O., & Tauchmann, H. (2018). Simar and Wilson Two-Stage Efficiency Analysis for Stata. The Stata Journal, 18(4), 950–988.

Baiyere, A., Salmela, H., & Tapanainen, T. (2020). Digital transformation and the new logics of business process management. European Journal of Information Systems, 29(3), 238–259. https://doi.org/10.1080/0960085X.2020.1718007

Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis. Management Science, 30(9), 1078–1092. https://doi.org/https://doi.org/10.1287/mnsc.30.9.1078

Banker, R. D., & Natarajan, R. (2008). Evaluating Contextual Variables Affecting Productivity Using Data Envelopment Analysis. Operations Research, 56(1), 48–58. https://doi.org/10.1287/opre.1070.0460

Bharadwaj, A., El Sawy, O., Pavlou, P., & Venkatraman, N. (2013). Digital Business Strategy: Toward a Next Generation of Insights. MIS Quarterly, 37(2), 471–482.

Bidang Niaga & Manajemen Pelanggan. (2025). Outlook Kinerja Bidang Niaga & Manajemen Pelanggan Tahun 2025 (Vol. 2025, Issue September).

Çelen, A. (2013). Efficiency and productivity (TFP) of the Turkish electricity distribution companies: An application of two-stage (DEA&Tobit) analysis. Energy Policy, 63, 300–310. https://doi.org/10.1016/j.enpol.2013.09.034

Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring The Efficiency Of Decision Making Units. European Journal of Operational Research, 2(6), 429–444. https://doi.org/10.1016/0377-2217(78)90138-8

Cooper, W. W., Seiford, L. M., & Zhu, J. (2011). Handbook on Data Envelopment Analysis: Vol. (2nd ed.). Springer.

Dyson, R. G., Allen, R., Camanho, A. S., Podinovski, V. V., Sarrico, C. S., & Shale, E. A. (2001). Pitfalls and protocols in DEA. European Journal of Operational Research, 132(2), 245–259. https://doi.org/10.1016/S0377-2217(00)00149-1

Fernandes, F. D. S., Stasinakis, C., & Bardarova, V. (2018). Two-stage DEA-Truncated Regression: Application in banking efficiency and financial development. Expert Systems with Applications, 96, 284–301. https://doi.org/10.1016/j.eswa.2017.12.010

Greene, W. H. (2018). Econometric Analysis (8th Editio).

Gupta, S., & Verhoeven, M. (2001). The efficiency of government expenditure: Experiences from Africa. Journal of Policy Modeling, 23(4), 433–467. https://doi.org/10.1016/S0161-8938(00)00036-3

Hauner, D., & Kyobe, A. (2010). Determinants of government efficiency. World Development, 38(11), 1527–1542. https://doi.org/10.1016/j.worlddev.2010.04.004

Kotarba, M. (2017). Measuring Digitalization-Key Metrics. In Foundations of Management (Vol. 9, Issue 1, pp. 123–138). https://doi.org/10.1515/fman-2017-0010

Lin, B., & Xie, Y. (2023). Does digital transformation improve the operational efficiency of Chinese power enterprises? Utilities Policy, 82(November 2022), 101542. https://doi.org/10.1016/j.jup.2023.101542

Lipczynski, J., Wilson, J. O. S. ., & Goddard, J. A. . (2005). Industrial Organization: Competition, Strategy, Policy. Pearson Education.

Nardo, M., Saisana, M., Saltelli, A., Tarantola, S., Hoffman, A., & Giovannini, E. (2005). Handbook on constructing composite indicators. In OECD Statistics Working Papers (Issue 03). http://www.oecd-ilibrary.org/docserver/download/5lgmz9dkcdg4.pdf?expires=1471336777&id=id&accname=guest&checksum=158391DADFA324416BB9015F3E4109AF

PT PLN (Persero). (2020). Peluncuran New PLN Mobile. https://web.pln.co.id

Setiawan, M. (2023). Measuring the Competition Index in the Indonesian Manufacturing Industry: The Structure–Conduct–Performance Paradigm. Sustainability (Switzerland), 15(15). https://doi.org/10.3390/su151511726

Tobin, J. (1958). Estimation of Relationships for Limited Dependent Variables Published by : The Econometric Society Of Relationships For Limited Dependent Variables. 26(1), 24–36.

Tone, K. (2001). A Slacks-Based Measure of Efficiency in Data Envelopment Analysis. International Series in Operations Research and Management Science, 164, 195–209. https://doi.org/10.1007/978-1-4419-6151-8_8

Uribe-Linares, G. P., Ríos-Lama, C. A., & Vargas-Merino, J. A. (2023). Is There an Impact of Digital Transformation on Consumer Behaviour? An Empirical Study in the Financial Sector. Economies, 11(5), 1–16. https://doi.org/10.3390/economies11050132

Vial, G. (2019). Understanding Digital Transformation: A Review And A Research Agenda. Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003

Wang, D., & Xia, X. (2024). The Impact of Corporate Digital Transformation on Firms’ Performance in Utilities Sector. Heliyon, 10(1), e23362. https://doi.org/10.1016/j.heliyon.2023.e23362

Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading Digital: Turning Technology Into Business. Harvard Business Review Press.

Zhao, H., Zhao, H., & Guo, S. (2018). Operational efficiency of Chinese provincial electricity grid enterprises: An evaluation employing a three-stage data envelopment analysis (DEA) model. Sustainability, 10(9), 1–18. https://doi.org/10.3390/su10093168

Zou, L., Li, W., Wu, H., Liu, J., & Gao, P. (2024). Measuring Corporate Digital Transformation: Methodology, Indicators and Applications. Sustainability, 16(10), 1–15. https://doi.org/10.3390/su16104087

Downloads

Published

2026-04-11

How to Cite

Budiaji, S., & Sugiharti, L. (2026). Digital Transformation and Operational Efficiency: A Two-Stage DEA Approach in Electricity Distribution Units in Central Java and the Special Region of Yogyakarta. Dinasti International Journal of Education Management and Social Science, 7(4), 3642–3656. https://doi.org/10.38035/dijemss.v7i4.6441

Issue

Vol. 7 No. 4 (2026): Dinasti International Journal of Education Management and Social Science (April - May 2026)

Section

Articles

License

Copyright (c) 2026 Singgih Budiaji, Lilik Sugiharti

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. The copyright on each article belongs to the author(s).
  2. The author acknowledges that the Dinasti International Journal of Education Management and Social Science (DIJEMSS) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
  3. Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Education Management and Social Science (DIJEMSS).