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Performance evaluation of commercial bank branches in dynamic competitive conditions: a network DEA model with serial and cross-shared resources

Pejman Shabani (Department of Industrial Engineering and Management Systems, Amirkabir University of Technology, Tehran, Iran)
Mohsen Akbarpour Shirazi (Department of Industrial Engineering and Management Systems, Amirkabir University of Technology, Tehran, Iran)

Journal of Economic Studies

ISSN: 0144-3585

Article publication date: 10 October 2023

Issue publication date: 2 January 2024

175

Abstract

Purpose

This paper aims to evaluate commercial bank branches' performance in dynamic and competitive conditions where decision-making units (DMUs) seek a greater proportion of shared resources as it happens in the real world. By introducing the concepts of cross-shared and serial-shared resources, the authors have emphasized the role of evaluation results of past periods on branches' total efficiency.

Design/methodology/approach

In this study, a new mixed-integer data envelopment analysis (MI-DEA) model has been proposed to evaluate the performance of a dynamic network in the presence of cross-shared and serial-shared resources.

Findings

The proposed model helps bank managers to find the source of inefficiencies and establish a connection between the results of the periodic performance of the DMUs and the distribution of serial and cross-shared resources. The results show that the weighting coefficients of the periods do not significantly affect the overall efficiency of commercial bank branches, unlike desirable and undesirable intermediates.

Originality/value

This paper presents the following factors: (1) A new mixed-integer network data envelopment analysis model is developed under dynamic competitive conditions. (2) For the first time in DEA models, the concept of cross-shared resources is proposed to consider shared resources between DMUs. (3) All controllable, uncontrollable, desirable and undesirable outputs in the model are considered with the possibility to transfer to the next periods. (4) A case study is given for the performance evaluation of 38 branches of an Iranian commercial bank from 2016 to 2020.

Keywords

Citation

Shabani, P. and Akbarpour Shirazi, M. (2024), "Performance evaluation of commercial bank branches in dynamic competitive conditions: a network DEA model with serial and cross-shared resources", Journal of Economic Studies, Vol. 51 No. 1, pp. 1-23. https://doi.org/10.1108/JES-09-2022-0485

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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