Performance evaluation of commercial bank branches in dynamic competitive conditions: a network DEA model with serial and cross-shared resources
ISSN: 0144-3585
Article publication date: 10 October 2023
Issue publication date: 2 January 2024
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
:Emerald Publishing Limited
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