scholarly journals Operating efficiency assessment of commercial banks with Cooperative-Stackelberg hybrid two-stage DEA

2021 ◽  
Author(s):  
Jianfeng MA ◽  
Tianmingdi Zhao
Keyword(s):  
Data Envelopment Analysis ◽  
Production Process ◽  
Internal Structure ◽  
Production System ◽  
Commercial Banks ◽  
Commercial Banking ◽  
Operating Efficiency ◽  
Data Envelopment ◽  
Two Stage ◽  
Efficiency Assessment

The two-stage Data Envelopment Analysis (DEA) is widely applied to assess the efficiency of commercial banks in recent years. Even though this approach well simulates the sequence of bank’s production process, the independent operations within sub-stage are generally ignored, and the cooperative or non-cooperative relations between sub-stages are usually investigated separately. Commercial banking production system, however, has complex internal structure within which parallel and series structure can co-exist, and cooperative relations may concurrently occur with non-cooperative ones. In this paper, we develop a hybrid two-stage DEA to simultaneously consider the series-parallel internal structure and the cooperative-Stackelberg relations between sub-stages. The data of 19 Chinese listed commercial banks are used to show the abilities of the proposed models. This approach represents a powerful and flexible efficiency measurement implement that can be applied when the system in question has a complex internal structure in terms of both sub-systems features and sub-systems relations.

Evaluating two-stage holistic production systems using novel CSDEA approach

2018 ◽  
Vol 13 (1) ◽  
pp. 101-118 ◽  
Author(s):  
Dujun Zhai ◽  
Minyue Jin ◽  
Jennifer Shang ◽  
Chenfeng Ji
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Production Process ◽  
Group Decision Making ◽  
Group Decision ◽  
Collective Decision ◽  
Data Envelopment ◽  
Two Stage ◽  
Decision Strategies ◽  
Content Type

Purpose The purpose of this paper is to apply data envelopment analysis (DEA) techniques to the collective decision-making environment to appraise two-stage production process under different decision preferences. Design/methodology/approach The authors propose a novel multi-criteria group decision-making approach that uses consensus-strategic data envelopment analysis (CSDEA) to appraise two-stage production process under two different decision strategies, which are efficiency- and fairness-based group decision preferences. Findings The authors find that the proposed CSDEA model evaluates the performance of the decision-making units (DMUs) not by diminishing other competitors but rather based on group interests of the entire decision set. Originality/value The authors extend Li’s two-stage model to cases that consider both intermediate inputs and outputs. The authors address the issue of incorporating collective managerial strategy into multi-criteria group decision-making and propose a novel CSDEA model that considers not only the individual-level performance of a DMU but also the group-level or collective decision strategies.

scholarly journals Performances Management When Modelling Internal Structure of a Production Process

2020 ◽  
Vol 15 (7) ◽  
pp. 133
Author(s):  
Claudio Pinto
Keyword(s):  
Data Envelopment Analysis ◽  
Production Process ◽  
Performance Management ◽  
Internal Structure ◽  
Relative Efficiency ◽  
Data Envelopment ◽  
Method Performance ◽  
Decomposition Formula ◽  
New Strategy ◽  
Process Level

Performance management is a central point for both public and private organizations. In the data envelopment analysis (DEA) method, performance management takes the form of measuring relative efficiency. Furthermore, considering each organization and or production process as a black box,  inputs are transformed into outputs. In reality, production organizations or processes are composed of different parts that carry out different related activities. For this reason, modeling the internal structure of a production process like a system of interconnected parts makes it possible to measure its performance at the sub-process level. In this paper, we hypothesized a production process, made up of three interconnected parts. It is a new strategy to acquire relative efficiency consisting of building a block inside the system with at least two sub-processes. This step refers to a basic model of relational Network Data Envelopment Analysis (NDEA). Also, we used the additive decomposition formula to measure the efficiency of the whole process. We highlighted the differences in the measurement, between the direct application of the relational NDEA model and the measurement with the block approach model.We compared the cumulative empirical distribution functions of the efficiency scores of a sub-process with the decomposition formula multiplicative and our  approach. In conclusion, the paper proposes, a new strategy to measure the relative performances of a production process model as a network system of three subprocesses, which combines the NDEA and the DEA. This allows us to reevaluate, the indications of policy at the individual sub-process level (block). Moreover, it is a versatile approach which allows aggregation of the sub-processes in blocks, according to the particular policy requirements, legislative technological constraints, etc.

scholarly journals Quantitative efficiency assessment based on the dynamic slack-based network data envelopment analysis for commercial banks in Ghana

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Zhixiang Zhou ◽  
Nelson Amowine ◽  
Dechun Huang
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Data Envelopment Analysis Model ◽  
Network Data ◽  
Data Envelopment ◽  
Analysis Model ◽  
Two Stage ◽  
Bank Efficiency ◽  
Network Data Envelopment Analysis ◽  
Carry Over

Background: Gains in bank efficiency improvement have widely been regarded as one of the most effective and efficient means of ensuring sustainability of a financial system. Aim: This article proposes a relative dynamic two-stage network data envelopment analysis model for measurement of bank efficiency based on the slack-based measure. Setting: Twenty-seven banks in Ghana during the period of 2009–2014. Methods: By considering simultaneous processes within the framework of two-stage data envelopment analysis, the slack-based measure approach identifies the sources of inefficiency in the banks. Results: In the empirical analysis, non-performing loans are an undesirable output in one production process, which should also be treated as a carry-over factor; that is to say, some non-performing loans from the preceding year can be collected in the current year. The carry-over factors should be used to indicate the presence of performance gaps that exist in the banks. The proposed model was used to measure the efficiency of the 27 banks in Ghana during the period of 2009–2014. We also present useful suggestions for improvement in bank efficiency based on the empirical results. Conclusion: The 27 main commercial banks in Ghana are far from efficient. For all banks, the efficiency score in the second stage is much higher than that of the first stage. That means more attention should be paid to the first stage of production in order to increase the banks’ efficiency.

scholarly journals Performance Evaluation of Electric Trolley Bus Routes. A Series Two-Stage DEA Approach

2021 ◽  
Vol 6 (3) ◽  
pp. 44
Author(s):  
Ioannis E. Tsolas
Keyword(s):  
Performance Evaluation ◽  
Data Envelopment Analysis ◽  
Production Process ◽  
Current Literature ◽  
Sales Performance ◽  
Data Envelopment ◽  
Two Stage ◽  
Common Concern ◽  
Dea Approach ◽  
Transit Performance

A common concern for bus operators is efficiency measurement in order to monitor transit performance. The purpose of this paper is to propose a series two-stage data envelopment analysis (DEA) approach integrated with bootstrapping in order to evaluate the performance of electric trolley bus routes of Athens and Piraeus, Greece. Production and sales efficiency were measured in the first and second stages, respectively. In the light of the results, the routes assessed have a comparable higher DEA-based efficiency in both stages when compared to the perfect possible performance, but production and sales efficiency are not associated. Nevertheless, arterial bus routes have a marginally better performance in the production process on average, whereas the feeder–local bus routes produce a slightly better sales performance. The proposed modeling approach is an addition to the current literature, and can be employed by managers and operators.

Sign in / Sign up

Export Citation Format

Share Document