scholarly journals The Efficiency Analysis of Large Banks Using the Bootstrap and Fuzzy DEA: A Case of an Emerging Market

Information ◽  
2021 ◽  
Vol 12 (12) ◽  
pp. 507
Author(s):  
Margareta Gardijan Kedžo ◽  
Branka Tuškan Sjauš
Keyword(s):  
Business Performance ◽  
Emerging Market ◽  
Bootstrap Method ◽  
Uncertain Data ◽  
Banking System ◽  
Additional Measure ◽  
Macroeconomic Conditions ◽  
Real Market ◽  
Using Data ◽  
Fuzzy Dea

In this study, banks’ business performance efficiency was analysed using data envelopment analysis (DEA), with expense categories as inputs and income categories as outputs. By incorporating a bootstrap method and a fuzzy data approach into a DEA model, additional insights and sensitivity analysis of the results were obtained. This study shows how fuzzy and bootstrap DEA can be used for investigating real market problems with uncertain data in an uncertain sample. The empirical analysis was based on the period of 2009–2018 for a sample of seven of Croatia’s largest private banks. The aim of the study was also to interpret the DEA results with regards to the specific market, legal, and macroeconomic conditions, caused by the changes introduced in the last decade. The results, and the changes in the inputs and outputs over time, revealed that the market processes occurring in the observed period had a significant impact on banks’ business performance, but led to a more efficient banking system. Two banks were found to be dominant over the others regardless of the changes in the sample and data fuzziness. DEA results were additionally compared to the most important financial indicators and accounting ratios, as an alternative or additional measure of banks’ efficiency and profitability.

scholarly journals Economic Freedom, Country Risk and Cost Efficiency in Jordan and the GCC Countries

2018 ◽  
Vol 21 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Anwar Al-Gasaymeh
Keyword(s):  
Economic Freedom ◽  
Banking Sector ◽  
Stochastic Frontier ◽  
Banking System ◽  
Country Risk ◽  
Macroeconomic Conditions ◽  
Gcc Countries ◽  
Bank Structure ◽  
Using Data ◽  
The Impact

Using data from 2003 to 2010, we examine the impact of economic freedom and country risks on the bank costs of potential Gulf Cooperation Council (GCC) union. In estimating a common frontier, this article employs Stochastic Frontier Approach (SFA) to control for country-specific variables, that is, economic freedom, country risk, macroeconomic conditions, bank accessibility and bank structure, for an unbalanced panel of 90 Jordanian and the GCC countries’ banks. This article further estimates bank efficiency levels in the potential GCC union member countries to shed some light on the capability and capacity of the banks to compete and survive within the future GCC union. We find that economic freedom helps in reducing potential bank costs. Enhancing economic freedom is crucial for the region to attract more investments and create a viable banking system. In order for the GCC members to have a successful union and achieve the objectives faster, it is important to have a similar level of economic performance, in particular in the banking sector.

Evolution of top management’s understanding of product quality in Eastern Europe since the end of communism

2017 ◽  
Vol 29 (1) ◽  
pp. 82-100
Author(s):  
Svetoslav Georgiev ◽  
Emil Georgiev
Keyword(s):  
Eastern Europe ◽  
Product Quality ◽  
Quantitative Research ◽  
Business Performance ◽  
Research Approach ◽  
Senior Managers ◽  
Content Type ◽  
Doing Business ◽  
Using Data ◽  
The Impact

Purpose The purpose of this paper is to analyse the evolution of top management’s understanding of product quality in Bulgaria since the end of communism. The study examines three specific areas: top management’s understanding of the term “quality”; top management’s understanding of the relationship between quality and business performance; and top management’s understanding of the impact of job position on quality. Design/methodology/approach The paper relies on a quantitative research approach by using data from a survey of 186 companies in Bulgaria. Findings The paper suggests that senior managers in Bulgaria continue to base their understanding of “quality” on a single approach (*a characteristic of the communist era), with the product-based and the user-based approaches currently being the two most common ones. At the same time, surprisingly enough, this study claims that senior management in Bulgaria is currently well aware of the importance of quality as a dimension of firm’s competitiveness, and is also highly conscious of its roles’ impact on product quality. Research limitations/implications The results of this study are exclusively based on the case of Bulgaria and must be treated with caution in the case of other former communist states from the Central and Eastern Europe (CEE) region. Practical implications This paper has relevance for both managers and companies doing business in Eastern Europe. Originality/value This is the first paper to provide detailed analysis of the evolution of the understanding of “product quality” in CEE since the end of communism. Moreover, this paper applies, for the first time, Garvin’s five approaches to defining quality within a practical context.

scholarly journals Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?

2018 ◽  
Vol 8 (4) ◽  
pp. 64 ◽  
Author(s):  
Hien Thi Ngoc Huynh ◽  
Phuong V. Nguyen ◽  
Khoa T. Tran
Keyword(s):  
Emerging Market ◽  
Developed Countries ◽  
Organizational Slack ◽  
Optimum Level ◽  
International Expansion ◽  
Manufacturing Enterprises ◽  
Long Run ◽  
Third Stage ◽  
And Performance ◽  
Using Data

This paper aims to investigate the three-stage theory of international expansion in the long run from the perspective of firm behavior. Although this topic has been mostly explored using data from developed countries, this paper aims to fill the research gap in an emerging market by using an extensive unbalanced panel data of 12,704 unlisted Vietnam manufacturing enterprises from the General Statistics Office during 2007 to 2012. The findings illustrated a significant S-shaped relationship between internationalization and performance. Notably, the results depict significantly moderating effects of both high-discretion slacks and low-discretion slacks on the internationalization–performance relationship across three stages of global expansion as an enterprise enhances this relationship in the first and third stage although this worsens it in the middle stage. The empirical results suggest that firms should determine the optimum level of internationalization and slacks in addition to balancing their costs with their real gains.

Critical Success Factors and Outcomes of Market Knowledge Management

2010 ◽  
Vol 6 (3) ◽  
pp. 1-21 ◽  
Author(s):  
Subramanian Sivaramakrishnan ◽  
Marjorie Delbaere ◽  
David Zhang ◽  
Edward Bruning
Keyword(s):  
Knowledge Management ◽  
Business Performance ◽  
Critical Success Factors ◽  
Success Factors ◽  
Future Research ◽  
Effective Management ◽  
Market Knowledge ◽  
Information Technology Adoption ◽  
Critical Success ◽  
Using Data

In this paper, the authors examine critical success factors and outcomes of market knowledge management, which is the management of knowledge pertaining to a firm’s customers, competitors, and suppliers. Using data collected from 307 managers in 105 businesses across Canada, the authors show that a firm’s extent of information technology adoption, its analytical capabilities, and market orientation are critical success factors for the firm’s market knowledge management. An important outcome of market knowledge management is the organization’s financial performance, mediated by customer satisfaction and customer loyalty. Results of this study indicate that superior business performance depends not only on the effective management of knowledge, but also on what type of knowledge is managed. Finally, implications of results and avenues for future research are discussed.

The influence of unilateral supplier transaction-specific investments on international buyer opportunism: empirical findings from local suppliers in China

2020 ◽  
Vol 37 (2) ◽  
pp. 213-239 ◽  
Author(s):  
Lei Wang ◽  
Chun Zhang ◽  
Jun Li ◽  
Dong Huo ◽  
Xing Fan
Keyword(s):  
Emerging Market ◽  
Multiple Informants ◽  
Supplier Relationships ◽  
Content Type ◽  
Relationship Length ◽  
Cross Border ◽  
Specific Investments ◽  
Using Data ◽  
The Relationship

PurposeThis study examines how unilateral supplier transaction-specific investments (TSIs), directly and indirectly, influence international buyer opportunism and the extent to which detailed contracts enable suppliers to safeguard against international buyer opportunism. The study also examines whether relationship length affects the efficacy of detailed contracts in cross-border outsourcing relationships.Design/methodology/approachThe hypotheses are tested by using data collected from multiple informants working for 229 manufacturing suppliers in China. Multiple regression with a three-way interaction is used to test the hypotheses.FindingsUnilateral supplier TSIs encourage international buyer opportunism through increased supplier dependence. Contract specificity negatively moderates the effect of supplier dependence on international buyer opportunism. This moderating effect is stronger in long-term cross-border buyer–supplier relationships than in short-term ones.Originality/valueThe current study extends the cross-border outsourcing literature by examining how emerging-market suppliers in a weak power position can proactively safeguard against international buyer opportunism by using detailed contracts. Our findings show that supplier dependence mediates the relationship between unilateral supplier TSIs and international buyer opportunism; detailed contracts, however, can help dependent suppliers safeguard against international buyer opportunism. In particular, the findings highlight the importance of long-term buyer–supplier relationships that enhance the efficacy of detailed contracts.

scholarly journals Revenue Diversification, Risk and Bank Performance of Vietnamese Commercial Banks

2019 ◽  
Vol 12 (3) ◽  
pp. 138 ◽  
Author(s):  
Ngoc Nguyen
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Transformation Model ◽  
Annual Reports ◽  
Bank Performance ◽  
Method Of Moment ◽  
Revenue Diversification ◽  
Interest Income ◽  
Using Data

In the future, when the process of economic integration in the banking sector is more powerful, and competitive, diversifying revenue is an inevitable and objective trend to help the banks increase profits, minimize risks and improve their competitive position in the system. The research is on the relationship between revenue diversification, risk and bank performance using data from audited financial statements and annual reports of 26 commercial banks listed and unlisted in Vietnam during the period 2010–2018. The research method uses Generalized Method of Moment (GMM) modeling techniques to solve endogenous problems, variance and autocorrelation in the research model. Research results show that diversification negatively impacts profitability and the higher the diversification, the higher the risk of commercial banks. However, the more diversified listed banks, the more increased the bank’s stability. The banks show the weakness and lack of experience of the banking system in developing a reasonable profit transformation model. The revenue diversification of banks is currently passive and moves slowly. Interest income is still the motivation of bank development, boosting profit growth. Growth, as well as the contribution from service activities, is not commensurate with potentials; although there are many positive points, they are not enough to cover risks from net interest income activities.

Strategic merge: a gain or a gamble – the case of Telco China

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Wing Sun Li
Keyword(s):  
Undergraduate Students ◽  
Business Performance ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
High Tech ◽  
Competitive Strategies ◽  
Content Type ◽  
Differentiation Strategy ◽  
Academic Level

Learning outcomes By reviewing the case study, readers are expected to understand the constraints of competitive strategies in a shifting environmental landscape; the difficulties of foreign companies to sustain in an emerging market with government interventions; the subtlety of joint venture (JV) formation by partners with very divergent background, priority and agenda; evaluation of behavioural orientations of partnership and JV operational arrangements as determinants of a successful JV strategy. Case overview/synopsis High-tech companies can enjoy super profits from their products when only a few competitors can compete with them technologically. However, these companies also nurture a high-cost operational culture that sets a constraint for their further growth when superiority of the technology can no longer be maintained. High-tech companies may reposition their businesses with a strategic shift from differentiation strategy to cost focus strategy. The attendant shift as well as synchronization problem in an organization may require a larger effort to revamp. This case describes a global telecom infrastructure company with successful business performance in China in her early establishment with a pre-emptive technological edge. Mitigation of technological superiority and the rise of local competitors have forced the Company to opt for a cooperative strategy with a local player in the establishment of a low-cost joint venture. Does the new joint venture facilitate the strategic shift or just create an illusion of cooperation? Complexity academic level Undergraduate students and post graduate students taking strategic management course. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

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