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Open Access
Article
Publication date: 15 December 2023

Nicola Castellano, Roberto Del Gobbo and Lorenzo Leto

The concept of productivity is central to performance management and decision-making, although it is complex and multifaceted. This paper aims to describe a methodology based on…

Abstract

Purpose

The concept of productivity is central to performance management and decision-making, although it is complex and multifaceted. This paper aims to describe a methodology based on the use of Big Data in a cluster analysis combined with a data envelopment analysis (DEA) that provides accurate and reliable productivity measures in a large network of retailers.

Design/methodology/approach

The methodology is described using a case study of a leading kitchen furniture producer. More specifically, Big Data is used in a two-step analysis prior to the DEA to automatically cluster a large number of retailers into groups that are homogeneous in terms of structural and environmental factors and assess a within-the-group level of productivity of the retailers.

Findings

The proposed methodology helps reduce the heterogeneity among the units analysed, which is a major concern in DEA applications. The data-driven factorial and clustering technique allows for maximum within-group homogeneity and between-group heterogeneity by reducing subjective bias and dimensionality, which is embedded with the use of Big Data.

Practical implications

The use of Big Data in clustering applied to productivity analysis can provide managers with data-driven information about the structural and socio-economic characteristics of retailers' catchment areas, which is important in establishing potential productivity performance and optimizing resource allocation. The improved productivity indexes enable the setting of targets that are coherent with retailers' potential, which increases motivation and commitment.

Originality/value

This article proposes an innovative technique to enhance the accuracy of productivity measures through the use of Big Data clustering and DEA. To the best of the authors’ knowledge, no attempts have been made to benefit from the use of Big Data in the literature on retail store productivity.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 11
Type: Research Article
ISSN: 1741-0401

Keywords

Open Access
Article
Publication date: 26 February 2024

Sandra Flores-Ureba, Clara Simon de Blas, Joaquín Ignacio Sánchez Toledano and Miguel Ángel Sánchez de Lara

This paper aims to define the efficiency achieved by urban transport companies in Spain concerning the resources they use, considering the type of management used for…

Abstract

Purpose

This paper aims to define the efficiency achieved by urban transport companies in Spain concerning the resources they use, considering the type of management used for implementation, public-private, and size.

Design/methodology/approach

This study consisted of an analysis of the efficiency of 229 public-private urban transport operators during the period 2012–2021 using Data Envelopment Analysis, the Malmquist Index and inference estimators to determine productivity, efficiency change into Pure Technical Efficiency Change (PTECH), and scale efficiency change.

Findings

Based on the efficiency analysis, the authors concluded that of the 229 companies studied, more than 35 were inefficient in all analysed periods. Considering the sample used, direct management is considered significantly more efficient. It cannot be concluded that the size of these companies influences their efficiency, as the data show unequal development behaviours in the studied years.

Originality/value

This study provides arguments on whether there is a significant difference between the two types of management in the urban transport sector. It also includes firm size as a study variable, which has not been previously considered in other studies related to urban transport efficiency. Efficiency should be a crucial factor in determining funding allocation in this sector, as it encourages operators to optimize and improve their services.

Details

European Journal of Innovation Management, vol. 27 no. 9
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 16 April 2024

Isabella Melissa Gebert and Felipa de Mello-Sampayo

This study aims to assess the efficiency of Brazil, Russia, India, China, South Africa (BRICS) countries in achieving sustainable development by analyzing their ability to convert…

Abstract

Purpose

This study aims to assess the efficiency of Brazil, Russia, India, China, South Africa (BRICS) countries in achieving sustainable development by analyzing their ability to convert resources and technological innovations into sustainable outcomes.

Design/methodology/approach

Using data envelopment analysis (DEA), the study evaluates the economic, environmental and social efficiency of BRICS countries over the period 2010–2018. It ranks these countries based on their sustainable development performance and compares them to the period 2000–2007.

Findings

The study reveals varied efficiency levels among BRICS countries. Russia and South Africa lead in certain sustainable development aspects. South Africa excels in environmental sustainability, whereas Brazil is efficient in resource utilization for sustainable growth. China and India, despite economic growth, face challenges such as pollution and lower quality of life.

Research limitations/implications

The study’s findings are constrained by the DEA methodology and the selection of variables. It highlights the need for more nuanced research incorporating recent global events such as the COVID-19 pandemic and geopolitical shifts.

Practical implications

Insights from this study can inform targeted and effective sustainability strategies in BRICS nations, focusing on areas such as industrial quality improvement, employment conditions and environmental policies.

Social implications

The study underscores the importance of balancing economic growth with social and environmental considerations, highlighting the need for policies addressing inequality, poverty and environmental degradation.

Originality/value

This research provides a unique comparative analysis of BRICS countries’ sustainable development efficiency, challenging conventional perceptions and offering a new perspective on their progress.

Details

International Journal of Development Issues, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1446-8956

Keywords

Book part
Publication date: 6 May 2024

Ezzeddine Delhoumi and Faten Moussa

The purpose of this chapter is to cover banking efficiency using the concept of the Meta frontier function and to study group and subgroup differences in the production…

Abstract

The purpose of this chapter is to cover banking efficiency using the concept of the Meta frontier function and to study group and subgroup differences in the production technology. This study estimates the technical efficiency (TE) and technology gap ratios (TGRs) for banks in Islamic countries. Using the assumption of the convex hull of the Meta frontier production set using the virtual Meta frontier within the nonparametric approach as presented by Battese and Rao (2002), Battese et al. (2004), and O'Donnell et al. (2007, 2008) and after relaxing this assumption, the study investigates if there is a significant difference between these two methods. To overcome the deterministic criterion addressed to nonparametric approach, the bootstrapping technique has been applied. The first part of this chapter covers the analytical framework necessary for the definition of a Meta frontier function and its estimation using nonparametric data envelopment analysis (DEA) in the case where we impose the assumption of the convex production set and follows in the case of relaxation of this assumption. Then we estimated the TE and the TGR in concave and nonconcave Meta frontier cases by applying the Bootstrap-DEA approach. The empirical part will be reserved for highlighting these methods on data bank to study the technical and technological performance level and prove if there is a difference between the two methods. Three groups of banks namely commercial, investment, and Islamic banks in 17 Islamic countries over a period of 16 years between 1996 and 2011 are used.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

Article
Publication date: 5 May 2023

Peter Wanke, Jorge Junio Moreira Antunes, Antônio L. L. Filgueira, Flavia Michelotto, Isadora G. E. Tardin and Yong Tan

This paper aims to investigate the performance of OECD countries' long-term productivity during the period of 1975–2018.

Abstract

Purpose

This paper aims to investigate the performance of OECD countries' long-term productivity during the period of 1975–2018.

Design/methodology/approach

This study employed different approaches to evaluate how efficiency scores vary with changes in inputs and outputs: Data Envelopment Analysis (CRS, VRS and FDH), TOPSIS and TOPSIS of these scores.

Findings

The findings suggest that, during the period of this study, countries with higher freedom of religion and with Presidential democracy regimes are positively associated with higher productivity.

Originality/value

To the best of the authors’ knowledge, this is the first study that uses efficiency models to assess the productivity levels of OECD countries based on several contextual variables that can potentially affect it.

Details

Benchmarking: An International Journal, vol. 31 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 3 May 2024

Qian Long Kweh, Irene Wei Kiong Ting, Chunya Ren and Jawad Asif

This study investigates how the initiatives and controversies related to environmental, social and governance (ESG) explain firm efficiency.

Abstract

Purpose

This study investigates how the initiatives and controversies related to environmental, social and governance (ESG) explain firm efficiency.

Design/methodology/approach

Firstly, this study applies data envelopment analysis with the epsilon-based measure to estimate the firm efficiency of 80 companies in the Chinese energy sector in 2022. This approach accounts for the diversity and relative importance of inputs and outputs from a multidimensional perspective. Secondly, this study regresses the variables of ESG initiatives and controversies on the estimated firm efficiency scores through a generalised additive model, which can capture nonlinear patterns.

Findings

This study finds that a) the samples have i) about 49% room for improvement in efficiently optimising their resources and business outcomes and ii) the highest scores in governance initiatives, followed by social initiative. b) 69% of them have controversy scores that are greater than the average value. c) A cluster analysis indicates that companies with higher social initiatives have higher firm efficiency than their counterparts. d) ESG initiatives and controversies are nonlinearly related to firm efficiency.

Research limitations/implications

The findings have practical implications for policy makers and managers who prioritise ESG, particularly regarding (i) the need to examine firm performance from a multidimensional perspective, that is, to measure multiple inputs and outputs simultaneously, (ii) the nonlinearity of the nexus between ESG and efficiency in graphical forms, and (iii) the need to balance ESG initiatives and address ESG controversies.

Originality/value

This study integrates statistical approaches in examining and ensuring sustainable growth and efficiency within the Chinese energy sector and beyond.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 24 April 2024

Mery Citra Sondari, Adhi Indra Hermanu, Leli Nurlaeli and Deis Savitri Artisheila

This study aims to analyze the effectiveness and efficiency of research-based community service programs in Indonesia that used government funds in 2017–2021.

Abstract

Purpose

This study aims to analyze the effectiveness and efficiency of research-based community service programs in Indonesia that used government funds in 2017–2021.

Design/methodology/approach

The design of this research is a quantitative research method using a data envelopment analysis to evaluate 370 leading universities in Indonesia. Furthermore, six analytical models were considered to compare effectiveness and efficiency between universities. It involved two resource (budget and staff academic involved), three output (intellectual property, prototype and publication) and three outcome variables (economic impact, social impact and capacity building).

Findings

The findings showed that several universities are considered necessary, with great potential to increase output and outcome efficiency in community involvement. The study mapped and divided the position of 370 universities for additional information. The effectiveness aspect provides another perspective in assessing the performance of tertiary institutions in Indonesia and can be an option for evaluating research performance to improve the quality of output.

Originality/value

The authors use data from research and community service management information systems used, both the resources used and the results. Efficiency and effectiveness of 370 universities were compared in this study, including comparing their position on the previous assessment with the assessment of the results of this study. Approach to the concept of Mandl et al. (2008) regarding the relationship between input, output and outcome as the main component of the indicators, the authors apply to analyze efficiency and effectiveness.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 9 October 2023

James Ntiamoah Doku and Gladys A.A. Nabieu

This study provides a bibliometric analysis of bank efficiency and competition over the past years (from 1993 to 2022) to (1) discover the past and current state of knowledge on…

Abstract

Purpose

This study provides a bibliometric analysis of bank efficiency and competition over the past years (from 1993 to 2022) to (1) discover the past and current state of knowledge on bank competition and efficiency, (2) identify leading and authoritative journals and scholars who made significant contributions to the distribution of knowledge and impact, (3) identify nations that made a significant contribution and impact to the literature and (4) identify the structure of collaboration that exists between scholars in the areas of bank competition and efficiency and key thematic areas.

Design/methodology/approach

A total number of 868 documents made up of articles, reviews, book chapters, book and conference papers from the Scopus database were gathered. This study used a bibliometric analytic approach.

Findings

The number of documents on bank competitiveness and efficiency has increased significantly, as have their total publications, citations and national output. Additionally, the most esteemed and prestigious academic journals of eminent academics who have had a significant impact on the dissemination of knowledge on bank efficiency and competition literature champion papers on banking efficiency and competition. In terms of citation performance and collaborative efforts, the United States tops the developed countries, led by China, which is also the most productive. Additionally, single-country publications predominate in the literature, with China ranking first among the top five countries with corresponding authors. While the Lerner index, H-statistic, concentration index and market power were used to measure bank competitive behaviour, the data envelopment analysis approach predominates efficiency estimation techniques that are linked to cost, profit or revenue, scale, technical and productivity indexes.

Originality/value

This study is one of the first to offer bibliometric evidence of both bank competition and efficiency. It also offers proof of the distribution of knowledge and intellectual structure of the concepts and concerns in bank competition and efficiency.

Details

Journal of Economic Studies, vol. 51 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 29 April 2024

Gargi Sanati and Anup Kumar Bhandari

In the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018…

Abstract

Purpose

In the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018 considering Capital Gain and Gain from Forex Market (as desirable outputs) and Slippage (as undesirable byproducts) simultaneously, along with Advances – a desirable output considered in the traditional banking performance assessment literature. This enables to have an assessment of performance (as captured by the measured efficiency scores) of Indian Banks following an alternative viewpoint about the banking activities. The authors also explain such efficiency scores in terms of bank-specific factors, banking industry competition scenario and interest rate channel.

Design/methodology/approach

Using data envelopment analysis (DEA) method, the authors estimate six alternatives but interlinked operational efficiency scores (TES) of the Indian domestic commercial banks. In the second stage, they explain such TES in terms of bank-specific factors, banking industry competition scenario and interest rate channel.

Findings

The authors observe that the private sector banks as a group outperform those under public ownership. Moreover, although the private sector banks could maintain somewhat consistency in their operational efficiency performance over the sample period, public sector banks clearly show a declining tendency. The second stage econometric estimation results show that the priority sector lending has a negative effect on efficiency. Interestingly, the authors get varying results for the relationship between maturity and efficiency score depending on banks’ strategies on stressed assets management. Furthermore, the analyses result that banks are not so efficient in managing relatively larger-volume loans. It is also observed that banks’ efficiency positively depends on the Credit-to-Deposit (CD) ratio. It is found that the overall operational efficiency of the banks to manage their credit risk portfolio improves with a reduction in the lending rate (LR). However, the interaction of lending activities and capital market shows that with the increase in LR, corporate borrowers may switch to capital market to explore for desired funds, which may induce the banking sector to investment in capital markets and create a positive market sentiment.

Originality/value

Literature, although scanty, is there dealing stressed assets of a bank as some undesirable byproducts of its operational and business activities. However, such literature mostly done within the traditional framework of banking business activities and modern market-based business activities are almost absent in the literature. The authors have done it in the present study.

Details

Indian Growth and Development Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 9 May 2024

Abdulmenan Hamza

This study examines the impacts of the Ethiopian developmental state model on the competition, efficiency and profitability of banks.

Abstract

Purpose

This study examines the impacts of the Ethiopian developmental state model on the competition, efficiency and profitability of banks.

Design/methodology/approach

The competition, efficiency and profitability of the Ethiopian bank are measured using Panzar Rose, data envelopment analysis and financial ratio. Fixed-effect panel regression methods are applied to test the direction and strength of association between the Ethiopian developmental state model and the competition, efficiency and profitability of the country's banks while controlling bank-specific market structure and macroeconomic factors.

Findings

The Ethiopian developmental state model embeds the state-directed financial system, which affects the banking industry using a range of credit allocation instruments. Of which, directed credit schemes, interest rate control and the lack of financial freedom reduce the competition and efficiency of banks. The National Bank of Ethiopia (NBE) advances to the government and the sale of Treasury bills to a captive market enhances banking competition while negatively affecting banking efficiency. Interest rate control and the lack of financial freedom lower banking profitability. Unexpectedly, directed credit schemes improve banking profitability.

Research limitations/implications

As with any study, this one has limitations. The intra-period comparison of efficiency is based on balanced data. Future studies can use methods that can measure the efficiency of banks using unbalanced data. The computation of the yearly H-statistic is constrained by the small sample size. The use of high-frequency data for measuring competition can provide us with better insights into banking competition in Ethiopia. Furthermore, there are a number of methods for measuring banking competition, efficiency and profitability with different assumptions. Approaching the subject of this study by applying different methods will offer different insights.

Practical implications

The contributions of this study to practice are at two levels. First, at the policy level, it enhances our understanding of the impacts of developmental state model policies, as implemented in Ethiopia, on the banking industry and therefore provides suggestions to policymakers to reform the sector's policies. Second, it offers input to the management of banks regarding the factors that impact the industry.

Originality/value

The banking industry is often studied in the context of financial liberalisation. The originality of this study lies in investigating how the competition, efficiency and profitability of banks are affected when operating in the context of significant state interventions in the industry.

Details

African Journal of Economic and Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-0705

Keywords

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