Search results

1 – 10 of 539
Article
Publication date: 26 November 2021

Shakeb Akhtar, Mahfooz Alam and Mohd Shamim Ansari

This study aims to empirically evaluate the performance of commercial banks operating in India.

Abstract

Purpose

This study aims to empirically evaluate the performance of commercial banks operating in India.

Design/methodology/approach

The efficiency of the commercial banks is evaluated using the data envelopment analysis (DEA) approach. We measure the technical, pure technical and scale efficiency of the sampled conventional banks using the input-oriented model. We employed an extended DEA window analysis approach based on a panel sample of 47 banks in the Indian scenario. The period of study is from 2009 to 2018.

Findings

The results obtained from CRS and VRS measures envisage that Indian banks have failed to manage their inputs efficiently and convert them into outputs. It implies that Indian banks do not operate at an optimum level. Moreover, the results show that public banks exhibit superior efficiency scores followed by private and foreign banks. Apart from the aggregate sector level, we also investigate the performance of Indian banks at the individual level for in-depth analysis. The individual bank-level analysis reports that the public sector banks (PSBs) are the most efficient followed by foreign banks, whereas, the least efficient are the private banks.

Research limitations/implications

The findings of our study have implications for government, financial institutions and policymakers to access the verve and flexibility of the Indian banking system. The government should consider restructuring inefficient banks to enhance overall performance. This can be considered by improvement in managerial efficiency, efficient allocation of scarce resources and appropriate scale of operation. However, the findings of the study should be interpreted in light of the period of study for the banks being operational (as we filter out banks that ceased to exist) in India and empirical methods employed. The results may vary if alternative measures are used.

Originality/value

The present paper investigates the efficiency of the Indian banking sector employing the Data Envelopment Window Analysis (DEWA) technique. To the best of our knowledge, the present study is perhaps the first one to employ the DEWA measure on the Indian banking industry to gauge their performance over time.

Details

Benchmarking: An International Journal, vol. 29 no. 9
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 22 November 2022

Ana Krstić, Dragana Rejman-Petrović, Ivana Nedeljković and Predrag Mimović

The purpose of this paper is an analysis of the process of digital transformation of enterprises, by measuring the efficiency of the use of information and communication…

Abstract

Purpose

The purpose of this paper is an analysis of the process of digital transformation of enterprises, by measuring the efficiency of the use of information and communication technologies (ICTs) in business in 29 European countries in the period from 2012 to 2020.

Design/methodology/approach

A Charnes, Cooper and Rhodes data envelopment analysis (CCR DEA, 1978) window model has been developed to measure the ICT efficiency of European countries. Several indicators of the use of information and communication technologies in enterprises are selected as the variables of the proposed models, which are available as such in the Eurostat database for European countries. Due to the sensitivity of the results obtained by applying the DEA method to measurement errors and output values, the robustness analysis of the obtained values of average efficiency is also performed, using the bootstrap method.

Findings

The obtained results show that the highest average technical efficiency of the use of ICT in companies by windows, in the observed period, is recorded in Belgium, while Denmark is in the second place. Bulgaria, Romania, Greece and Latvia have the lowest average technical ICT efficiency per window. The analysis of the obtained results by years in the same period brings identical conclusions. Only Belgium has been ICT efficient many times. In general, for all observed countries, the movement of average ICT efficiency in the observed period shows a slightly growing trend, with the exception of a significantly decline in 2013. However, the fact is that the ICT efficiency of the observed countries in the past period is relatively low and for all countries it is 46.36%, with no country being 100% efficient and with eight countries whose average efficiency is below 50% of best practice.

Research limitations/implications

To measure and evaluate the efficiency of ICT use in enterprises, four variables for efficiency assessment are identified, given the fact that only these data are available continuously for the observed period from 2012 to 2020 in the Eurostat database.

Practical implications

Low efficiency of using digital potential in business of the observed countries indicates the need for better understanding of the nature and goals of the digital business transformation process by employees and management, to create conditions for effective implementation and optimization of business digitalization.

Originality/value

Measurement of digital transformation is the subject of a very small number of studies and research, which mainly focus on measuring and assessing the impact of digital transformation on individual countries and perform a comparative analysis of technological development in those countries. Also, analyses are mainly based on identifying similarities and differences between countries or ranking countries according to adopted evaluation criteria using different digitization indices. A step forward in this research is the application of the DEA window method for measuring the relative efficiency of the use of ICT in enterprises, and the development of a model that can be extended if necessary with indicators for which data are available.

Details

Benchmarking: An International Journal, vol. 30 no. 10
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 3 August 2015

Fekri Ali Shawtari, Mohamed Ariff and Shaikh Hamzah Abdul Razak

– The purpose of this paper is to examine the banking industry’s efficiency using the case of Yemen.

1634

Abstract

Purpose

The purpose of this paper is to examine the banking industry’s efficiency using the case of Yemen.

Design/methodology/approach

The paper utilises two-stage analysis to evaluate the efficiency adopting Data Envelopment Window Analysis (DEWA) in the first stage for the period 1996-2011. Furthermore, the paper addresses, in two-dimensional matrix, the stability and efficiency of the banking sector in order to assess their ability for survival. In the second stage, panel data analysis is applied to regress a set of bank-specific and macro-economic variables on the efficiency of the banking sector in Yemen in a comparative fashion between Islamic and conventional banks.

Findings

The findings of the investigation indicate that the Yemeni banking industry in general was on a declining efficiency’s trend with increased instability during the later period of the investigation. In addition, the study shows that most conventional banks were relatively stable, though inefficient, while Islamic banks were more efficient over the time. The results of panel data regression further suggest that efficiency is related to a number of determinants. Loan/financing, and profitability are the common key determinants of efficiency for both Islamic and conventional banks. However, other determinants have impacted differently for Islamic and conventional banks, which could reflect the uniqueness of their operation and structure.

Research limitations/implications

The present study provides a basis for the regulators and bankers to assess the viability of the banking sector and proposes policies to restructure the industry in order to enhance the performance of the whole industry.

Originality/value

The paper presents new empirical findings on the efficiency of Islamic and conventional banks in Yemen.

Details

Benchmarking: An International Journal, vol. 22 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 12 October 2023

Amr Abdel-Halim, Mohammed Al Khars and Ahmad Alnasser

This study aims to evaluate the efficiency of the three telecommunications companies in Saudi Arabia: Saudi Telecom Company (STC), Mobily and Zain over the period of 2010–2019…

Abstract

Purpose

This study aims to evaluate the efficiency of the three telecommunications companies in Saudi Arabia: Saudi Telecom Company (STC), Mobily and Zain over the period of 2010–2019. This evaluation is a step toward improving the performance of the Saudi telecommunications sector.

Design/methodology/approach

Three multicriteria decision-making (MCDM) techniques were used to calculate technical efficiency. These techniques include the traditional data envelopment analysis (DEA), window DEA and analytical hierarchy process (AHP). The three inputs used were total assets, operating expenses and capital expenditures, whereas the two outputs were sales revenue and total stockholders’ equity.

Findings

STC was ranked first using the three techniques, followed by Zain, and then Mobily. According to the DEA window analysis, these three companies were all efficient only in 2012. The efficiency was high in the initial years, 2010–2013, when it was above 0.90, and it dropped below 0.90 in the subsequent years, 2014–2019. In addition, the efficiency of STC remained high, with an average of 0.990. However, the average efficiencies of Zain and Mobily during this period were 0.807 and 0.804, respectively.

Originality/value

This is the first study to use the three MCDM techniques to evaluate the performance of telecommunications providers. The results show that window DEA is better than the other two techniques at evaluating performance over time, as it has a higher discrimination power than either the traditional DEA or AHP.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 6
Type: Research Article
ISSN: 1753-8394

Keywords

Open Access
Article
Publication date: 30 March 2021

Katarzyna Miszczynska and Piotr Marek Miszczyński

The main aim of the study was to measure and assess the efficiency of the healthcare system in Poland.

2743

Abstract

Purpose

The main aim of the study was to measure and assess the efficiency of the healthcare system in Poland.

Design/methodology/approach

An output-oriented Data Envelopment Analysis model with a 2-years window analysis extension was used between 2013 and 2018. The analysis was completed with a determination of the sources of productivity changes (between the first and last year of the study period) and factors that influence efficiency.

Findings

Efficient regions have been identified and the spatial diversity in their efficiency was confirmed. The study identified individual efficiency trends together with “all-windows” best and worst performers. Using panel modeling, it was confirmed that the efficiency of health protection is influenced by, among others, accreditation certificates, the length of the waiting list or the number of medical personnel.

Research limitations/implications

Although the analysis was conducted at the voivodeship level (NUTS2), which was fully justified, it would be equally important to analyze data with a lower aggregation level. It would be extremely valuable from the perspective of difficulties faced by the healthcare system in Poland.

Practical implications

The identification of areas and problems affecting the efficiency of the healthcare system in Poland may also be a hint for other countries with similar system solutions that also struggle with the same problems.

Originality/value

The paper explains the efficiency of the country's healthcare system while also paying attention to changes in its level, factors influencing it, spatial diversity and impact on the sector functioning.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 7
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 2 January 2020

Jaime Sánchez-Ortiz, Teresa Garcia-Valderrama, Vanesa Rodríguez-Cornejo and Francisca Cabrera-Monroy

The purpose of this paper is to demonstrate that overcapacity and tariff deficit (external constraints) negatively affect the efficiency of distribution firms in the Spanish…

Abstract

Purpose

The purpose of this paper is to demonstrate that overcapacity and tariff deficit (external constraints) negatively affect the efficiency of distribution firms in the Spanish electricity sector. To do this, the paper is based on the theory of constraints and theory of economic regulation.

Design/methodology/approach

Data envelopment analysis (DEA) window methodology is carried out on the constant scales (I-C) with a sample consisting of five main distribution firms during the period from 2006 to 2015. In turn, an analysis of the Malmquist index is carried out to assess whether it has had a displacement with respect to the efficiency frontier.

Findings

The results show that the overcapacity and the tariff deficit negatively affect the efficiency of the distribution firms of the Spanish electricity sector. In addition, there is an existence of external constraints that affect the activities of regulated organisations and the importance of adequate legislation in regulated sectors.

Originality/value

This study defines a model that shows how the efficiency problems associated with electricity distribution companies such as productive overcapacity or tariff deficit can be measured based on the theory of constraints and theory of economic regulation.

Details

International Journal of Energy Sector Management, vol. 15 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 30 August 2023

Nitin Arora and Shubhendra Jit Talwar

The fiscal outlay efficiency matters when the performance-based allocation of funds is made to state governments by the central government in a federal structure of an economy…

Abstract

Purpose

The fiscal outlay efficiency matters when the performance-based allocation of funds is made to state governments by the central government in a federal structure of an economy like India. Also the efficiency cannon of public expenditure is a key aspect in the field of public economics. Thus, a study to evaluate the efficiency in fiscal outlay of Indian states has been conducted.

Design/methodology/approach

The paper offers a three divisions–based paradigm under Network Data Envelopment Analysis framework to compare the performance of fiscal entities (say Indian state governments) in converting available fiscal resources into desired short-run and long-run growth and development objectives. The network efficiency score has been taken as a measure of the quality of fiscal outlay management that is trifurcated into divisional efficiencies representing budgeting process, fiscal outlay efficiency process and fiscal outlay effectiveness process.

Findings

It has been noticed that the states are under performing in achieving short-run growth targets and so the efficiency process division has been identified a major source of fiscal under performance. Suboptimum allocation of fiscal expenditure under various heads within the fiscal resources, as explained under budgeting process, is another major cause of fiscal under performance.

Practical implications

The study purposes a three divisions–based paradigm that takes into account efficiency of a state in (1) planning budget, (2) achieving short-run growth targets and (3) achieving long-run development targets. These three stages are named as budgeting process efficiency, fiscal outlay efficiency and fiscal outlay effectiveness, respectively. Therefore, a new paradigm called BEE paradigm is proposed to evaluate performance of fiscal entities in terms of fiscal outlay efficiency.

Originality/value

In existing literature on measuring efficiency of public expenditure, the public sector outputs have been made as function of fiscal expenditure as input treating the said outlay as an exogenous variable. In present context, the fiscal expenditure has been treated endogenous to the budgeting process. A high inefficiency on account of budgeting process supports this treatment too.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 29 December 2022

Rachita Gulati

The study evaluates the accident-adjusted dynamic efficiency of public bus operators providing bus transportation services in eight major metropolitan cities of India.

Abstract

Purpose

The study evaluates the accident-adjusted dynamic efficiency of public bus operators providing bus transportation services in eight major metropolitan cities of India.

Design/methodology/approach

The slack-based measure (SBM)–undesirable window analysis approach is used to gauge the dynamic efficiency levels and identify the sources of inefficiency in bus transportation services. This innovative approach integrates the SBM model developed by Tone (2001, 2004) and the window analysis approach of Charnes et al. (1985). The main advantage of this approach is that one can explicitly incorporate the number of accidents in the production technology specification as an undesirable (bad) output and potently handle the issue of the “curse of dimensionality” in a small sample like ours.

Findings

The key empirical findings suggest wide variations in average efficiency levels across sample bus operators in metropolitan cities. The Chennai Transport Corporation is observed as the most efficient and consistent bus operator due to its most stable efficiency performance. The results additionally unveil that the role of managerial inefficiency was diminutive, and the scale-related issues were the real cause of sub-optimal or supra-optimal behaviour of sample bus operators in the resource-utilisation process.

Practical implications

There is an urgent requirement for effective policy intercessions to mitigate the sizeable observed inefficiency in the production process and resolve scale-related issues of public bus operators offering transit services in major metropolitan cities of India.

Originality/value

This paper is maybe the first to assess the dynamic efficiency of public bus transit systems in India's major metropolitan cities after treating accidents.

Details

Benchmarking: An International Journal, vol. 30 no. 10
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 28 February 2023

Victor Pimentel and Carlo A. Mora-Monge

This study aims to benchmark the operational efficiency of fifty-eight public hospitals across Mexico between 2015 and 2018 and identifies the most critical inputs affecting their…

Abstract

Purpose

This study aims to benchmark the operational efficiency of fifty-eight public hospitals across Mexico between 2015 and 2018 and identifies the most critical inputs affecting their efficiency. In doing so, the study analyzes the impact of policy changes in the Mexican healthcare system introduced in recent years.

Design/methodology/approach

To measure the operational efficiency of Mexican public hospitals, data envelopment analysis (DEA) window analysis variable returns to scale (VRS) methodology using longitudinal data collected from the National Institute for Transparency and Access to Information (IFAI). Hospital groups are developed and compared using a categorization approach according to their average and most recent efficiency.

Findings

Results show that most of the hospitals in the study fall in the moving ahead category. The hospitals in the losing momentum or falling behind categories are mostly large units. Hospitals with initially low efficiency scores have either increased their efficiency or at least maintained a steady improvement. Finally, the findings indicate that most hospitals classified as moving ahead focused on a single care area (cancer, orthopedic care, child care and trauma).

Research limitations/implications

This study examined the technical efficiency of the Mexican healthcare system over a four-year period. Contrary to conventional belief, results indicate that most public Mexican hospitals are managed efficiently. However, recent changes in public and economic policies that came into effect in the current administration (2018) will likely have long-lasting effects on the hospitals' operational efficiency, which could impact the results of this study.

Originality/value

To the best of authors’ knowledge, this is the first study that examines the efficiency of the complex Mexican healthcare system using longitudinal data.

Details

Benchmarking: An International Journal, vol. 31 no. 2
Type: Research Article
ISSN: 1463-5771

Keywords

Open Access
Article
Publication date: 6 August 2018

Fekri Ali Shawtari, Milad Abdelnabi Salem and Izzeldin Bakhit

The purpose of this paper is to examine empirically the efficiency types of Islamic and conventional banks. It seeks to show whether the efficiency level of conventional and…

4849

Abstract

Purpose

The purpose of this paper is to examine empirically the efficiency types of Islamic and conventional banks. It seeks to show whether the efficiency level of conventional and Islamic banks significantly differs from each other. In addition, it investigates the influential factors on each type of efficiency.

Design/methodology/approach

The paper utilises the data envelopment analysis in its windows version to estimate the efficiency scores reflecting the time variance and compares between banking models. The paper uses pure technical efficiency (TE) and scale efficiency to achieve the objective of the study. In addition, the panel data technique is adopted to assess the determinants of the efficiency of the banks econometrically.

Findings

The findings of panel regression initially indicate that the pure TE is higher for conventional banks compared to Islamic banks. However, the Islamic banks are more scale efficient than their conventional counterpart. Macro and micro indicators have different impacts on the both types of efficiency. However, the unique factors that show consistent influence on the efficiency types were loans/finance, non-interest income/finance/liquidity and GDP. Furthermore, the determinants are shaped differently for Islamic and conventional banks when the banking model is controlled for.

Originality/value

This paper examines the efficiency types using a unique window analysis approach to examine the types of efficiency with a longitudinal set of data from 1996 to 2011.

Details

Benchmarking: An International Journal, vol. 25 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

1 – 10 of 539