Work

Economic evaluation of potential improvement in two-stage network data envelopment analysis: a case study in the banking sector

Year: 2024

Type: article

Abstract: This paper investigates the concept of potential improvement within two-stage network data envelopment analysis (DEA) models, with a focus on its application in the banking sector. Network DEA, which evaluates the internal structure of decision-making units (DMUs), is instrumental in assessing operational efficiency within complex networks. Our study provides a detailed review of these methodologies and explores the concept of normalized potential improvement (NPI), specifically extending it to two-stage network production processes. We conduct a comparative analysis of both radial Farrell and non-radial NPI approaches to offer a comprehensive evaluation. To illustrate the practical application of these concepts, we assess the performance of 35 bank branches operating within two-stage structures. The objective is to provide insights aimed at optimizing efficiency in the banking sector from an economic standpoint.

Source: RAIRO - Operations Research

DOI: 10.1051/ro/2024202

Authors: Xun Li, Reza Kazemi Matin, Amir Hossein Yadollahi, Fariba Khalafi

Institutions: Sichuan International Studies University, Sultan Qaboos University, Islamic Azad University, Karaj

Language: English

Topic: Efficiency Analysis Using DEA

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W4405759943