Title: A mixed system of network data envelopment analysis to evaluate the performance of bank branches: an illustration with Iranian banks

Authors: Sajad Akbari; Jafar Heydari; Mohammad Ali Keramati; Abbas Keramati

Addresses: Department of Industrial Engineering, Kish International Campus, University of Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran ' Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Iran; Ted Rogers School of Information Technology Management, Ryerson University, Toronto, ON, Canada

Abstract: Performance evaluation in the banking industry is important for managers, customers, investors, and stakeholders. Measuring and improving efficiency in banks are among the most important applications of the data envelopment analysis technique and numerous studies have been done in this area. This study is aimed to investigate and design a mixed structure in accordance with the conditions of Iranian banks. Since we want to obtain performance of different divisions of the new structure, an envelopment form of the NDEA model had to be used. Therefore, a slack-based NDEA model was selected to solve its mathematical model. The study sample consisted of 31 branches of a large commercial bank in Iran. The advantage of this research to previous studies is that the result will be more realistic considering the inputs and outputs consistent with Iran's banking conditions. The interesting result of this research can be mentioned as follows: there is no need to allocate high inputs in order to obtain the maximum efficiency of the branches.

Keywords: data envelopment analysis; DEA; mixed system; network; efficiency; banking industry; performance evaluation; Iranian banks.

DOI: 10.1504/IJBEX.2020.109955

International Journal of Business Excellence, 2020 Vol.22 No.2, pp.198 - 212

Received: 16 Dec 2018
Accepted: 12 Mar 2019
Published online: 30 Sep 2020 *

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