Title: An empirical study on the evaluation of bank branch performance using data envelopment analysis

Authors: Raman Manandhar, John C.S. Tang

Addresses: School of Management, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand. ' School of Management, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand

Abstract: The existing studies on efficiency evaluation of bank branches using a Data Envelopment Analysis (DEA) technique have not considered service delivery system characteristics and capabilities. In order to fill this gap, this paper develops a framework to operationalise internal service quality in a DEA framework. This paper also suggests simultaneous benchmarking of bank branches along multiple drivers of performance, which are internal service quality, operating efficiency and profitability using a modified DEA model. The application of the proposed framework for branch efficiency evaluation is illustrated with an empirical study in a bank from Thailand.

Keywords: bank branch efficiency; data envelopment analysis (DEA); internal service quality; benchmarking; Thailand.

DOI: 10.1504/IJSTM.2004.004054

International Journal of Services Technology and Management, 2004 Vol.5 No.2, pp.111 - 139

Available online: 29 Mar 2004 *

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