Title: Measuring operational efficiency: an approach based on the data envelopment analysis

Authors: Chien-Ta Ho, Kim Hua Tan

Addresses: Department of International Trade, Lan Yang Institute of Technology, I-Lan 260, Taiwan. ' Centre for Strategy and Performance, Department of Engineering, University of Cambridge, Mill Lane, Cambridge CB2 1RX, UK

Abstract: Many small and medium-sized Taiwanese trust businesses (SMEs) have been reorganised into commercial banks in recent times. Knowledge of their operational efficiency before and after their reorganisation is vital for managers to identify and eradicate problems at the early stage of the reorganisation. However, the measuring process is difficult because financial data is often incomplete or unclear. This paper applies a data envelopment analysis (DEA) model to assist manager in evaluating banking performance before and after reorganisation. The result indicates that DEA models can be successfully applied in evaluating bank performance.

Keywords: operational efficiency; trust business; data envelopment analysis; DEA; SMEs; commercial banks.

DOI: 10.1504/IJMED.2004.004388

International Journal of Management and Enterprise Development, 2004 Vol.1 No.2, pp.120 - 135

Published online: 10 May 2004 *

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