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

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.

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Publication Details

Journal
RAIRO. Operations research
Published
2024-12-24
DOI
https://doi.org/10.1051/ro/2024202
Primary Topic
Efficiency Analysis Using DEA
Type
article
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article

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

Amir Hossein Yadollahi, F. Khalafi, Reza Kazemi Matin, Xun Li
RAIRO. Operations research
Efficiency Analysis Using DEA
article

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

Amir Hossein Yadollahi, F. Khalafi, Reza Kazemi Matin, Xun Li
article en

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.

RAIRO. Operations researchVol. 59(2)
Islamic Azad University, Karaj (IR), Sichuan International Studies University (CN), Sultan Qaboos University (OM)
Peace, Justice and strong institutions
Openalex Percentile: Top 70%
Efficiency Analysis Using DEA
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Economic evaluation of potential improvement in two-stage network data envelopment analysis: a case study in the banking sector — Amir Hossein Yadollahi, F. Khalafi, et al. · RAIRO. Operations research (2024) | TGRS Research Map | TGRS