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BENCHMARKING PERFORMANCE USING DATA ENVELOPMENT ANALYSIS A CASE OF THE BANKING SECTOR OF PAKISTAN

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06 Pages : 50-58

http://dx.doi.org/10.31703/girr.2022(V-II).06      10.31703/girr.2022(V-II).06      Published : Jun 2022

Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan

Abstract

    Customers' needs drive the competitive nature of today's business environment. To achieve desired outcomes, resources must be transformed effectively and efficiently. Performance evaluation is one of the most important benchmarking tools for modern businesses due to sophisticated technologies, computerized processes, communication, and fierce competition. The study analyzed the performance of 26 commercial banks from 2008 to 2016. Efficiency and effectiveness were calculated using data envelopment analysis(DEA). The results showed that the sub-optimal performance of banks was caused mainly by ineffectiveness compared to Efficiency. Banks were further categorized into four groups based on their average efficiency and effectiveness scores into Ace, Underdogs, Lucky, and Unlucky. This matrix suggests that banks in the Lucky quadrant should improve Efficiency, those in the Unluck group should diversify, and those in the Underdogs quadrant should merge. Banks in the Lucky, Unlucky, and Underdog quadrants should emulate the Ace quadrant's success.

    Data Development, Analysis, Banking Sector, Benchmarking

    (1) Taqi Ullah Khan
    Lecturer, Government College of Commerce No. 2, Dera Ismail Khan, KP, Pakistan.
    (2) Farhat Ullah Khan
    Assistant Professor, Institute of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.
    (3) Umer Ahmad
    Ph.D Scholar, Institute of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.
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Cite this article

APA

    APA : Khan, T. U., Khan, F. U., & Ahmad, U. (2022). Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan. Global International Relations Review, V(II), 50-58. https://doi.org/10.31703/girr.2022(V-II).06

CHICAGO

    CHICAGO : Khan, Taqi Ullah, Farhat Ullah Khan, and Umer Ahmad. 2022. "Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan." Global International Relations Review, V (II): 50-58 doi: 10.31703/girr.2022(V-II).06

HARVARD

    HARVARD : KHAN, T. U., KHAN, F. U. & AHMAD, U. 2022. Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan. Global International Relations Review, V, 50-58.

MHRA

    MHRA : Khan, Taqi Ullah, Farhat Ullah Khan, and Umer Ahmad. 2022. "Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan." Global International Relations Review, V: 50-58

MLA

    MLA : Khan, Taqi Ullah, Farhat Ullah Khan, and Umer Ahmad. "Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan." Global International Relations Review, V.II (2022): 50-58 Print.

OXFORD

    OXFORD : Khan, Taqi Ullah, Khan, Farhat Ullah, and Ahmad, Umer (2022), "Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan", Global International Relations Review, V (II), 50-58

TURABIAN

    TURABIAN : Khan, Taqi Ullah, Farhat Ullah Khan, and Umer Ahmad. "Benchmarking Performance using Data Envelopment Analysis: A Case of the Banking Sector of Pakistan." Global International Relations Review V, no. II (2022): 50-58. https://doi.org/10.31703/girr.2022(V-II).06