Firm operation performance analysis using data envelopment analysis and balanced scorecard: A case study of a credit cooperative bank

摘要

Purpose - The purpose of this paper is to present a case study showing how the selection ofrnperformance indices affects performance results and the evaluation of a firm's performance.rnDesign/methodology/approach - This paper employs a data envelopment analysis (DEA) framework using four kinds of performance indices selection, which include basic input/output items,rnbalance scorecard (BSC) indices, balanced scorecard with risk management, and traditional financialrnindices, to evaluate banking operations.rnFindings - Shows that a DEA-based evaluation of performance produces a similar view of the firm'srnwell-being as does an analysis of financial indices; however, a BSC-based evaluation produces arndifferent assessment.rnResearch limitations/implications - This study was based on the following assumptions: first,rnwhen organizational units achieve technical efficiency, they will improve their organizationalrnperformance. Secondly, the inputs and outputs selected for the data envelopment analysis provided anrnindicator of the changes of bank's technical efficiency over the six-year period.rnPractical implications - This research was based on the data envelopment analysis approach tornfind different performance efficiency to apply four performance indicator selections, which includernbasic inputs/outputs items, balanced scorecard indices, balanced scorecard with risk management, andrntraditional financial indices, to evaluate bank operation.rnOriginality/value - Combines the balanced scorecard concept with data envelopment analysisrnmeasurements (model information) to generate measures of technical efficiency for a Taiwanese bank.rnIt shows how comparisons can be made within and across companies on the basis of balancedrnscorecard measures.