Analysis of the business performance benchmarks

Abstract

Yu-Chuan Chen and Ching-Yi Chen

In facing the trend of globalization, the reform and revolution of the financial industry has forever changed the format of competition in Taiwan. This research suggests improvements to the slack variable based Context-Dependent DEA model proposed by Morita et al. (2005), and proposes the enhanced model with the Varying Returns to Scale hypothesis. The research takes samples from 33 banks in Taiwan, and analyzes them to suggest improvements for inefficient DMUs. Categories are proposed such that the DMUs are separated into different levels. This will assist banks in redefining their market positions and better understanding their opportunities and threats. Furthermore, the relative attractiveness and progressiveness of the banks are evaluated to find their respective benchmarks as a reference for improving their operational strategies.

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