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Online banking performance evaluation using data envelopment analysis and axiomatic fuzzy set clustering

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  • Lili Tao
  • Xiaodong Liu
  • Yan Chen

Abstract

This paper presents a hybrid model to conducting performance measurements for Internet banking by using data envelopment analysis (DEA) and axiomatic fuzzy set (AFS) clustering. For each bank, DEA is applied to select a best combination by computing an aggregated efficiency score based on outputs, such as web metrics and revenue; and inputs, such as equipment, operation cost and employees. Then AFS clustering method is used to classify the best combination into different groups and provide the definitely semantic interpretations for the evaluation results. Identification of operational fitness and business orientation of each firm, in this way, will yield insights into understanding the weaknesses and strengths of banks, which are considering moving into Internet banking. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Lili Tao & Xiaodong Liu & Yan Chen, 2013. "Online banking performance evaluation using data envelopment analysis and axiomatic fuzzy set clustering," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1259-1273, February.
    • Handle: RePEc:spr:qualqt:v:47:y:2013:i:2:p:1259-1273
    DOI: 10.1007/s11135-012-9767-3
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    References listed on IDEAS

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    Cited by:

    1. Sakouvogui Kekoura & Shaik Saleem & Addey Kwame Asiam, 2020. "Cluster-Adjusted DEA Efficiency in the presence of Heterogeneity: An Application to Banking Sector," Open Economics, De Gruyter, vol. 3(1), pages 50-69, January.
    2. Philip Odewole Olawale, 2020. "Adequacy of DEA in Measuring the Efficiency of Public Sector Entities in Nigeria: A Comparative Analysis Approach," Journal of Economics and Behavioral Studies, AMH International, vol. 12(5), pages 13-22.
    3. Shakeb Akhtar & Mahfooz Alam & Aslam Khan & Mohd Shamshad, 2023. "Measuring technical efficiency of banks vis-à-vis demonetization: an empirical analysis of Indian banking sector using CAMELS framework," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1739-1761, April.
    4. Delimiro Visbal-Cadavid & Mónica Martínez-Gómez & Francisco Guijarro, 2017. "Assessing the Efficiency of Public Universities through DEA. A Case Study," Sustainability, MDPI, vol. 9(8), pages 1-19, August.

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