Technological innovation in services and the efficiency of Malaysian Commercial Banks
This paper revisits relative fficiency of commercial banks in Malaysia using Data Envelopment Analysis (or.a) over the 2004-2012 periods. We take into account technological innovation in bankservices, a new dimension thatwere not investigated by any previous literature. Our mainfindings are: (l) C...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
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| Online Access: | http://journalarticle.ukm.my/8517/1/jeko_48%282%29-10.pdf http://journalarticle.ukm.my/8517/ http://www.ukm.my/fep/jem/content/2014-2.html |
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| Summary: | This paper revisits relative fficiency of commercial banks in Malaysia using Data Envelopment Analysis (or.a) over
the 2004-2012 periods. We take into account technological innovation in bankservices, a new dimension thatwere
not investigated by any previous literature. Our mainfindings are: (l) Commercial banks in Malaysian have higher
pure technical fficient as compare to scale fficient. (2) Foreign banks are relatively inefficient but the gap has been
gradually closing after the end of the capital control by the Malaysian government in 2005. (3) Excess numbers of
Branches, Cash Deposit Machine and Cheque Deposit Machine appeared to be the major weakness of the infficiency
banl<sO. ur result implies technologicali nnovation in bank servicesi s one important dimensioni n addressingt he relative
fficiency of commercial bqnl$. Banlcs that provide better technological services do acquire competitive advantage
against their peers. |
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