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: Chee, Wooi Hooy, Sok, Gee Chan
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:http://journalarticle.ukm.my/8517/
http://journalarticle.ukm.my/8517/1/jeko_48%282%29-10.pdf
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author Chee, Wooi Hooy
Sok, Gee Chan
author_facet Chee, Wooi Hooy
Sok, Gee Chan
author_sort Chee, Wooi Hooy
building UKM Institutional Repository
collection Online Access
description 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$. Banlcs that provide better technological services do acquire competitive advantage against their peers.
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spelling oai:generic.eprints.org:85172016-12-14T06:47:25Z http://journalarticle.ukm.my/8517/ Technological innovation in services and the efficiency of Malaysian Commercial Banks Chee, Wooi Hooy Sok, Gee Chan This paper revisits relative fficiency of commercial banks in Malaysia using Data Envelopment Analysis (or.a) over the 2004-2012 periods. We take into account technological innovation in bankservices, a new dimension thatwere not investigated by any previous literature. Our mainfindings are: (l) Commercial banks in Malaysian have higher pure technical fficient as compare to scale fficient. (2) Foreign banks are relatively inefficient but the gap has been gradually closing after the end of the capital control by the Malaysian government in 2005. (3) Excess numbers of Branches, Cash Deposit Machine and Cheque Deposit Machine appeared to be the major weakness of the infficiency banl<sO. ur result implies technologicali nnovation in bank servicesi s one important dimensioni n addressingt he relative fficiency of commercial bqnl$. Banlcs that provide better technological services do acquire competitive advantage against their peers. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8517/1/jeko_48%282%29-10.pdf Chee, Wooi Hooy and Sok, Gee Chan (2014) Technological innovation in services and the efficiency of Malaysian Commercial Banks. Jurnal Ekonomi Malaysia, 48 (2). pp. 111-125. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2014-2.html
spellingShingle Chee, Wooi Hooy
Sok, Gee Chan
Technological innovation in services and the efficiency of Malaysian Commercial Banks
title Technological innovation in services and the efficiency of Malaysian Commercial Banks
title_full Technological innovation in services and the efficiency of Malaysian Commercial Banks
title_fullStr Technological innovation in services and the efficiency of Malaysian Commercial Banks
title_full_unstemmed Technological innovation in services and the efficiency of Malaysian Commercial Banks
title_short Technological innovation in services and the efficiency of Malaysian Commercial Banks
title_sort technological innovation in services and the efficiency of malaysian commercial banks
url http://journalarticle.ukm.my/8517/
http://journalarticle.ukm.my/8517/
http://journalarticle.ukm.my/8517/1/jeko_48%282%29-10.pdf