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What is Scale Efficiency

Handbook of Research on Strategic Performance Management and Measurement Using Data Envelopment Analysis
Success of a branch at operating in optimum scale. Scale efficient branch works at the most productive scale size.
Published in Chapter:
Bank Branch Efficiency with DEA
Mehmet Hasan Eken (Istanbul Commerce University, Turkey) and Süleyman Kale (Ziraat Bankası, Turkey)
DOI: 10.4018/978-1-4666-4474-8.ch022
Abstract
In this chapter, the extent of inefficiency of bank branches in different dimensions is evaluated with slack-based model of data envelopment analysis. Each efficiency dimension reveals the strengths, weaknesses, and improvement capabilities of branches. Multi-dimensional comparison enables the determination of the overall characteristics and the choice of the improvement strategies accordingly. An extensive literature analysis of bank branches and future research directions is also presented.
Full Text Chapter Download: US $37.50 Add to Cart
More Results
Data Envelopment Analysis for Operational Efficiency
A unit is scale efficient when its size of operations is optimal so that any modifications on its size will render the unit less efficient. The value for scale efficiency is obtained by dividing the aggregate efficiency by the technical efficiency.
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Benchmarking Regulators: A Data Envelopment Analysis of Italian Water Authorities' Performance
The scale efficiency score indicates whether a firm operates at the most productive scale size (score=1) or not. A score smaller than one indicates that the firms is over/under-dimensioned.
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