Abstract
The existing studies on efficiency evaluation of bank branches using a data envelopment analysis (DEA) technique have not considered intangible aspects associated with resource inputs in the branches. The intangible aspects of resource inputs in a branch characterize the effectiveness of service delivery system in supporting efficient and quality service delivery to external customers. In order to fill this gap, this paper develops a framework for incorporating this aspect into a DEA framework in the form of internal service quality. This paper also suggests the simultaneous benchmarking of the performance of bank branches along multiple dimensions using a modified DEA formulation. The dimensions of performance considered are internal service quality, operating efficiency, and profitability.
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