Non-Parametric Model for Evaluating the Performance of Chinese Commercial Banks’ Product Innovation

A thorough analysis of commercial banks’ product innovation performance is essential to promoting bank product innovation capabilities and sustainable development. In this paper, the product innovation performance of commercial banks is defined as the conversion efficiency of input and output factor...

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Bibliographic Details
Published in:Sustainability 2020-02, Vol.12 (4), p.1523
Main Authors: Shao, Luning, You, Jianxin, Xu, Tao, Shao, Yilei
Format: Article
Language:English
Subjects:
Banking industry
Commercial banks
Efficiency
Employees
Fixed assets
Innovations
Investigations
Literature reviews
Loans
Nonparametric statistics
Objective function
Operations research
Optimization
Performance evaluation
R&D
Regional banks
Research & development
Sustainable development
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Summary:A thorough analysis of commercial banks’ product innovation performance is essential to promoting bank product innovation capabilities and sustainable development. In this paper, the product innovation performance of commercial banks is defined as the conversion efficiency of input and output factors. The credit risk of product innovation of banks is considered as an undesirable output and incorporated in the performance evaluation system. Depending on whether there is a synchronous relationship between innovation income and risks, a Fixed Correlation model (FCM) and a Variable Correlation model (VCM) are then constructed based on Data Envelopment Analysis (DEA) method for the evaluation of commercial bank product innovation performance. In addition, an output optimization model of the objective function is also constructed to estimate the target income of commercial banks’ product innovation in the FCM and VCM. Finally, the proposed model is applied to Chinese listed commercial banks for estimating the performance and target income of product innovation.
ISSN:2071-1050
2071-1050
DOI:10.3390/su12041523