The purpose of this paper is to evaluate the efficiency of Algerian banks and examine the effects of explanatory factors on their performance.
Abstract
Purpose
The purpose of this paper is to evaluate the efficiency of Algerian banks and examine the effects of explanatory factors on their performance.
Design/methodology/approach
In this paper, a methodology of two-stage network data envelopment analysis (DEA) is used to explore the efficiency of a sample of 13 Algerian banks during the 2013–2017 period. In the first stage, the network DEA is used to assess the overall and stages efficiencies. In the second stage, the partial least squares (PLS) regression is conducted to determine the potential effects of explanatory factors on stages efficiency.
Findings
The main empirical results indicate that Algerian banks need an efficiency improvement in both stages. The overall efficiency of the Algerian banking system improves over the study period. The deposit producing efficiency is positively affected by bank size and bank age. The revenue earning efficiency is negatively associated with bank size and bank age. The domestic banks are more efficient than foreign banks in the deposit producing stage and the foreign banks are more efficient than domestic banks in the revenue earning stage.
Practical implications
The results might be used as guidelines for both managers and policymakers in order to improve banks and banking system performance.
Originality/value
To the best of our knowledge, this study is the first that uses the DEA in investigating the efficiency of Algerian banks by dividing the overall efficiency into deposit producing and revenue earning efficiencies. Unlike most studies that have usually used OLS regression, Tobit regression and bootstrapped truncated regression, this study is the first in the bank efficiency literature that uses PLS regression to investigate the potential effect of explanatory variables on deposit producing and revenue earning efficiencies.
Details
Keywords
Abdulrahman Adel A. Fridan and Bassem E. Maamari
The purpose of this study is to evaluate the effect of both positive and negative corporate cultures on employee performance in Saudi Arabia, in the presence of performance…
Abstract
Purpose
The purpose of this study is to evaluate the effect of both positive and negative corporate cultures on employee performance in Saudi Arabia, in the presence of performance reviews and factors leading to positive work culture, in an environment that underwent serious modification with COVID-19. The changing work methods (online, remote, etc.) have left their mark necessitating revisiting the needs and capabilities of employees in the work environment.
Design/methodology/approach
This quantitative study uses primary data from small and medium-sized enterprises (SMEs), non-profit organizations, and transnational organizations, in their transient role and influence on organizational culture change. The data set includes 311 usable responses from 50 randomly selected organizations and is analysed using structural equation modelling to test the proposed model.
Findings
A healthy corporate culture serves as the basis for increased employee performance in the workplace. The three independent variables, availability of negative culture, availability of positive culture and employee perceived performance, have a positive impact on the dependent variable employee perceived effectiveness of performance reviews; however, factors leading to the development of a positive organizational has a negative influence.
Research limitations/implications
This study faced a limitation with the potential similarity of responses due to the large number of same-background respondents (engineers). However, the results are indicative of a trend. Moreover, the responses did not allow for cross comparison between responding organizational types (SMEs, non-governmental organizations and multinational corporations) as was planned.
Practical implications
Managers should motivate their respective employees, through ensuring the diffusion and sustainability of the right culture work environment. This should allow their teams to complete tasks with little or no supervision. Moreover, as the Saudi economy is gearing up for global competitiveness, this performance culture becomes a key for the success of the strategic plans, thus the high importance of the positive culture at work today.
Social implications
Understanding the importance of positive and negative culture at the managerial level would affect the relationship with employees and improve work environment and job satisfaction.
Originality/value
This study pinpoints the need to revisit a dimming topic, proving that with the end of the COVID-19 pandemic, managers need to go back to square one. The introduction of the many novel work systems, online, remote work, etc. have changed the work setting and environment. This is requiring a new look at the employees’ perceptions on factors influencing corporate culture and performance.