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The main purpose of this paper is to examine the relationship between the market structure and financial performance of Malaysian commercial banks over the period of 2000 to 2011 by testing the structure-conduct-performance (SCP) and efficient-structure (ESH) hypotheses.

Data envelopment analysis (DEA) is employed to measure the efficiency of banks, while concentration ratio is used to assess the market structure of Malaysian banks. Next, utilizing the least squares method, both variables – market structure and efficiency of banks – among other explanatory variables (market share, operating expenses, loans ratio and size of banks) are regressed upon the dependent variable, namely financial performance of banks represented by return on asset (ROA), return on equity (ROE) and net interest margin (NIMTA).

The concentration of Malaysian banking industry is at a declining trend; structurally speaking, Malaysian banks are more competitive due to less market concentration. In terms of efficiency, the DEA results reveal that Malaysian banks are operating below their capacity at 40 per cent of efficiency. Thus, Malaysian banks could reduce their utilization of inputs by 60 per cent to operate on the efficient frontier. Next, the results offer support to ESH, which implies that market concentration and banking efficiency determines the profitability performance of Malaysian commercial banks.

Past studies on Malaysian banking sector had tended to focus either on measuring the performance or assessing the market structure of banks. Thus, this study attempts to fill the gap in the literature by testing the nexus between the market structure and the performance of banks.

This paper aims to investigate the impact of external stakeholders-related corporate social responsibility (CSR) activities (local community and suppliers) on customer value co-creation behavior. This study also aims to examine the mediating role of relationship marketing orientation (RMO) on the relationship of CSR activities and customer value co-creation behavior.

The main problem of dichotomy between customers and the management was existing in banking sector so that’s why through purposive sampling, banking customers were selected for data collection through a self-administered questionnaire. Structural equation modeling was used to test the proposed hypotheses.

The present study found that both local community-related and supplier-related CSR activities have a positive impact on customer value co-creation behavior. Relationship marketing orientation mediates between the link of CSR activities and customer value co-creation behavior. The strength of RMO in CSR supplier and customer value co-creation behavior is found to be more dominant.

This study is restricted to one country under-investigation; therefore, it can be replicated with a larger and more geographically diverse sample.

This study offers insights to the banking sector that local community-related CSR activities contribute to the value co-creation behavior and minimize the social problems of Pakistan.

The findings of this study highlight that top management of banks can enhance the customer’s participation in services by using valuable CSR activities. The results imply the importance of interactions between the recipient of services and service providers. Stakeholder theory has previously been applied to examine stakeholders’ value maximization; this study uses stakeholder theory to examine shareholders’ value co-creation.

Este estudio investiga el impacto de las actividades de responsabilidad social corporativa (RSC) relacionadas con las partes interesadas externas (comunidad local y proveedores) en el comportamiento de co-creación del valor del cliente. Este estudio también tiene como objetivo examinar el papel mediador de la orientación del marketing relacional (OMR) en la relación de las actividades de responsabilidad social corporativa y el comportamiento de co-creación del valor del cliente.

El principal problema de dicotomía entre los clientes y la gerencia existía en el sector bancario, por lo que a través de un muestreo intencional, los clientes bancarios fueron seleccionados para la recolección de datos a través de un cuestionario auto-administrado. Con el fin de verificar las hipótesis propuestas, se empleó un modelo de ecuaciones estructurales.

El presente estudio encontró que tanto las actividades de RSC relacionadas con la comunidad local como las relacionadas con los proveedores tienen un impacto positivo en el comportamiento de co-creación del valor del cliente. La orientación del marketing relacional media entre el vínculo de las actividades de responsabilidad social corporativa y el comportamiento de co-creación del valor del cliente. La fuerza de la OMR en el comportamiento de co-creación del valor del cliente y el proveedor de RSC se encontró que era más dominante.

Este estudio se limita a un único país, por lo tanto, podría ser replicado con una muestra más amplia y con mayor diversidad geográfica.

Este estudio ofrece información al sector bancario de que las actividades de RSE relacionadas con la comunidad local contribuyen al comportamiento de co-creación de valor y minimizan los problemas sociales de Pakistán.

Los resultados de este estudio ofrecen a la alta dirección de los bancos la posibilidad de mejorar la participación de los clientes en los servicios mediante la utilización de valiosas actividades de RSC. Los resultados implican la importancia de las interacciones entre el receptor de los servicios y los proveedores de servicios. La teoría de las partes interesadas se ha aplicado anteriormente para examinar la maximización del valor de las partes interesadas; este estudio utiliza la teoría de las partes interesadas para examinar la co-creación de valor de los accionistas.

The main purpose of this paper is to examine cost efficiencies of the selected Islamic and conventional commercial banks over the period of 2006 to 2009 in Malaysia.

Data envelopment analysis (DEA) was initially used, to investigate the cost efficiency of the Malaysian banking sector and followed by Tobit regression analysis determine factors influencing the efficiency of Islamic and conventional banks in Malaysia.

The DEA results reveal technical efficiency as the main contributor of cost efficiency for conventional commercial banks and allocative efficiency as the main contributor for cost efficiency of Islamic commercial banks. This indicates conventional commercial banks have been efficient in utilizing information technology and electronics. Islamic commercial banks conversely have been efficient in allocating and utilizing their resources. Additionally, scale efficiency is found to be the main source of technical efficiency for both Islamic and conventional commercial banks, denoting that size is important in improving bank efficiency. The results of Tobit regression analysis are twofold. First, it documents capitalization and bank sizes are positively and significantly associated to efficiency. Secondly, loan quality is found to be negatively and significantly associated to efficiency.

This paper contributes to the body of knowledge through its literature discussions on the efficiency of both Islamic and conventional banks and the effect of banks' specific characteristics on their efficiency.