Service quality and operating efficiency synergies for management control in the provision of financial services: Evidence from Greek bank branches

In this paper we concentrate on the assessment of the productive efficiency of bank branches. Bank branch operations are characterised by the effort made by management to pursue the banks' corporate objectives. The tangible part of this effort can be assessed by the operating efficiency of the branch while the intangible part is encapsulated by the quality of the provided services. The assessment of branch efficiency is pursued using data envelopment analysis methods enhanced by the value judgements of individual branch managers. This development gives insights on issues related to the appropriateness of branch input mix. The effort effectiveness is estimated by embodying three quality dimensions on the operating efficiency of bank branches. Empirical results are discussed from a sample of sixty eight commercial bank branches in Greece.