Jurnal Aplikasi Bisnis dan Manajemen (JABM) E-Journal
Vol. 6 No. 3 (2020): JABM Vol. 6 No. 3, September 2020

COMPETITIVE STRUCTURE AND TECHNICAL EFFICIENCY OF BANKING INDUSTRY IN INDONESIA

Hadi Satria Ganefi (Unknown)
Wita Juwita Ermawati (Departement of Management, Faculty of Economics and Management, IPB University)
Dedi Budiman Hakim (Department of Economics, Faculty of Economics and Management, IPB University)



Article Info

Publish Date
28 Sep 2020

Abstract

Competition is an important aspect in an industry that may affect business continuity. The practice of a market structure concentrated on five major banks caused differences in efficiency and can ultimately influence competition between banks. This study aims to analyze the structure of competition and the level of technical efficiency in the banking industry during 2014-2018 period. 79banks were grouped into business group according to the core capital and were analyzed based on the groups. This study used non-structural Panzar Rosse method to analyze the competition structure. Afterwards, non parametric DEA (data envelopment analysis) method was used to determine the level of efficiency. The results showed that the banking industry in Indonesia generally operates under monopolistic competition. In addition, based on efficiency performance, bank BUKU 4 has the highest performance. This is because large of banks can produce larger economies of scale. Keywords: market structure, banking, panzar rosse model, efficiency, Data Envelopment Analysis (DEA)

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Journal Info

Abbrev

jabm

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Journal of Business and Management Application (JABM) published articles in the field of business and management applications such as business strategy management, financial management, human resources and organization, business value chain and other issues in the field of business and management. ...