Calculation of the Balanced Factor Using an integrated DEA and BSC Approach and its Effect on the Productivity Growth with a Case Study on the Branches of a Specialized Bank

In addition to the factors such as the efficiency, size and technology of decision making units (DMUs), the balance
of DMU also affects the total factor productivity (TFP). The effect of efficiency, scale, and technology on the total factor productivity growth have been provided by a three-component decomposition of Malmquist index. In this paper, the fourth factor called the balanced factor of DMUs is defined using DEABSC method. This new concept leads to provide an extended Malmquist index and its four-component decomposition in which the effect of balanced factor on the total factor productivity growth can be detected. In fact, the balanced factor measures how much a DMU is align with some defined strategies. The proposed method in this paper has been implemented on the real data of specialized bank branches, and the results show that productivity growth has been affected by the changes in balanced factor and size of branches during the period under evaluation. In the case of positive effect of these changes, strengthen the activities is recommended, otherwise the activities should be changed or modified. Furthermore, providing such a precise and scientific improvement solutions considerably will help managers in order to adopt more constructive decisions.