Comparative organizational efficiency in finance industry: Turkey sample

In developing countries, debates on efficiency of financial industries have increasingly intensified due to the fact that current capital is not effectively used and with the financial crises that broke out on a global scale. In the process in which capitals are turned into investments, as much as importance of funds that is efficiently distributed between industries, the functional relationship between inputs and outputs used by industry has a criteria of competitiveness of the scale of each industry will provide contribution to improve policy proposals at the macro-level.Within this context, the aim of this study is to analyse competitiveness of every decision making mechanism in Turkish finance industry with considering operational efficiency and develop policy proposals testing the hypotheses taken from the literature about industries and building up by us, for this purpose, examining of international interaction of Turkish finance industry in terms of the threats and opportunities with which it is faced (Turkish Banking Industry, Turkish Insurance Industry, Turkish Investment Funds) and analysing of each sub-industry?s situation in the country are the main subject of the study. In this context, three methods are used in the study. At first, efficiency levels and total factor productivity (TFV) of decision-taking mechanisms in the industry are calculated via DEA method and DEA Malmquist Index, respectively, afterwards, sources of ineffectiveness of industries are investigated via Tobit Model. Besides these, information collected from top executives via survey technique and findings gained non-parametrically and parametrically are evaluated together. The results of the study show that Post-Keynesian approach is valid for Turkey, scale advantage appears, efficiency of decision-taking mechanism undergoing consolidation increases and organizational structure and market structure peculiar to firms decrease industrial efficiency because they are affected by external shocks in crisis periods. Moreover, in crisis periods, although the success of management, there is an important inefficiency problem in Turkish finance industry. Within the context of these results, suggestions affording the opportunity of new expansions of policy makers are developed.