Combining Fuzzy MCDM with BSC Approach in Performance Evaluation of Iranian Private Banking Sector

Abstract

The objective of this study is to construct an approach based on multiple criteria decision making (MCDM) and balanced scorecard (BSC) for evaluating performance for three nongovernmental Iranian's banks. Following the literature relating to banking performance and BSC concepts, experts and managers select 21 indexes for evaluation. Furthermore, fuzzy analytic hierarchy process (FAHP) calculated the relative weights of each chosen index in order to tolerate vagueness and ambiguity of information, and three MCDM analytical tools (TOPSIS, VIKOR, and ELECTRE) were adopted to rank the banking performance. The results indicate that a customer “” has the most significant BSC perspectives and the customer satisfaction “” is the most major index in banking sector. This proposed fuzzy MCDM method combined with BSC approach is a comprehensive and up-to-date model that can be a useful and effective assessment tool.

Integration of Balanced Scorecard (BSC), Strategy Map, and Fuzzy Analytic Hierarchy Process (FAHP) for a Sustainability Business Framework: A Case Study of a Spanish Software Factory in the Financial Sector

“…Therefore, this research incorporates fuzzy theory into the performance measurement by objectifying the evaluators' subjective judgements. Below, some basic definitions of fuzzy sets, fuzzy numbers, and linguistic variables, mainly from Buckley, Zadeh, and others [40][41][42][43][44], are reviewed, similarly to those presented in other studies [38,45] that combine the FAHP and the BSC framework.…”

A novel hybrid MCDM model for performance evaluation of research and technology organizations based on BSC approach

“…They finally adopt TOPSIS to analyze the CRM performance of ISP firms and conclude that some indicators paly an essential role in succeeding of CRM. Three MCDM methods, TOPSIS, VIKOR, and ELECTRE, are adopted to rank the banking performance by Shaverdi, Akbari, and Tafti (2011). Fuzzy AHP calculate the relative weights of each index to tolerate vagueness and ambiguity of information.…”

Evaluation Of Brand Equity Using Balanced Scorecard: Evidence From Privatized Turkish Firms

“…Opricovic developed the method called as The VIKOR (Vlsekriterijumska Optimizacija I Kompromisno Resenje) in 90's for the complex systems and compromise solution defining the closest one to the ideal solution and provides an agreement reached by mutual concessions (Yücenur and Demirel, 2012;Ju and Wang, 2013;Fu et al 2010;Shaverdi et al 2011;Wu et al 2009;Ramezaniyan et al 2012;Mohaghar et al, 2012). The method is employed for selecting a set of alternatives, and defining compromise solutions for the decision making problem with conflicting criteria to reach a final decision (Opricovic, 2011;Opricovic and Tzeng, 2007).…”