Using a Multi-Criteria Group Decision Making Approach to Select Merged Strategies for Commercial Banks

Abstract

This investigation develops an analytic hierarchy framework to help banks choose development strategies according to six main criteria comprising 41 attributes, namely management performance, staff rights and interests, customer orientation, financial analysis, government policy and risk management. Questionnaires are administered to compare the priorities of different criteria and the ratings of feasible developmental strategies amongst decision makers and respondents including bank superintendents (Department of Finance), economists, shareholders, customers, executives and staff of the Bank of Kaohsiung, Taiwan. Additionally, the analytic hierarchy process and consistent fuzzy preference relation are used to improve consistency and effectiveness in decision making. The analytical results reveal that risk management and customer orientation are the most important considerations for the Bank of Kaohsiung in the development of a strategy selection. Furthermore, the staff select the best futuristic policy on "focusing on core business competitiveness to become a specialized and stable bank," whereas the other five groups choose the strategy of "merging with other finance organizations to become an existing bank."

A Hybrid Financial Performance Evaluation Model for Wealth Management Banks Following the Global Financial Crisis

“…The AHP is a well known MCDM technique that is still widely used in business, economics, and industry (Saaty 1980(Saaty , 1990Chou et al 2004;Zavadskas et al 2008;Wang, Lin 2009b;Sipahi, Timor 2010;Zavadskas, Turskis 2011;Stankevičienė, Mencaitė 2012;Tsai, Chang 2013). This section of the study focuses on the financial services of Taiwan's WM banking industry and on how the AHP technique for organising and analysing complex decisions can be applied to this industry (Zopounidis 1999;Wu et al 2009b;Zavadskas, Turskis 2011).…”

Optimize the Banker’s Multi-Stage Decision-Making and the Mechanism of Pay Contract Influencing on Bank Default Risk in the Long-Term Model

“…Many researchers have studied structure design from the following perspectives. From the empirical works of their predecessors, Wang and Lin (2009) [2] revealed that risk management can be taken into consideration to select a strategy for the Bank of Kaohsiung. Riachi et al (2013) [3] examined the effect of corporate asset-backed securitization on managerial compensation.…”

The Least Penalty Optimization Prioritization Operators for the Analytic Hierarchy Process: A Revised Case of Medical Decision Problem of Organ Transplantation

“…The pairwise comparison method has been widely studied and applied in multicriteria decision making (MCDM) domains in last 20 years [Ho, ]. Applications of the pairwise comparison method for human decision making are illustrated [e.g., Escobar and Moreno‐Jiménez, ; Hwang, Ko, and Goan, ; Sharma, Moon, and Bae, ; Sharma and Agrawal, ; Wang and Lin, ; Bhattacharya, Geraghty, and Young, ; Dey, ; Zammori, ; Vidal, Marle, and Bocque, ; Peng et al., ]. Nevertheless, there are criticisms against this method [Belton and Gear, ; Dyer, , ; Murphy, ; Perez, ; Forman and Gass, ; Wang and Elhag, ; Yuen, , , ].…”