Analysis of Innovation Performance for Retail Banking Industry With the Hybrid Fuzzy Decision-Making Approach

Shubin Wang,Hasan Dinçer,Qilei Liu,Serhat Yüksel

doi:10.1177/2158244020927425

Shubin Wang, Hasan Dinçer + Show 2 more

Open Access

https://doi.org/10.1177/2158244020927425

Copy DOI

Abstract

This study aims to evaluate the innovation performance of the Turkish banking industry. For this purpose, eight different financial and nonfinancial criteria are identified as a result of literature review. Moreover, five biggest Turkish deposit banks are selected as alternatives. Interval type 2 fuzzy decision-making trial and evaluation laboratory (IT2 FDEMATEL) is taken into account to weight the dimensions. On the other side, to rank the alternatives, interval type 2 fuzzy Vise Kriterijumska Optimizacija I Kompromisno Resenje (IT2 FVIKOR) approach is considered. The findings show that market share and return on investment are the most important factors in the innovation performance of retail banking services. This situation gives information that the when banks are more successful in the market, they can make investment to the innovation more effectively. The main reason is that these banks have enough capacity to make this kind of investments. Thus, it is recommended that Turkish banks should first make an efficiency analysis to increase their profit margin so that their capacities can be improved. For this purpose, many different factors should be taken into account by Turkish banks, such as personnel competency and technological development. Within this scope, these banks should make financial analysis of the innovation effectively by generating a qualified team. However, necessary research and development activities should be conducted to reach this objective. Hence, it can be possible to minimize ineffective innovation for the banks.

Highlights

There is high competition in the banking industry all over the world
This study aims to examine the innovation capacity of Turkish banks, and interval type 2 (IT2) fuzzy decision-making trial and evaluation laboratory (DEMATEL) and IT2 fuzzy Vise Kriterijumska Optimizacija I Kompromisno Resenje (VIKOR) methods are taken into account in the analysis process
First, the weighting process is employed by the DEMATEL method and ranking process is considered via the VIKOR method

Summary

Introduction

There is high competition in the banking industry all over the world In this environment, especially small banks face difficulties to cope with this competition. Especially small banks face difficulties to cope with this competition They mainly take some new actions to increase their competitive powers. It can be very difficult to survive in this competitive environment For this purpose, they make new innovations to be different from their rivals (Berraies & Hamouda, 2018). New credit cards, which provide different opportunities, can be very helpful for these banks to gain competitive power. In this context, the credit cards that give bonuses for airline tickets can attract the attentions of the people who regularly use planes in their lives (Esmaeilpour et al, 2016). In addition to them, providing various banking services in alternative teller machines (ATMs) and internet banking can have a contribution to increase customer satisfaction

Objectives

Methods

Findings

Conclusion