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.
Highlights
In today’s competitive world, only the companies that observe the needs of their customers and provide them with satisfaction, can compete with others and gain benefit
The structure of the paper is as follows: In Section 1 we introduce the concepts of performance assessment and balanced scorecard (BSC). in Section 2 we review the literature and in Section 3 we employ framework for performance assessment in analytic methods and we use the Fuzzy multiple criteria decision making (MCDM) for assessing the banking performance
We summarize 51 indexes of the banking performance assessment by using four perspectives of the BSC and reviewing the related literature. we used a questionnaire to homogenize the proportions of the assessment indexes
Summary
In today’s competitive world, only the companies that observe the needs of their customers and provide them with satisfaction, can compete with others and gain benefit. This requirement causes the loyalty of customers to products and services of that organization or company. To galvanize competition among banks, more emphasis is necessary to be put on the internal operational performance. This equals a need for finding an effective way to evaluate the performance of the entire organization to its objectives. Many researches are faced with financial factors to evaluate banking performance
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have