Evaluating Innovation Capability in Banking Under Uncertainty

Nu Dieu Khue Ngo,Toan Nguyen-Mau,Roengchai Tansuchat,Thanh Quynh Le,Van-Nam Huynh

doi:10.1109/tem.2021.3135556

Abstract

The evaluation of innovation capability (IC) plays a key role in an age of keen competition driven by modern technologies, since it enables organizations to review their innovation management process and to adjust their corresponding innovation policies. Moreover, the IC evaluation is, in fact, a multicriteria process with high uncertainty, since the market environments and competitors’ performance are both in a dynamic environment. Therefore, the evaluation of IC under uncertainty is vital to organizations. This study proposes a new integrated method for the evaluation of IC in banking organizations by combining the analytic hierarchy process (AHP) and the evidential reasoning (ER) approach in terms of the Dempster–Shafer theory of evidence. Three Vietnamese banks were used as a case study to demonstrate the applicability and validity of the proposed method. Experts in banking-related fields were invited to determine the relative importance weights of critical innovation management practices (CIMPs) and their sub-CIMPs using the AHP and to score the maturity levels of sub-CIMPs at the evaluated banks. The ER approach was then applied to generate aggregated assessments representing the ICs of banks that were finally used for their ranking in terms of IC.

Highlights

D URING the industrial revolution 4.0 with the great pressure on changing technologies, global competition, and constantly fluctuating environments, every organization must regularly innovate its products/services to satisfy better customerManuscript received March 16, 2021; revised August 18, 2021 and December 2, 2021; accepted December 11, 2021
24 innovation management practices (IMPs) extracted from 28 related articles were ranked from highest to lowest according to their frequencies of occurrences in the chosen studies
As the strengths and weaknesses in their innovation process. Based on such innovation capability (IC) evaluation, bank managers may propose breakthrough strategic plans to enhance the IC of their banks

Summary

Introduction

D URING the industrial revolution 4.0 with the great pressure on changing technologies, global competition, and constantly fluctuating environments, every organization must regularly innovate its products/services to satisfy better customerManuscript received March 16, 2021; revised August 18, 2021 and December 2, 2021; accepted December 11, 2021. D URING the industrial revolution 4.0 with the great pressure on changing technologies, global competition, and constantly fluctuating environments, every organization must regularly innovate its products/services to satisfy better customer. Review of this manuscript was arranged by Department Editor Leonardo Santiago. Koliouska et al [6] developed a multicriteria evaluation model for tourism enterprises in Greece through their websites that allows identification of the most successful practices, and provides suggestions for service improvement or innovation taking advantage of the opportunities arising in the new era of technological innovation in the tourism sector

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Conclusion