A hybrid MCDM approach for performance evaluation in the banking industry

Kybernetes ◽  
2017 ◽  
Vol 46 (8) ◽  
pp. 1386-1407 ◽  
Author(s):  
Mohammad Ali Beheshtinia ◽  
Sedighe Omidi
Keyword(s):  
Performance Evaluation ◽  
Balanced Scorecard ◽  
Banking Industry ◽  
Multiple Criteria Decision Making ◽  
Fuzzy Topsis ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Environmental Care ◽  
Hybrid Approaches ◽  
Copeland Method

Purpose This paper aims to propose a hybrid multiple criteria decision-making (MCDM) technique for performance evaluation of banks in which the banks are assessed and ranked according to the criteria of the balanced scorecard (BSC) methodology and corporate social responsibility (CSR) views. Design/methodology/approach To clarify the performance of the proposed model, the MCDM technique was implemented in four banks in Iran as a pilot. First, proper criteria for banking industry are identified considering BSC and CSR. Consequently, analytic hierarchy process (AHP) and modified digital logic (MDL) techniques are used to determine the weights of criteria. The banks are ranked by fuzzy TOPSIS (FTOPSIS) and fuzzy VIKOR (FVIKOR). Using a combination of these techniques, four methods, namely, AHP-FTOPSIS, AHP-FVIKOR, MDL-FTOPSIS and MDL-FVIKOR, are obtained, each of which provides a different set of rankings for banks. Eventually, the obtained ranks are integrated using the Copeland method. Findings The results showed that the return on investment, debt ratio and lower energy consumption criteria are the most important, and enhancement of brand value, increasing customer loyalty and environmental care criteria have the lowest percentage of importance. Also, the final bank ranking is determined by the proposed method. Originality/value This paper identifies 6 criteria and 25 sub-criteria for evaluating the banks considering BSC and CSR viewpoints including some new sub-criteria that has not been considered before. Moreover, these hybrid approaches and especially MDL techniques have not been used by previous researchers.

Organizational performance measurement by a framework integrating BSC and AHP

2016 ◽  
Vol 65 (7) ◽  
pp. 959-976 ◽  
Author(s):  
Tahere Yaghoobi ◽  
Firoozeh Haddadi
Keyword(s):  
Performance Evaluation ◽  
Performance Measurement ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Evaluation Model ◽  
Telecommunications Industry ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Financial Perspective ◽  
And Performance

Purpose Performance measurement, especially at the enterprise level, requires intense consideration of experts and managers in organizations from both theoretical and practical aspects. The purpose of this paper is to investigate the overall organizational performance by developing a performance evaluation model, based on integrating two methodologies of balanced scorecard (BSC) – a multiple perspective plan for performance assessment – and analytic hierarchy process (AHP) – a structured technique for organizing and analyzing complex decisions. Design/methodology/approach The method was conducted in Isfahan Telecommunications Company (ITC), in 2013. In total, 27 managers of ITC were invited to participate. First, according to overall firm goals, key performance indicators (KPIs) were established with respect to four perspectives of BSC framework. Then pairwise comparisons were done, through standard AHP questionnaires, to determine the preference weights of each indicator and perspective and give precedence to them. Findings Organizational performance can be measured by the proposed model in a telecommunications industry. According to the adopted method, company KPIs, relative importance of BSC perspectives and performance evaluation of functional areas were identified. Practical implications This study provides guidance regarding strategies for improving organizational performance beyond the financial perspective. Originality/value Previous studies illustrate various applications of joint BSC and AHP. However, this study applies the integrated framework throughout an organization in a new application field and shows not only company’s features but also telecommunications industry features.

Evaluating hotel websites through the use of fuzzy AHP and fuzzy TOPSIS

2020 ◽  
Vol 13 (12) ◽  
pp. 3747-3765
Author(s):  
Rahmi Baki
Keyword(s):  
Information Quality ◽  
Fuzzy Ahp ◽  
Fuzzy Topsis ◽  
Step Method ◽  
Analytic Hierarchy ◽  
Website Evaluation ◽  
Content Type ◽  
Ideal Situation ◽  
Order Preference ◽  
Hotel Websites

Purpose The purpose of this study is to develop a useful, effective and comprehensive approach to facilitate the evaluation of hotel websites. Design/methodology/approach The paper examines the literature evaluating e-commerce sites, particularly that is focused on hotel, tourism and travel. Moreover, 5 criteria and 19 sub-criteria are identified, and a two-step method is proposed for the assessment of hotel websites whereby the global weights of the proposed criteria are determined by the fuzzy analytic hierarchy process, and hotel websites are ranked through the fuzzy technique for order preference by similarity to ideal situation. Findings The results show that the leading criteria to effectively evaluate hotel websites are trust and information quality and that the most important sub-criteria are special discounts, assurance and reservation information. Practical implications This research offers practical advice to increase understanding of the determinants of an effective hotel website so that appropriate strategies can be developed to convert a website visitor into a customer. Originality/value The study aims to contribute to businesses operating in the tourism sector which seeks to increase the effectiveness of their websites by identifying criteria and proposing a methodology for hotel website evaluation.

Exploring integrated reporting in the banking industry: the multiple capitals approach

2019 ◽  
Vol 20 (1) ◽  
pp. 165-188 ◽  
Author(s):  
Federica Doni ◽  
Mikkel Larsen ◽  
Silvio Bianchi Martini ◽  
Antonio Corvino
Keyword(s):  
Balanced Scorecard ◽  
Banking Industry ◽  
Natural Capital ◽  
Balance Sheet ◽  
Innovative Approach ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Trade Offs

Purpose The purpose of this paper is to investigate the engagement with integrated reporting (IR) of the Development Bank of Singapore (DBS), as one of the banks that pioneered IR. Banking industry members face critical sector-specific issues regarding the use of capitals, especially the disclosure of relational and natural capital-related information, and reporting of the outcomes of capitals. This study examines an innovative approach to accounting for multiple capitals adopted by DBS during its journey toward IR. Design/methodology/approach This empirical research follows the case study method, using semi-structured interviews with DBS’s managers, and analyzing reports and other documentation. Findings The authors find that DBS re-conceptualizes, re-categorizes and measures multiple capitals as a form of non-financial value using the balance sheet approach to make visible the interactions and potential tensions (trade-offs) among capitals. Research limitations/implications Case studies are best used to understand a specific context, so the findings of this study cannot be generalized statistically. However, the study does provide insights into the banking industry that may be applicable to other organizations. Practical implications The categorization and reporting of multiple capitals using the balance sheet approach and the integration of the balanced scorecard are innovative operationalizations of the International <IR> Framework. Originality/value This study provides an innovative approach to the categorization and measurement of multiple capitals. It represents a step toward reducing the gap between research and practice on IR.

An integrated AHP-based scheme for performance measurement in humanitarian supply chains

2019 ◽  
Vol 68 (5) ◽  
pp. 938-957 ◽  
Author(s):  
Ali Anjomshoae ◽  
Adnan Hassan ◽  
Kuan Yew Wong
Keyword(s):  
Performance Measurement ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Performance Indicators ◽  
Information Overload ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Humanitarian Supply Chains ◽  
Humanitarian Organizations ◽  
Integrated Performance

Purpose In recent years, several performance indicators have been proposed in humanitarian supply chains (HSCs). Selecting the most relevant key performance indicators (KPIs) is challenging for some humanitarian organizations (HOs) because it involves a considerable amount of complexity and information overload which could lead to judgment biases in the decision-making process. Existing performance measurement studies lack critical analysis for prioritization of performance indicators. Since the process of KPIs selection and categorization is a complex, domain based and subjective process, a systematic guideline is needed. To address this gap, the purpose of this paper is to propose an integrated performance measurement scheme that can consolidate KPIs into an overall performance score based on the weighting of the performance indicators in HSCs. Design/methodology/approach Data collection was based on questionnaire surveys and direct interviews with practitioners from international HOs. Findings This paper proposes an integrated scheme based on balanced scorecard and analytic hierarchy process for performance evaluation of HOs. Research limitations/implications The respondents were limited to the humanitarian logistics experts from Malaysian-based international HOs. Practical implications The scheme enables the benchmarking of HOs’ performance that could be useful for decision makers in HSCs. Originality/value This paper provides the ranking and prioritization of KPIs in HSCs. The approach presented in this paper enables an effective and integrated performance measurement in HSCs.

KCEBSA

2017 ◽  
Vol 30 (4) ◽  
pp. 625-643 ◽  
Author(s):  
Shu-Chen Kao ◽  
ChienHsing Wu ◽  
Chieh-Lin Huang
Keyword(s):  
Balanced Scorecard ◽  
Delphi Method ◽  
Evaluation Model ◽  
Practical Case ◽  
Analytic Hierarchy ◽  
Qualitative Variable ◽  
Content Type ◽  
Knowledge Community ◽  
Internal Process ◽  
Community Evaluation

Purpose From the academic perspective, there are challenges to develop an appropriate evaluation model that is linked to both theoretical and professional viewpoints for online knowledge community evaluation (KCE). These challenges are mainly the evaluation principles, the method used to derive the evaluation items, and the techniques used to determine the importance of evaluation items to formulate the evaluation model. The purpose of this paper is to propose and develop an online KCE model by considering the Delphi method, analytic hierarchy process (AHP) technique, and balanced scorecard (BSC) approach that contains facets of member, strategy, learning and growth, and internal process. Design/methodology/approach The qualitative study was used to develop the KCE model. The BSC approach was used to construct the facets of evaluation model. The Delphi method and AHP technique were utilized to derive structural measure items and to determine item weight in the development process, respectively. An illustrated practical case was used to demonstrate the proposed KCE model. Findings The member facet is perceived the most important facet while the internal process the least, implying that the invited participants perceive that community members, as represented by member satisfaction and loyalty, are the most important factors. In the knowledge management process sub-facet, knowledge creation obtains the highest weight compared with knowledge acquisition, dissemination, and utilization. Data analysis results based on 822 survey samples for the demonstrated Yahoo!Kimo Knowledge+ case are obtained. Findings and implications are also addressed. Originality/value Unlike the exclusively quantitative approach, the proposed KCE model balances both qualitative and quantitative approaches. First, it performed a face-to-face collaboration based on the Delphi method to deal with the unstructured cognition, opinions, and comments of the invited participants. Second, it developed an evaluation model based on the consensus of the invited participants by using the AHP technique in which the perceived importance of measure item to their immediate super item (qualitative variable) is transformed into number (quantitative variable).

Hierarchy the sectorial performance indicators for Brazilian franchises

2015 ◽  
Vol 21 (1) ◽  
pp. 190-204
Author(s):  
Alvaro Luiz Neuenfeldt Júnior ◽  
Julio Cezar Mairesse Siluk ◽  
Marlon Soliman ◽  
Elpídio Oscar Benitez Nara ◽  
Liane Mahlmann Kipper
Keyword(s):  
Performance Indicators ◽  
Multiple Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Measurement Systems ◽  
Scientific Papers ◽  
Performance Measurement Systems ◽  
Hierarchy Process ◽  
Level Of Importance ◽  
Practical Implications

Purpose – The purpose of this paper is to study the level of importance existing among the indicators that were previously defined for a Performance Measurement Systems (PMS) and are relative to franchises in Brazil, using the Analytic Hierarchy Process (AHP) methodology, together with a series of tests, which are responsible by verifying the degree of reliability, robustness and stability of the parameters used and the results obtained. As a result, the author suggests that the diagnosing of the five delimited indicators have different relevance assigned to them. Design/methodology/approach – This paper reviews extant literatures in Franchise, PMS, Multiple Criteria Decision Making (MCDM), in specific the theory about AHP. Findings – The authors found that it was possible justified, for both the relative and the evaluative method, that the I3 was the main point of the system and, as a consequence, be considered as priority when talking about sectorial development of franchises in Brazil. As for the other indicators, even being located in a level lower than I3, they must be taken into contemplation in these measurements, however, with a relatively inferior importance degree. Practical implications – It was possible to better comprehend which economics and non-economic factors selected have a more predominance in the Brazilian franchise context, according to characteristics of the companies present. Originality/value – The absence of scientific papers that describe the relevance level of the main factors that influence in the Brazilian franchise system.

Improving risk evaluation in FMEA with a hybrid multiple criteria decision making method

2015 ◽  
Vol 32 (7) ◽  
pp. 763-782 ◽  
Author(s):  
Hu-Chen Liu ◽  
Jian-Xin You ◽  
Xue-Feng Ding ◽  
Qiang Su
Keyword(s):  
Decision Making ◽  
Failure Modes ◽  
Multiple Criteria Decision Making ◽  
Multiple Criteria ◽  
Analytic Hierarchy ◽  
Effect Analysis ◽  
Maintenance Strategies ◽  
Content Type ◽  
Safety And Reliability ◽  
Hierarchy Process

Purpose – The purpose of this paper is to develop a new failure mode and effect analysis (FMEA) framework for evaluation, prioritization and improvement of failure modes. Design/methodology/approach – A hybrid multiple criteria decision-making method combining VIKOR, decision-making trial and evaluation laboratory (DEMATEL) and analytic hierarchy process (AHP) is used to rank the risk of the failure modes identified in FMEA. The modified VIKOR method is employed to determine the effects of failure modes on together. Then the DEMATEL technique is used to construct the influential relation map among the failure modes and causes of failures. Finally, the AHP approach based on the DEMATEL is utilized to obtain the influential weights and give the prioritization levels for the failure modes. Findings – A case study of diesel engine’s turbocharger system is provided to illustrate the potential application and benefits of the proposed FMEA approach. Results show that the new risk priority model can be effective in helping analysts find the high risky failure modes and create suitable maintenance strategies. Practical implications – The proposed FMEA can overcome the shortcomings and improve the effectiveness of the traditional FMEA. Particularly, the dependence and interactions between different failure modes and effects have been addressed by the new failure analysis method. Originality/value – This paper presents a systemic analytical model for FMEA. It is able to capture the complex interrelationships among various failure modes and effects and provide guidance to analysts by setting the suitable maintenance strategies to improve the safety and reliability of complex systems.

Determining quantitative targets for performance measures in the balanced scorecard method using response surface methodology

2018 ◽  
Vol 56 (9) ◽  
pp. 2006-2037 ◽  
Author(s):  
Sorour Farokhi ◽  
Emad Roghanian
Keyword(s):  
Response Surface Methodology ◽  
Performance Evaluation ◽  
Response Surface ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Decision Makers ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Map ◽  
Optimal Values

Purpose The purpose of this paper is to propose a quantitative methodology for setting targets in the framework of Balanced Scorecard (BSC) in order to achieve vision and goals. Design/methodology/approach Response Surface Methodology is proposed to find the significant relationships that should be included in the strategy map and the optimal values of performance measures are assessed by using the desirability function-based approach of RSM. The proposed method was created by reviewing the existing literature, modeling the problem, and applying it in an oil company. In fact, RSM is used to execute the design matrix, analyze the collected data, extract models, analyze the results, and optimize the procedures that generate multiple responses. Findings By applying this methodological design, a clearer picture of the relationships between strategic objectives is obtained and the influence of strategic objectives on one another is determined. Afterward, optimal values for performance measures are determined. Research limitations/implications This paper proposes a framework for constructing a strategy map and setting quantitative targets to translate the goals and strategies into corresponding performance measures and targets. Also, this paper presents a case study to demonstrate the applicability and effectiveness of the proposed approach. However, RSM-based techniques require a greater amount of data to generate more accurate results. Although the advent of the Information Age has forced organizations’ decision makers to provide sufficient information and data for business analysis, the data requirements of RSM-based techniques are met. Practical implications In practice, the process of setting targets for performance measures can be challenging in terms of reaching a consensus between managers and decision makers. The findings of this paper can offer a new approach for performance evaluation based on the BSC which allows the organization’s decision makers to reach a more accurate picture of the relationship model between organization goals and those objectives within the BSC. It also demonstrates how decision makers can be guided in the process of defining performance target values in the BSC method. Originality/value Reviewing the literature on setting quantitative targets within the framework of the BSC showed no prior study in which RSM is used. This approach has two main contributions: the associations among strategic objectives are investigated and obtained in an effective way which analytically identifies the direction and degree of the relations among the performance measures. Considering the performance evaluation structure based on the BSC, quantitative targets have been determined to help in achieving the long-term goals of the organization. The application of the proposed method in a company showed that the contributions of this research are not only theoretical, but practical as well.

Development of a balanced scorecard-based supplier collaborative performance index

2018 ◽  
Vol 67 (2) ◽  
pp. 401-425 ◽  
Author(s):  
Manoj Hudnurkar ◽  
Urvashi Rathod ◽  
Suresh Kumar Jakhar ◽  
Omkarprasad S. Vaidya
Keyword(s):  
Balanced Scorecard ◽  
Performance Index ◽  
Specific Factor ◽  
Exploratory Research ◽  
Manufacturing Companies ◽  
Decision Framework ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Collaborative Performance

Purpose The purpose of this paper is to design and develop a balanced scorecard (BSC)-based index for quantifying the suitability of suppliers to mature to the next level of collaboration with the buyer company. Design/methodology/approach A BSC-based decision framework was developed using factors and factor indicators affecting collaboration with the supplier, using exploratory research. The proposed decision framework was implemented as a real-world case study in an Indian manufacturing organisation by using the Analytic Hierarchy Process. An 11-step methodology was developed to quantify supplier suitability to mature to the next level of collaboration. This is referred to as the “supplier collaborative performance index” (SCPI). Findings The proposed decision-making framework helps quantify the extent of collaboration with each supplier. It serves as an index by using the perspectives that are significant for the strategic performance of the buyer company, the factors that affect the collaboration and their specific factor indicators. The initial results of the implementation of the case study were found to be useful in judging supplier suitability in order to mature in their relationship. Practical implications A comprehensive BSC-based framework for enhancing relationships with suppliers, SCPI will be instrumental in deciding, managing and improving the level of collaboration with suppliers in manufacturing companies, depending on priorities. Originality/value This approach provides a single index to establish the supplier’s suitability to mature to the next level of collaboration with a buyer company. The higher the value of the Collaboration Index for a supplier, the better is the chance to move to the next level of maturity.

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