Combining fuzzy MCDM with BSC approach in performance evaluation of Iranian private banking sector

Authors:
Meysam Shaverdi;Mahsa Akbari;Saeed Fallah Tafti
Affiliations:
Department of management, Islamic Azad University, Ilam, Iran;Department of management, Islamic Azad University, Ilam, Iran;Department of management, Tarbiat Modares University, Tehran, Iran
Venue:
Advances in Fuzzy Systems - Special issue on Fuzzy Functions, Relations, and Fuzzy Transforms: Theoretical Aspects and Applications to Fuzzy Systems
Year:
2011

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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 "C" has the most significant BSC perspectives and the customer satisfaction "C1" is themost 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.