IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v112y2022ics0305048322000974.html
   My bibliography  Save this article

A novel LOPCOW‐DOBI multi‐criteria sustainability performance assessment methodology: An application in developing country banking sector

Author

Listed:
  • Ecer, Fatih
  • Pamucar, Dragan

Abstract

Banks do not directly contribute to sustainable development, yet they indirectly play an undeniable role. The sustainability of the banking sector, which is the heart of finance, is crucial both for this sector and economy as well as for the realization of the 2030 sustainable development goals. Despite the growing interest of practitioners and scholars on this issue, previous works are rare for developing countries. With a novel multi-criteria framework developed, therefore, this paper assesses banks in terms of sustainability and clarifies their levels of corporate sustainability performances. For the first time, this work introduces an objective weighting method named LOgarithmic Percentage Change-driven Objective Weighting (LOPCOW) with the advantages of eliminating the gap due to the size of the data, generating more reasonable weightings, and considering both positive and negative data in the weighting process. Further, a new multi-criteria method named DOmbi Bonferroni (DOBI) is developed and utilized for deciding the ranking of the alternatives. The technique provides flexible decision-making, considering the risk attitude of decision-makers. The applicability of the proposed framework is demonstrated by a case study of Turkish banks. Banks are analyzed regarding the three pillars of sustainability and their seventeen drivers. The environmental pillar indicates the top significant impact on banks' sustainability. The “average return on shareholders' equity”, “electricity consumption”, “number of branches,” and “number of staff” are the top four key drivers for banks' sustainability. As a result of ranking the nine banks that release sustainability reports in Turkey concerning their sustainability performances, it is highlighted that Garanti BBVA outperforms the others. With a comprehensive sensitivity check, the robustness and applicability of the model are further tested. The developed decision support tool could allow different organizations to conduct sustainability assessments under the main pillars and help monitor their improvement over time. Some political and managerial implications are as well mentioned.

Suggested Citation

  • Ecer, Fatih & Pamucar, Dragan, 2022. "A novel LOPCOW‐DOBI multi‐criteria sustainability performance assessment methodology: An application in developing country banking sector," Omega, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:jomega:v:112:y:2022:i:c:s0305048322000974
    DOI: 10.1016/j.omega.2022.102690
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048322000974
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2022.102690?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Böyükaslan, Adem & Ecer, Fatih, 2021. "Determination of drivers for investing in cryptocurrencies through a fuzzy full consistency method-Bonferroni (FUCOM-F’B) framework," Technology in Society, Elsevier, vol. 67(C).
    2. Ahi, Payman & Searcy, Cory & Jaber, Mohamad Y., 2018. "A Quantitative Approach for Assessing Sustainability Performance of Corporations," Ecological Economics, Elsevier, vol. 152(C), pages 336-346.
    3. Nizam, Esma & Ng, Adam & Dewandaru, Ginanjar & Nagayev, Ruslan & Nkoba, Malik Abdulrahman, 2019. "The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector," Journal of Multinational Financial Management, Elsevier, vol. 49(C), pages 35-53.
    4. Chavosh Nejad, Mohammad & Mansour, Saeed & Karamipour, Azita, 2021. "An AHP-based multi-criteria model for assessment of the social sustainability of technology management process: A case study in banking industry," Technology in Society, Elsevier, vol. 65(C).
    5. Avkiran, Necmi K., 2011. "Association of DEA super-efficiency estimates with financial ratios: Investigating the case for Chinese banks," Omega, Elsevier, vol. 39(3), pages 323-334, June.
    6. Edmundas Kazimieras Zavadskas & Valentinas Podvezko, 2016. "Integrated Determination of Objective Criteria Weights in MCDM," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 267-283, March.
    7. Nobanee, Haitham & Ellili, Nejla, 2016. "Corporate sustainability disclosure in annual reports: Evidence from UAE banks: Islamic versus conventional," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1336-1341.
    8. Xie, Qiwei & Xu, Qifan & Chen, Lifan & Jin, Xi & Li, Siqi & Li, Yongjun, 2022. "Efficiency evaluation of China's listed commercial banks based on a multi-period leader-follower model," Omega, Elsevier, vol. 110(C).
    9. Zahid, Muhammad & Rahman, Haseeb Ur & Ullah, Zabeeh & Muhammad, Ali, 2021. "Sustainability and branchless banking: The development and validation of a distinct measurement scale," Technology in Society, Elsevier, vol. 67(C).
    10. Sonia Rebai & Mohamed Naceur Azaiez & Dhafer Saïdane, 2016. "A multi-attribute utility model for generating a sustainability index in the banking sector," Post-Print hal-01744485, HAL.
    11. Aracil, Elisa & Nájera-Sánchez, Juan-José & Forcadell, Francisco Javier, 2021. "Sustainable banking: A literature review and integrative framework," Finance Research Letters, Elsevier, vol. 42(C).
    12. Ke Chen & Yi Pan, 2020. "Sustainability of China’s listed commercial banks under background of the ‘new normal’," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 27(6), pages 685-702, November.
    13. Chandra, Dheeraj & Kumar, Dinesh, 2021. "Evaluating the effect of key performance indicators of vaccine supply chain on sustainable development of mission indradhanush: A structural equation modeling approach," Omega, Elsevier, vol. 101(C).
    14. Nicholas Igbudu & Zanete Garanti & Temitope Popoola, 2018. "Enhancing Bank Loyalty through Sustainable Banking Practices: The Mediating Effect of Corporate Image," Sustainability, MDPI, vol. 10(11), pages 1-11, November.
    15. Liu, Xianliang & Ma, Yonghao, 2021. "A method to analyze the rank reversal problem in the ELECTRE II method," Omega, Elsevier, vol. 102(C).
    16. Kao, Chiang & Liu, Shiang-Tai, 2014. "Multi-period efficiency measurement in data envelopment analysis: The case of Taiwanese commercial banks," Omega, Elsevier, vol. 47(C), pages 90-98.
    17. J S Liu & W-M Lu, 2012. "Network-based method for ranking of efficient units in two-stage DEA models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(8), pages 1153-1164, August.
    18. Mehdi KESHAVARZ GHORABAEE & Edmundas Kazimieras ZAVADSKAS & Zenonas TURSKIS & Jurgita ANTUCHEVICIENE, 2016. "A New Combinative Distance-Based Assessment(Codas) Method For Multi-Criteria Decision-Making," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(3), pages 25-44.
    19. Lloret, Antonio, 2016. "Modeling corporate sustainability strategy," Journal of Business Research, Elsevier, vol. 69(2), pages 418-425.
    20. Mi, Xiaomei & Tang, Ming & Liao, Huchang & Shen, Wenjing & Lev, Benjamin, 2019. "The state-of-the-art survey on integrations and applications of the best worst method in decision making: Why, what, what for and what's next?," Omega, Elsevier, vol. 87(C), pages 205-225.
    21. Ng, Artie W. & Nathwani, Jatin, 2012. "Sustainability performance disclosures: The case of independent power producers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 1940-1948.
    22. Remigiusz Tunowski, 2020. "Sustainability of Commercial Banks Supported by Business Intelligence System," Sustainability, MDPI, vol. 12(11), pages 1-17, June.
    23. Taneja, Shilpa & Ali, Liaqat, 2021. "Determinants of customers’ intentions towards environmentally sustainable banking: Testing the structural model," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    24. Liang, Lien-Wen & Chang, Hai-Yen & Shao, Hao-Ling, 2018. "Does sustainability make banks more cost efficient?," Global Finance Journal, Elsevier, vol. 38(C), pages 13-23.
    25. Zbigniew Korzeb & Reyes Samaniego-Medina, 2019. "Sustainability Performance. A Comparative Analysis in the Polish Banking Sector," Sustainability, MDPI, vol. 11(3), pages 1-16, January.
    26. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    27. Mohammadi, Majid & Rezaei, Jafar, 2020. "Bayesian best-worst method: A probabilistic group decision making model," Omega, Elsevier, vol. 96(C).
    28. Hutton Barron & Charles P. Schmidt, 1988. "Sensitivity Analysis of Additive Multiattribute Value Models," Operations Research, INFORMS, vol. 36(1), pages 122-127, February.
    29. Kusi-Sarpong, Simonov & Orji, Ifeyinwa Juliet & Gupta, Himanshu & Kunc, Martin, 2021. "Risks associated with the implementation of big data analytics in sustainable supply chains," Omega, Elsevier, vol. 105(C).
    30. Mališa Žižović & Dragan Pamučar & Miloljub Albijanić & Prasenjit Chatterjee & Ivan Pribićević, 2020. "Eliminating Rank Reversal Problem Using a New Multi-Attribute Model—The RAFSI Method," Mathematics, MDPI, vol. 8(6), pages 1-16, June.
    31. Rezaei, Jafar, 2015. "Best-worst multi-criteria decision-making method," Omega, Elsevier, vol. 53(C), pages 49-57.
    32. Mulliner, Emma & Malys, Naglis & Maliene, Vida, 2016. "Comparative analysis of MCDM methods for the assessment of sustainable housing affordability," Omega, Elsevier, vol. 59(PB), pages 146-156.
    33. Moufty, Souad & Clark, Ephraim & Al-Najjar, Basil, 2021. "The different dimensions of sustainability and bank performance: Evidence from the EU and the USA," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 43(C).
    34. Arthur Jin Lin & Hai-Yen Chang, 2019. "Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach," Sustainability, MDPI, vol. 11(8), pages 1-26, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wenyao Niu & Yuan Rong & Liying Yu & Lu Huang, 2022. "A Novel Hybrid Group Decision Making Approach Based on EDAS and Regret Theory under a Fermatean Cubic Fuzzy Environment," Mathematics, MDPI, vol. 10(17), pages 1-30, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. K. Koppiahraj & S. Bathrinath & V. G. Venkatesh & Venkatesh Mani & Yangyan Shi, 2023. "Optimal sustainability assessment method selection: a practitioner perspective," Annals of Operations Research, Springer, vol. 324(1), pages 629-662, May.
    2. Zsombor Szádoczki & Sándor Bozóki & Patrik Juhász & Sergii V. Kadenko & Vitaliy Tsyganok, 2023. "Incomplete pairwise comparison matrices based on graphs with average degree approximately 3," Annals of Operations Research, Springer, vol. 326(2), pages 783-807, July.
    3. Kusi-Sarpong, Simonov & Orji, Ifeyinwa Juliet & Gupta, Himanshu & Kunc, Martin, 2021. "Risks associated with the implementation of big data analytics in sustainable supply chains," Omega, Elsevier, vol. 105(C).
    4. Babak Daneshvar Rouyendegh & Kazim Topuz & Ali Dag & Asil Oztekin, 2019. "An AHP-IFT Integrated Model for Performance Evaluation of E-Commerce Web Sites," Information Systems Frontiers, Springer, vol. 21(6), pages 1345-1355, December.
    5. Murad, C.A. & Bellinello, M.M. & Silva, A.J. & Netto, A. Caminada & de Souza, G.F.M. & Nabeta, S.I., 2022. "A novel methodology employed for ranking and consolidating performance indicators in holding companies with multiple power plants based on multi-criteria decision-making method," Operations Research Perspectives, Elsevier, vol. 9(C).
    6. Bai, Chunguang & Zhu, Qingyun & Sarkis, Joseph, 2021. "Joint blockchain service vendor-platform selection using social network relationships: A multi-provider multi-user decision perspective," International Journal of Production Economics, Elsevier, vol. 238(C).
    7. Mohammadi, Majid & Rezaei, Jafar, 2020. "Bayesian best-worst method: A probabilistic group decision making model," Omega, Elsevier, vol. 96(C).
    8. Xie, Qiwei & Xu, Qifan & Chen, Lifan & Jin, Xi & Li, Siqi & Li, Yongjun, 2022. "Efficiency evaluation of China's listed commercial banks based on a multi-period leader-follower model," Omega, Elsevier, vol. 110(C).
    9. Saif-Alyousfi, Abdulazeez Y.H. & Saha, Asish & Alshammari, Turki Rashed, 2023. "Bank diversification and ESG activities: A global perspective," Economic Systems, Elsevier, vol. 47(3).
    10. Amin Vafadarnikjoo & Madjid Tavana & Tiago Botelho & Konstantinos Chalvatzis, 2020. "A neutrosophic enhanced best–worst method for considering decision-makers’ confidence in the best and worst criteria," Annals of Operations Research, Springer, vol. 289(2), pages 391-418, June.
    11. Burak Can Altay & Abdullah Erdem Boztas & Abdullah Okumuş & Muhammet Gul & Erkan Çelik, 2023. "How Will Autonomous Vehicles Decide in Case of an Accident? An Interval Type-2 Fuzzy Best–Worst Method for Weighting the Criteria from Moral Values Point of View," Sustainability, MDPI, vol. 15(11), pages 1-20, June.
    12. Heidary Dahooie, Jalil & Qorbani, Ali Reza & Daim, Tugrul, 2021. "Providing a framework for selecting the appropriate method of technology acquisition considering uncertainty in hierarchical group decision-making: Case Study: Interactive television technology," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    13. Markus Riegler, 2023. "Towards a definition of sustainable banking - a consolidated approach in the context of guidelines and strategies," International Journal of Corporate Social Responsibility, Springer, vol. 8(1), pages 1-26, December.
    14. Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Valentinas Podvezko & Ieva Ubarte & Arturas Kaklauskas, 2017. "MCDM Assessment of a Healthy and Safe Built Environment According to Sustainable Development Principles: A Practical Neighborhood Approach in Vilnius," Sustainability, MDPI, vol. 9(5), pages 1-30, April.
    15. Vaneet Bhatia & Sankarshan Basu & Subrata Kumar Mitra & Pradyumna Dash, 2018. "A review of bank efficiency and productivity," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 557-600, November.
    16. Sarfaraz Hashemkhani Zolfani & Ramin Bazrafshan & Fatih Ecer & Çağlar Karamaşa, 2022. "The Suitability-Feasibility-Acceptability Strategy Integrated with Bayesian BWM-MARCOS Methods to Determine the Optimal Lithium Battery Plant Located in South America," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    17. Liang, Fuqi & Brunelli, Matteo & Rezaei, Jafar, 2020. "Consistency issues in the best worst method: Measurements and thresholds," Omega, Elsevier, vol. 96(C).
    18. Dilupa Nakandala & Yung Po Tsang & Henry Lau & Carman Ka Man Lee, 2022. "An Industrial Blockchain-Based Multi-Criteria Decision Framework for Global Freight Management in Agricultural Supply Chains," Mathematics, MDPI, vol. 10(19), pages 1-23, September.
    19. Kik, M.C. & Claassen, G.D.H. & Meuwissen, M.P.M. & Smit, A.B. & Saatkamp, H.W., 2021. "Actor analysis for sustainable soil management – A case study from the Netherlands," Land Use Policy, Elsevier, vol. 107(C).
    20. Zheng Yuan & Baohua Wen & Cheng He & Jin Zhou & Zhonghua Zhou & Feng Xu, 2022. "Application of Multi-Criteria Decision-Making Analysis to Rural Spatial Sustainability Evaluation: A Systematic Review," IJERPH, MDPI, vol. 19(11), pages 1-31, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:112:y:2022:i:c:s0305048322000974. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.