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Competitive strategy selection in the European banking sector using a hybrid decision-making approach

Author

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  • Hasan Dinçer

    (Istanbul Medipol University, School of Business and Management, Beykoz, 34810, Istanbul, Turkey)

  • Ozlem Olgu Akdeniz

    (Manchester Metropolitan University, Business School, Manchester, United Kingdom)

  • Umit Hacioglu

    (Istanbul Medipol University, School of Business and Management, Beykoz, 34810, Istanbul, Turkey)

Abstract

Strategic planning is an effective tool for long-term planning and utilized by organizations and industries to achieve competitive advantage. Addressing difficulties that the European banking sector struggled during and after the global financial crisis (GFC), the purpose of this paper is to raise important questions about the sustainability of the sector and offers competitive strategy formulations for European policy makers. Empirical findings are accomplished by applying a three phase analysis of SWOT, an integrated model of DEMATEL-ANP (DANP), and fuzzy TOPSIS. Empirical findings from the SWOT analysis suggest a total of twelve factors, which are then incorporated to formulate four strategies. The DANP results illustrate that opportunities dimension has the highest impact and strengths has the lowest among others. The fuzzy TOPSIS results demonstrate that “the European Banking Union (EBU) is expected to remove divergence in the Euro area banking sector” is the most important strategy, whilst “the non-risk based leverage ratio (LR) requirement by Basel III” has the weakest importance among the strategy preferences.

Suggested Citation

  • Hasan Dinçer & Ozlem Olgu Akdeniz & Umit Hacioglu, 2018. "Competitive strategy selection in the European banking sector using a hybrid decision-making approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 213-242.
    • Handle: RePEc:rfe:zbefri:v:36:y:2018:i:1:p:213-242
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    More about this item

    Keywords

    DANP; fuzzy TOPSIS; strategy; competition; European Banking Sector;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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