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Analysis of Innovation Performance for Retail Banking Industry With the Hybrid Fuzzy Decision-Making Approach

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  • Shubin Wang
  • Qilei Liu
  • Hasan Dinçer
  • Serhat Yüksel

Abstract

This study aims to evaluate the innovation performance of the Turkish banking industry. For this purpose, eight different financial and nonfinancial criteria are identified as a result of literature review. Moreover, five biggest Turkish deposit banks are selected as alternatives. Interval type 2 fuzzy decision-making trial and evaluation laboratory (IT2 FDEMATEL) is taken into account to weight the dimensions. On the other side, to rank the alternatives, interval type 2 fuzzy Vise Kriterijumska Optimizacija I Kompromisno Resenje (IT2 FVIKOR) approach is considered. The findings show that market share and return on investment are the most important factors in the innovation performance of retail banking services. This situation gives information that the when banks are more successful in the market, they can make investment to the innovation more effectively. The main reason is that these banks have enough capacity to make this kind of investments. Thus, it is recommended that Turkish banks should first make an efficiency analysis to increase their profit margin so that their capacities can be improved. For this purpose, many different factors should be taken into account by Turkish banks, such as personnel competency and technological development. Within this scope, these banks should make financial analysis of the innovation effectively by generating a qualified team. However, necessary research and development activities should be conducted to reach this objective. Hence, it can be possible to minimize ineffective innovation for the banks.

Suggested Citation

  • Shubin Wang & Qilei Liu & Hasan Dinçer & Serhat Yüksel, 2020. "Analysis of Innovation Performance for Retail Banking Industry With the Hybrid Fuzzy Decision-Making Approach," SAGE Open, , vol. 10(2), pages 21582440209, May.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020927425
    DOI: 10.1177/2158244020927425
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    References listed on IDEAS

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    1. Huang, Tai-Hsin & Hu, Chu-Nan & Chang, Bao-Guang, 2018. "Competition, efficiency, and innovation in Taiwan’s banking industry — An application of copula methods," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 362-375.
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    5. Shubin Wang & Weijie Li & Hasan Dincer & Serhat Yuksel, 2019. "Recognitive Approach to the Energy Policies and Investments in Renewable Energy Resources via the Fuzzy Hybrid Models," Energies, MDPI, vol. 12(23), pages 1-17, November.
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    1. Pei-Hsuan Tsai & Chih-Jou Chen & Ho-Chin Yang, 2021. "Using Porter’s Diamond Model to Assess the Competitiveness of Taiwan’s Solar Photovoltaic Industry," SAGE Open, , vol. 11(1), pages 21582440209, January.

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