IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211036080.html
   My bibliography  Save this article

Sustainability in the Business Sector: A Fuzzy Multicriteria Decision-Making Model for Financial Leasing Company Selection of the Vietnamese SMEs

Author

Listed:
  • Fengsheng Chien
  • Chia-Nan Wang
  • Ka Yin Chau
  • Van Thanh Nguyen
  • Viet Tinh Nguyen

Abstract

The uses and management of capital is extremely important to the operation of any businesses. However, not all businesses have available capital, so the use of loans in many different forms is always an effective solution in managing corporate finance. Accompanying with businesses, many financial leasing companies have implemented products and programs to lend money to businesses with low interest rates. So, choosing the best financial leasing company is a primary concern of businesses. To increase competitiveness, financial leasing companies often offer preferential conditions to attract businesses. Choosing the best financial leasing service to leasing is important and necessary to those businesses. Thus, the selection of a financial leasing company by small and medium enterprises benefits from the application of Multicriteria Decision-Making (MCDM) methods which allows the decision maker to consider various qualitative and quantitative criteria. In this article, the author applied Fuzzy Analytical Network Process (FANP) to calculate the related criteria weights of the financial leasing company selection problem of businesses. Then, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is applied to rank the potential decision-making units. This research establishes one complete and efficient model for financial leasing company selection using FANP and TOPSIS methods. The proposed model is then applied into a real-world case study to demonstrate its feasibility.

Suggested Citation

  • Fengsheng Chien & Chia-Nan Wang & Ka Yin Chau & Van Thanh Nguyen & Viet Tinh Nguyen, 2021. "Sustainability in the Business Sector: A Fuzzy Multicriteria Decision-Making Model for Financial Leasing Company Selection of the Vietnamese SMEs," SAGE Open, , vol. 11(3), pages 21582440211, July.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:3:p:21582440211036080
    DOI: 10.1177/21582440211036080
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440211036080
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440211036080?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
    ---><---

    References listed on IDEAS

    as
    1. Qun Zhao & Pei-Hsuan Tsai & Jin-Long Wang, 2019. "Improving Financial Service Innovation Strategies for Enhancing China’s Banking Industry Competitive Advantage during the Fintech Revolution: A Hybrid MCDM Model," Sustainability, MDPI, vol. 11(5), pages 1-29, March.
    2. Steuer, Ralph E. & Na, Paul, 2003. "Multiple criteria decision making combined with finance: A categorized bibliographic study," European Journal of Operational Research, Elsevier, vol. 150(3), pages 496-515, November.
    3. Begoña Gutiérrez-Nieto & Carlos Serrano-Cinca & Juan Camón-Cala, 2016. "A Credit Score System for Socially Responsible Lending," Journal of Business Ethics, Springer, vol. 133(4), pages 691-701, February.
    4. Chia-Nan Wang & Van Thanh Nguyen & Hoang Tuyet Nhi Thai & Ngoc Nguyen Tran & Thi Lan Anh Tran, 2018. "Sustainable Supplier Selection Process in Edible Oil Production by a Hybrid Fuzzy Analytical Hierarchy Process and Green Data Envelopment Analysis for the SMEs Food Processing Industry," Mathematics, MDPI, vol. 6(12), pages 1-16, December.
    5. S. Visalakshmi & P. Lakshmi & M.S. Shama & Kamala Vijayakumar, 2015. "An integrated fuzzy DEMATEL-TOPSIS approach for financial performance evaluation of GREENEX industries," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 23(3), pages 340-362.
    6. Aliasghar Aliakbarzadeh & Akbar Alem Tabriz, 2014. "Performance Evaluation and Ranking the Branches of Bank using FAHP and TOPSIS Case study: Tose Asr Shomal Interest-free Loan Fund," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 199-217, December.
    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. Muhammad Jawad Iqbal & Hafiz Muhammad Usman Khizar, 2022. "The Epistemology of Entrepreneurial Responsible Orientation (ERO): Theory, Conceptualization, and Future Research," SAGE Open, , vol. 12(2), pages 21582440221, April.

    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. Shuang Yao & Donghua Yu & Yan Song & Hao Yao & Yuzhen Hu & Benhai Guo, 2018. "Dry Bulk Carrier Investment Selection through a Dual Group Decision Fusing Mechanism in the Green Supply Chain," Sustainability, MDPI, vol. 10(12), pages 1-19, November.
    2. Alptekin Ulutaş & Ayşe Topal & Dragan Pamučar & Željko Stević & Darjan Karabašević & Gabrijela Popović, 2022. "A New Integrated Multi-Criteria Decision-Making Model for Sustainable Supplier Selection Based on a Novel Grey WISP and Grey BWM Methods," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    3. Yi Wang & Yafei Yang & Zhaoxiang Qin & Yefei Yang & Jun Li, 2023. "A Literature Review on the Application of Digital Technology in Achieving Green Supply Chain Management," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    4. Gupta, Pankaj & Mittal, Garima & Mehlawat, Mukesh Kumar, 2013. "Expected value multiobjective portfolio rebalancing model with fuzzy parameters," Insurance: Mathematics and Economics, Elsevier, vol. 52(2), pages 190-203.
    5. Rastegar, Narges & Khorram, Esmaile, 2014. "A combined scalarizing method for multiobjective programming problems," European Journal of Operational Research, Elsevier, vol. 236(1), pages 229-237.
    6. Maciej Nowak, 2010. "Interactive Multicriteria Decision Aiding Under Risk—Methods and Applications," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(1), pages 69-91, October.
    7. Haiyang Shang & Fang Su & Serhat Yüksel & Hasan Dinçer, 2021. "Identifying the Strategic Priorities of the Technical Factors for the Sustainable Low Carbon Industry Based on Macroeconomic Conditions," SAGE Open, , vol. 11(2), pages 21582440211, May.
    8. Ho, William, 2008. "Integrated analytic hierarchy process and its applications - A literature review," European Journal of Operational Research, Elsevier, vol. 186(1), pages 211-228, April.
    9. Sevastjanov, P. & Figat, P., 2007. "Aggregation of aggregating modes in MCDM: Synthesis of Type 2 and Level 2 fuzzy sets," Omega, Elsevier, vol. 35(5), pages 505-523, October.
    10. Qi, Yue & Liao, Kezhi & Liu, Tongyang & Zhang, Yu, 2022. "Originating multiple-objective portfolio selection by counter-COVID measures and analytically instigating robust optimization by mean-parameterized nondominated paths," Operations Research Perspectives, Elsevier, vol. 9(C).
    11. Katerina Fotova Čiković & Ivana Martinčević & Joško Lozić, 2022. "Application of Data Envelopment Analysis (DEA) in the Selection of Sustainable Suppliers: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 14(11), pages 1-30, May.
    12. Altannar Chinchuluun & Panos Pardalos, 2007. "A survey of recent developments in multiobjective optimization," Annals of Operations Research, Springer, vol. 154(1), pages 29-50, October.
    13. Tsai, Pei-Hsuan & Lin, Guan-Yi & Zheng, Yu-Lin & Chen, Yi-Chong & Chen, Pao-Zhen & Su, Zheng-Cheng, 2020. "Exploring the effect of Starbucks' green marketing on consumers' purchase decisions from consumers’ perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    14. Marchioni, Andrea & Magni, Carlo Alberto, 2018. "Investment decisions and sensitivity analysis: NPV-consistency of rates of return," European Journal of Operational Research, Elsevier, vol. 268(1), pages 361-372.
    15. Roger Chapman Burk & Richard M. Nehring, 2023. "An Empirical Comparison of Rank-Based Surrogate Weights in Additive Multiattribute Decision Analysis," Decision Analysis, INFORMS, vol. 20(1), pages 55-72, March.
    16. Zgajnar, Jaka & Kavcic, Stane, 2011. "Weighted Goal Programming and Penalty Functions: Whole-farm Planning Approach Under Risk," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 118033, European Association of Agricultural Economists.
    17. Hatem Masri, 2017. "A multiple stochastic goal programming approach for the agent portfolio selection problem," Annals of Operations Research, Springer, vol. 251(1), pages 179-192, April.
    18. Simon Cornée & Ariane Szafarz, 2014. "Vive la Différence: Social Banks and Reciprocity in the Credit Market," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 125(3), pages 361-380.
    19. 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.
    20. Tsai, Pei-Hsuan, 2020. "Strategic evaluation criteria to assess competitiveness of the service industry in Taiwan," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1287-1309.

    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:sae:sagope:v:11:y:2021:i:3:p:21582440211036080. 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: SAGE Publications (email available below). General contact details of provider: .

    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.