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Advances in Fuzzy Systems
Volume 2011 (2011), Article ID 148712, 12 pages
http://dx.doi.org/10.1155/2011/148712
Research Article

Combining Fuzzy MCDM with BSC Approach in Performance Evaluation of Iranian Private Banking Sector

1Department of management, Ilam branch, Islamic Azad University, Ilam, Iran
2Department of management, Tarbiat Modares University, Tehran, Iran

Received 28 March 2011; Revised 21 May 2011; Accepted 5 June 2011

Academic Editor: Salvatore Sessa

Copyright © 2011 Meysam Shaverdi et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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 “ 𝐶 1 ” is the most 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.