Original articlesAn integrated stochastic fuzzy MCDM approach to the balanced scorecard-based service evaluation☆
Introduction
By the globalization, the use of knowledge makes the multinational firms efficient and it eases to monitor the competitive policies in determining strategy includes versatile information for the production and service sector. Due to the effective use of information, the companies have some opportunities to determine the adequacy of the service and products in the commercialization process. Accordingly, knowledge-based system which is called the new economy has allowed the globalized firms to use the multifaced data obtained from the customers and other participants by the beginning of the 1990s.
Moreover, ease of reaching the information and communication technologies with the new economy has enhanced the importance of analysing the existing internal and external environmental data in the incremental and radical innovation and development process. In the increasing competitive environment, the product development processes have begun to host the service development processes by the 1980s. Thus, the new economic process to emphasize a sustainable progress for each stage of the NSD process from the design to the commercialization in the interactive way.
Similarly, multidimensional assessment of innovative strategies and decisions on the NSD in the service industry is a novel issue in the competitive market environment. The critical success factors of innovative service thinking are defined in the strategy and knowledge management, process formulation [3]. Several factors such as strategy, formalized development process, integrated development teams, and customer interaction are highly related to examine the key strategic factors in developing new services [28].
Nowadays, some research interests arise to gain the advantages of the globalized service quality improvement. Organizational competency is one of the prominent issues in the NSD. Interaction in the organizational team increases the expertise for the service improvement [78]. Thus, innovative thoughts are highly valuable by considering functional teams, and learning orientation processes. Additionally, the internal and external integration practises bring the achievement on the new service applications, despite some costs in the idea generation stage [35] and interventional culture is an influential factor in the development of new services within the learning culture [76]. Another important debate in the service development is customer-oriented innovation policies. The active role of customers at each stage contributes to creating the service innovation [15] with social networks [73], learning alignment [79], harmony between client and directly related personnel in the NSD.
Because of the recent interests in the NSD, the dynamic innovation policies towards the service development process, especially the suitability of NSD process, are more closely used in the multidimensional perspective defining the internal and external factors of competitive business environment for the new economic requirements. Consequently, the NSD process needs to be redesigned by considering BSC approach to include the customer, financial outcomes, organizational factors, and learning and growth factors concurrently [44], [45], [77]. Accordingly, BSC-based performance measurement is one of unique technique that provides the multifaceted perspectives for the service and quality improvement in the fierce competitive conditions. Multi Criteria Decision Making (MCDM) is frequently used for evaluating the complex real-world problems. Especially, stochastic modelling provides several extensions in the sophisticated decision-making process [53], [80], [100]. However, the stochastic extensions to MCDM are extremely limited under the fuzzy environment [41], [83], [98].
This study proposes a novel approach to stochastic fuzzy decision-making process with the integrated modelling. For this purpose, the FANP have been applied for weighting the criteria, the FVIKOR and TOPSIS have been used for ranking the banks. Accordingly, Monte Carlo simulation has been adapted to the hybrid fuzzy decision-making process for providing the stochastic values of the BSC-based dimensions for the NSD competencies in Turkish banking sector. Hence, using simulation approach gives opportunity to increase the number of decision makers (DM) stochastically. In this study, FANP is preferred instead of fuzzy AHP because it considers the conditions under the assumption of innerdependency of the factors. Also, the main reason of choosing FVIKOR and FTOPSIS is that they are coherent and frequently used approaches. Additionally, with the help of Monte Carlo analysis, high numbers of expert opinions can be taken into the consideration with stochastic data.
Hence, it can be said that this study has many novelties. First of all, it is the first study in which FANP, FVIKOR and FTOPSIS approaches are considered with simulation methodology. In addition to this issue, Monte Carlo simulation technique is firstly considered in order to calculate the stochastic values for the dimensions. Moreover, this new model is taken into the consideration firstly for the banking sector. As a result, it is obvious that the results provide significant opportunities for both researchers and experts with respect to the strategy development in new service generation process. Thus, this study is intended to contribute to the literature.
In this study, five different sections are stated. In this introduction section, general information about the concept is given. The second section presents the current literature and research interest in the NSD. The following section discusses methodology of the stochastic hybrid fuzzy decision-making approach. Additionally, the fourth section provides the model construction and analysis results. Finally, the last section highlights the results and recommendations of the study.
Section snippets
Literature review
There is limited debate on the service improvement of the banking sector in the literature. Drew [25] emphasizes the barriers to rapid innovation and increasing factors of the new product development in the financial sector. Yanikkaya et al. [95] discuss the role of new product and alternative channel development for the profitability of Islamic banks by comparing the conventional banking system. Garrone and Colombo [30] define the needs for driving the development of innovative services in the
Methodology
The aim of the study is to evaluate NSD capacity of Turkish deposit banks. For this purpose, criteria are weighted by FANP approach. On the other side, Monte Carlo simulation method is applied to provide stochastic values of the dimensions. Additionally, FTOPSIS and FVIKOR methods are considered to rank different banks according to their performances. These issues give information that a stochastic approach to fuzzy MCDM is used in order to reach this objective. With the help of simulation
Proposed model
This study proposes a stochastic hybrid fuzzy MCDM approach to rank the alternatives more accurately using the massive expert opinions. The hybrid model integrates the FANP, Monte Carlo simulation, FTOPSIS and FVIKOR respectively. For this purpose, it includes three phases from the weighting of criteria to the ranking of the alternatives consecutively. The details of the flowchart for the proposed model are illustrated in Fig. 2.
Initial step of the integrated stochastic decision-making approach
Discussion and conclusions
Knowledge-based system gives more opportunities to the globalized firms in the competitive market environment due to the possible multifaced data. New market-based statements force to the rivals for making decisions more accurately. Especially, generating the data and its evaluation arise as a novel issue to make a decision under the uncertain conditions. For this reason, innovative strategies on the service and product management and new multidimensional evaluations of competitive market are
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This paper is prepared within the scope of TÜBİTAK project (116K738) named by “Comparative Analysis of Balanced Scorecard Based New Service Development Competencies with Hybrid Multi-Criteria Decision Making Methods under the Fuzzy Environment: An Application on Turkish Banking Sector”. We would like to thank to TÜBİTAK for all support.