Stochastic hybrid decision-making based on interval type 2 fuzzy sets for measuring the innovation capacities of financial institutions

Abstract

This study aims to construct a hybrid decision-making approach to the stochastic evaluation for the innovation capacity of financial institutions. For this purpose, interval type 2 fuzzy DEMATEL-ANP is used for weighting the criteria and dimensions. Additionally, TOPSIS and VIKOR methods based on interval type 2 fuzzy sets are considered to rank the alternatives. The novelty of the study is to propose a set of criteria and dimensions of innovation capacity with the supported literature. Another novelty is to propose an extended method of DEMATEL-ANP by using interval type 2 fuzzy sets as well as an integrated method of interval type 2 fuzzy stochastic decision-making with the Monte Carlo simulation. The results indicate that organizational dimension of innovation capacities has the highest importance between the set of criteria and the state-owned banks have been more appropriate than both the private and foreign banks for generating the innovation capacities in the financial institutions. However, the analysis illustrates that stochastic decision-making models could provide more extensive results than the conventional methods including the expert priorities. This study could be also extended by using different multicriteria decision-making methods such as MOORA and ELECTRE and also, the cross-country analysis could be applied for the future studies.