Competitive strategy selection in the european banking sector using a hybrid decision-making approach

Abstract

Strategic planning is an effective tool for long-term planning and utilized by organizations and industries to achieve competitive advantage. Addressing difficulties that the European banking sector struggled during and after the global financial crisis (GFC), the purpose of this paper is to raise important questions about the sustainability of the sector and offers competitive strategy formulations for European policy makers. Empirical findings are accomplished by applying a three phase analysis of SWOT, an integrated model of DEMATEL-ANP (DANP), and fuzzy TOPSIS. Empirical findings from the SWOT analysis suggest a total of twelve factors, which are then incorporated to formulate four strategies. The DANP results illustrate that opportunities dimension has the highest impact and strengths has the lowest among others. The fuzzy TOPSIS results demonstrate that “the European Banking Union (EBU) is expected to remove divergence in the Euro area banking sector” is the most important strategy, whilst “the non-risk based leverage ratio (LR) requirement by Basel III” has the weakest importance among the strategy preferences.Strateško planiranje je u?inkovit alat za dugoro?no planiranje koje primjenjujuorganizacije i industrije za postizanje konkurentske prednosti. S obzirom napoteško?e s kojima se europski bankarski sektor suo?ava za vrijeme i nakonglobalne financijske krize (GFC), svrha ovog rada je podi?i va?na pitanja oodr?ivosti sektora i ponuditi formulacije konkurentnih strategija za europskekreatore politike. Empirijski rezultati posti?u se primjenom SWOT analize u trifaze, integriranog modela DEMATEL-ANP (DANP) i ‘fuzzy’ (neizrazitog)TOPSIS-a. Empirijski rezultati SWOT analize ukazuju na ukupno dvanaest?imbenika, koji su potom uklju?eni u formuliranje ?etiri strategije. DANP rezultatipotvr?uju da faktor prilika ima najve?i utjecaj, a snage imaju najni?i utjecaj uodnosu na ostala tri faktora. Neizraziti rezultati TOPSIS-a pokazuju da najva?nijastrategija jest da “Europska bankovna unija (EBU) ukloni odstupanja ubankarskom sektoru u eurozoni”, dok “zahtjev Basel-a III o nerizi?nom omjerufinancijske poluge (LR)” ima najmanju va?nost me?u strategijskim prioritetima.