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Adding Value to Bank Branch Performance Evaluation Using Cognitive Maps and MCDA: A Case Study

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  • Paulo M.M. Rodrigues
  • Fernando A. F. Ferreira
Abstract
The performance evaluation of bank branches is a difficult task. One of the main reasons for this difficulty is the complexity inherent in the variety of aspects to be considered in the evaluation, and the multiple and conflicting interests of the different stakeholders involved. In this paper we aim to show how cognitive mapping and the MACBETH approach can be used to support the evaluation of bank branches through the development of multidimensional performance evaluation systems, and to deal explicitly with the trade-offs between the different dimensions of performance and interests of different stakeholders. A case study is discussed where these techniques are used in a constructive way, making the learning activity easier and introducing transparency in the decision making process. The strengths and weaknesses of the integrated use of these two operational research techniques in this context are also discussed.

Suggested Citation

  • Paulo M.M. Rodrigues & Fernando A. F. Ferreira, 2009. "Adding Value to Bank Branch Performance Evaluation Using Cognitive Maps and MCDA: A Case Study," Working Papers w200923, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w200923
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    Cited by:

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    2. Ayfer Basar & Özgür Kabak & Y. Ilker Topcu, 2017. "A Decision Support Methodology for Locating Bank Branches: A Case Study in Turkey," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 59-86, January.
    3. Paulo M.M. Rodrigues & Fernando A. F. Ferreira, 2011. "Evaluating retail banking quality service and convenience with MCDA techniques: a case study at the bank branch level," Working Papers w201131, Banco de Portugal, Economics and Research Department.
    4. Maria Franca Norese & Diana Rolando & Rocco Curto, 2023. "DIKEDOC: a multicriteria methodology to organise and communicate knowledge," Annals of Operations Research, Springer, vol. 325(2), pages 1049-1082, June.
    5. Ferreira, Fernando A.F. & Marques, Carla S.E. & Bento, Paulo & Ferreira, João J.M. & Jalali, Marjan S., 2015. "Operationalizing and measuring individual entrepreneurial orientation using cognitive mapping and MCDA techniques," Journal of Business Research, Elsevier, vol. 68(12), pages 2691-2702.
    6. Carayannis, Elias G. & Ferreira, Fernando A.F. & Bento, Paulo & Ferreira, João J.M. & Jalali, Marjan S. & Fernandes, Bernardo M.Q., 2018. "Developing a socio-technical evaluation index for tourist destination competitiveness using cognitive mapping and MCDA," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 147-158.
    7. Gomes, Luís S. & Santos, Sérgio P. & Coelho, Luís Serra & Rebelo, Efigénio L., 2023. "Using MCDA to assist an Intermunicipal community develop a resilience strategy in face of the pandemic caused by the SARS-CoV-2," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    8. Ferreira, Fernando A.F. & Spahr, Ronald W. & Sunderman, Mark A. & Govindan, Kannan & Meidutė-Kavaliauskienė, Ieva, 2022. "Urban blight remediation strategies subject to seasonal constraints," European Journal of Operational Research, Elsevier, vol. 296(1), pages 277-288.
    9. Manuel D. N. T. Oliveira & Fernando A. F. Ferreira & Guillermo O. Pérez-Bustamante Ilander & Marjan S. Jalali, 2017. "Integrating cognitive mapping and MCDA for bankruptcy prediction in small- and medium-sized enterprises," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(9), pages 985-997, September.
    10. Francis Marleau Donais & Irène Abi-Zeid & E. Owen D. Waygood & Roxane Lavoie, 2021. "A Framework for Post-Project Evaluation of Multicriteria Decision Aiding Processes from the Stakeholders’ Perspective: Design and Application," Group Decision and Negotiation, Springer, vol. 30(5), pages 1161-1191, October.
    11. Fernando A. F. Ferreira & Ronald W. Spahr & Irina F. M. D. Gavancha & Amali Çipi, 2013. "Readjusting trade-offs among criteria in internal ratings of credit-scoring: an empirical essay of risk analysis in mortgage loans," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(4), pages 715-740, September.
    12. Santos, Sérgio P. & Belton, Valerie & Howick, Susan & Pilkington, Martin, 2018. "Measuring organisational performance using a mix of OR methods," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 18-30.
    13. Fernando A. F. Ferreira & Marjan S. Jalali & Paulo Bento & Carla S. E. Marques & João J. M. Ferreira, 2017. "Enhancing individual entrepreneurial orientation measurement using a metacognitive decision making-based framework," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 327-346, June.
    14. 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.
    15. Fernando A. F. Ferreira & Sérgio P. Santos & Paulo M. M. Rodrigues & Ronald W. Spahr, 2014. "Evaluating retail banking service quality and convenience with MCDA techniques: a case study at the bank branch level," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(1), pages 1-21, February.
    16. Mital, Monika & Del Giudice, Manlio & Papa, Armando, 2018. "Comparing supply chain risks for multiple product categories with cognitive mapping and Analytic Hierarchy Process," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 159-170.
    17. Fernando A. F. Ferreira & Sérgio P. Santos & Paulo M. M. Rodrigues & Ronald W. Spahr, 2014. "How to create indices for bank branch financial performance measurement using MCDA techniques: an illustrative example," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(4), pages 708-728, September.

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