Application of integrated fuzzy MCDM approach for financial performance evaluation of Turkish technology sector

Aldalou E., PERÇİN S.

International Journal of Procurement Management, vol.13, no.1, pp.1-23, 2020 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 13 Issue: 1
  • Publication Date: 2020
  • Doi Number: 10.1504/ijpm.2020.105198
  • Journal Name: International Journal of Procurement Management
  • Journal Indexes: Scopus, Aerospace Database, Communication Abstracts, INSPEC, Metadex, Civil Engineering Abstracts
  • Page Numbers: pp.1-23
  • Keywords: FELECTRE I, Financial performance evaluation, FSE, Fuzzy Shannon's entropy, Turkish technology sector.
  • Karadeniz Technical University Affiliated: Yes


Information and communications technology (ICT) sector of Turkey encountered a massive increase since 1970s as a result of the rapid international development in the communications and information technologies. Compliance with such a huge investment and the market integration of ICT sector, the analysis and evaluation of its financial performance is very important. In this regard, an integrated fuzzy Shannon's entropy and fuzzy ELECTRE I approach is proposed. To avoid subjectivity in the decision process, FSE method is used to assign weights for the evaluation criteria, then FELECTRE I method is applied to evaluate and rank alternatives. The proposed approach is used to identify and evaluate the financial performance of companies listed at BIST Technology Index of Turkey, in which DESPEC Company is financially evaluated to be the best company within the sector. Sensitivity analysis and comparison of the results with other MCDM models are also provided.