Using multi-criteria decision-making methods in performance measurement: A comparative analysis by codas and moosra methods in Borsa Istanbul textile, weaving, apparel and leather industry

Abstract

Manufacturing companies need to regularly evaluate their performance to increase their market shares, develop new products and maintain competitive advantages. The performance that can be measured in part by using fundamental financial statements will be specific only to the company. Multiple criteria are needed to evaluate the sector as a whole and to determine the company position in the sector. In such a case, Multi-Criteria Decision Making (MCDM) methods can produce ideal results, where all alternatives and criteria can be included in the analysis. This study evaluated the performances of 20 companies, which are traded in the Weaving, Apparel and Leather Sector of the Borsa Istanbul (BIST), which is one of the sectors where the performance is followed by certain trends and therefore the performance is of great importance, for 2017 and 2018 by using five different financial ratios/criteria obtained from the FINNET database. In the study, an equal weight was assigned to the criteria, and the CODAS (Combinative Distance-Based Assessment) and MOOSRA (Multi-Objective Optimization on the Basis of Simple Ratio Analysis) methods were used. As a result, the performance rankings in both methods were similar in terms of first and last rows, and the differences were found in the middle rows. © Peter Lang GmbH Internationaler Verlag der Wissenschaften Berlin 2022.