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Open AccessArticle

An integrated Multi-Criteria Decision Making Model for Sustainability Performance Assessment for Insurance Companies

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Department of Industrial Engineering, Urmia University of Technology, Urmia 419-57155, Iran
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School of Industrial and Systems Engineering, University of Oklahoma, Norman, OK 73019, USA
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Department of Mechanical Engineering, Shanghai Jiao Tong University, Shanghai 430074, China
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Department of Economics, University of Molise, Via De Sanctis, 86100 Campobasso, Italy
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School of Engineering, Catholic University of the North, Larrondo 1281, Coquimbo 1240000, Chile
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Department of Graphical Systems, Vilnius Gediminas Technical University, Sauletekio al, 11, LT-10223 Vilnius, Lithuania
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Informetrics Research Group, Ton Duc Thang University, Ho Chi Minh City 758307, Vietnam
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Faculty of Business Administration, Ton Duc Thang University, Ho Chi Minh City 758307, Vietnam
*
Authors to whom correspondence should be addressed.
Sustainability 2020, 12(3), 789; https://doi.org/10.3390/su12030789
Received: 27 December 2019 / Revised: 13 January 2020 / Accepted: 15 January 2020 / Published: 21 January 2020
(This article belongs to the Special Issue Sustainability Assessment)
To stay competitive in a business environment, continuous performance evaluation based on the triple bottom line standard of sustainability is necessary. There is a gap in addressing the computational expense caused by increased decision units due to increasing the performance evaluation indices to more accuracy in the evaluation. We successfully addressed these two gaps through (1) using principal component analysis (PCA) to cut the number of evaluation indices, and (2) since PCA itself has the problem of merely using the data distribution without considering the domain-related knowledge, we utilized Analytic Hierarchy Process (AHP) to rank the indices through the expert’s domain-related knowledge. We propose an integrated approach for sustainability performance assessment in qualitative and quantitative perspectives. Fourteen insurance companies were evaluated using eight economic, three environmental, and four social indices. The indices were ranked by expert judgment though an analytical hierarchy process as subjective weighting, and then principal component analysis as objective weighting was used to reduce the number of indices. The obtained principal components were then used as variables in the data envelopment analysis model. So, subjective and objective evaluations were integrated. Finally, for validating the results, Spearman and Kendall’s Tau correlation tests were used. The results show that Dana, Razi, and Dey had the best sustainability performance. View Full-Text
Keywords: analytic hierarchy process (AHP); data envelopment analysis (DEA); sustainability; insurance companies; principal component analysis (PCA) analytic hierarchy process (AHP); data envelopment analysis (DEA); sustainability; insurance companies; principal component analysis (PCA)
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Beiragh, R.G.; Alizadeh, R.; Kaleibari, S.S.; Cavallaro, F.; Zolfani, S.H.; Bausys, R.; Mardani, A. An integrated Multi-Criteria Decision Making Model for Sustainability Performance Assessment for Insurance Companies. Sustainability 2020, 12, 789.

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