Identification of Non-Financial Criteria Affecting Financial Performance in the Banking Industry

Abstract

The objective of this study is to identify non-financial criteria that influence financial performance in the banking industry using a qualitative approach. The dimensions and indicators of non-financial criteria were identified through semi-structured interviews with academic experts selected purposefully. To validate the identified categories, the fuzzy Delphi technique was employed. The statistical population under investigation consisted of two groups: expert banking managers at various levels selected through purposive sampling based on the saturation rule (12 individuals), and university professors along with internal managers at different supervisory levels of banks listed on the Tehran Stock Exchange, from whom 10 individuals were selected based on the sample size requirement for the Delphi method. Data analysis in the qualitative phase was carried out using MAXQDA software. According to the findings, 54 indicators were categorized into six dimensions: individual, organizational, structural, developmental, procedural, and environmental factors. In the first round of the fuzzy Delphi technique, consensus was achieved for all six components. Moreover, the experts did not propose any new components beyond the initially suggested ones, and based on the final defuzzified means, the codes with the greatest impact within these six categories were identified. It can be concluded that financial criteria alone cannot sufficiently represent performance. Non-financial criteria serve as better indicators for reflecting future financial performance. Even when the primary objective is to maximize financial performance, traditional financial metrics contribute little to understanding long-term financial outcomes within an organization.