Analysis of financial development and open innovation oriented fintech potential for emerging economies using an integrated decision-making approach of MF-X-DMA and golden cut bipolar q-ROFSs

The purpose of the paper is to identify the factors of financial development that have the greatest impact on open innovation in 7 emerging countries. The analysis was performed featuring the MF-X-DMA method, as well as its further verification for autocorrelation and heteroscedasticity. The time period covers years from 2002 to 2020. The article states that the main indicators to improve financial development should enhance the process of bank lending and equity market development. An important area is the development of competition by providing equal access to information to all market participants in a continuously refining technical infrastructure. Regression analysis with the MF-X-DMA method confirms the statistical significance of this influence. The article fills the knowledge gap into the link between open innovations and the relatively low capitalization of the modern emerging countries' financial market, low liquidity in small cap stocks at the financial market and concentration of the banking sector, as well as risks arising in the process of globalization. Another analysis has also been conducted by generating a novel fuzzy decision-making model. In the first stage, the determinants of open innovation-based fintech potential are weighted for the emerging economies. For this purpose, M-SWARA methodology is taken into consideration based on bipolar q-ROFSs and golden cut. The second stage of the analysis includes evaluating the emerging economies with the determinants of open innovation-based fintech potential. In this context, emerging seven countries are examined with ELECTRE methodology. It found the most significant factor is the open innovation-based fintech potential.

Automated summary

The paper aims to identify the key factors of financial development that influence open innovation in seven emerging countries. The analysis utilizes the MF-X-DMA method and verifies the results for autocorrelation and heteroscedasticity. The study period spans from 2002 to 2020. The article suggests that improving bank lending and equity market development are crucial indicators for enhancing financial development. Additionally, equal access to information and a refined technical infrastructure are important for promoting competition. The regression analysis confirms the statistical significance of these factors. The article fills a knowledge gap by exploring the relationship between open innovation and low capitalization, liquidity issues, and concentration in emerging countries' financial markets, as well as the risks associated with globalization. Another analysis is conducted using a novel fuzzy decision-making model. The determinants of open innovation-based fintech potential are weighted using the M-SWARA methodology, and the emerging economies are evaluated using the ELECTRE methodology. The most significant factor is found to be the open innovation-based fintech potential.