Boundary judgments analysis of the beneficiaries in banking loan allocation

Document Type : Research Paper

Authors

1 Assistant Prof., Department of Industrial Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran.

2 Msc., Department of Industrial Management, Tarbiat Modares University, Faculty of Management and Economics, Tehran, Iran.

Abstract

Objective: In this study, a bank loan allocation is examined in-depth with one of the methods derived from emancipatory operational research, and by conducting in-depth interviews with experts in this field, identifies the views and contradictions between them.
Methods: In order to deeply review with a critical approach, this process of perceiving and reflecting the (hidden) views of stakeholders using 12 border questions in the form of 2 "Is" states in terms of facts and what is now and "ought to be" state. It explores the concept of values and what should ideally exist.
Results: According to the findings, the banking decision-makers' approach should be turning to create shared value, changes in the obsolete banking statute seem necessary, and the central bank system should be working independently. Furthermore, unconventional powers of government and governance have caused injustice in the allocation of loans, and despite the existence of multiple grievance systems, the response to the complaints is too slow. Besides, some sub-systems also have significant weaknesses: credit rating, management evaluation system, the authority of provincial and regional managers, the customer evaluation system, the allocation of credit, and scientific and technological support teams.
Conclusion: This study's results provide suggestions arising from the exploration and understanding of stakeholder boundary judgments (initial judgments about the system and an overview of it) to redesign and implement critical changes in Iran's bank loan allocation system

Keywords

References

 
Amiri, S., Naderi, N., Mohammadifar, Y., Rezaee, B. (2020). Defining the Main Factors of the Stagnation of Food and Pharmaceutical Industrial Enterprises. Industrial Management Journal, 12(1), 143-171. doi: 10.22059/imj.2020.291720.1007675
Azar, A., Khosravani, F., and Jalali, R. (2013). Soft operational research, problem structuring practices, Industrial Management Organization Publication, Tehran, Iran. (In Persian)
Beck, T., Levine, R., & Loayza, N. (2000). Finance and the Sources of Growth. Journal of financial economics, 58(1-2), 261-300.‏
Branson, W. H., & de Macedo, J. B. (1987). Smuggler's blues at the Central Bank: lessons from Sudan (No. w2220). National Bureau of Economic Research.‏
Brei, M., Gadanecz, B., & Mehrotra, A. (2020). SME lending and banking system stability: Some mechanisms at work. Emerging Markets Review, 100676.‏
Degl’Innocenti, M., Fiordelisi, F., & Trinugroho, I. (2020). Competition and stability in the credit industry: Banking vs. factoring industries. The British Accounting Review, 52(1), 100831.‏
Dehghan Nayeri, M., Khazaei, M., & Alinasab Imani, F. (2018). Critical Systems Heuristics (CSH) to Deal with Stakeholders' Contradictory Viewpoints of Iran Performance Based Budgeting System. Industrial Management Journal, 10(3), 429-454.‏
Dehghan Nayeri, M., Khazaei, M., & Alinasab-Imani, F. (2020). The Critical Heuristics of Iranian Banking Credit System: Analysis of the Antithetical Opinions of the Beneficiaries. Systemic Practice and Action Research, 1-30.‏
Ertan, A., Loumioti, M., & Wittenberg‐Moerman, R. (2017). Enhancing loan quality through transparency: Evidence from the European Central Bank loan level reporting initiative. Journal of Accounting Research, 55(4), 877-918.
Flood, R. L., & Jackson, M. C. (1991). Critical systems heuristics: application of an emancipatory approach for Police strategy toward the carrying of offensive weapons. Systems Practice, 4(4), 283-302.‏
Gates, E. F. (2018). Toward valuing with critical systems heuristics. American Journal of Evaluation, 39(2), 201-220.
Ghosh, S. (2019). Loan delinquency in banking systems: How effective are credit reporting systems? Research in International Business and Finance, 47, 220-236.
Green, P. (2014). Critical systems heuristics a basis for evaluation of service in developing countries. In International Conference on Commerce, Law and Social Sciences, 4(1), 1-10.
Hart, D., & Paucar‐Caceres, A. (2014). Using Critical Systems Heuristics to Guide Second‐Order Critique of Systemic Practice: Exploring the Environmental Impact of Mining Operations in Southern Peru. Systems Research and Behavioral Science, 31(2), 197-214.
Huang, W., Schwienbacher, A., & Zhao, S. (2012). When bank loans are bad news: Evidence from market reactions to loan announcements under the risk of expropriation. Journal of International Financial Markets, Institutions and Money, 22(2), 233-252.‏
Khosravani, F., Azar, A., Khodadad, H. S. H., & Rajabzadeh, A. (2016). Strategy making problem structuring with journey making and drama theory (case study: green gas supply chain). Modern Research in Decision Making, 1(1), 103-138. (In Persian)‏
Mirkazemi Mood, M., Mohaghar, A., & Sadeghi Moghadam, M. R. (2019). Developing Design Science Research methodology to design a method to model socio-technical systems. Modern Research in Decision Making, 4(2), 145-173.‏
Parsafard, M., shirkavand, S., Tehrani, R., Mirlohi, S. (2018). Standalone Credit Rating of the Country's Banks. Industrial Management Journal, 10(4), 575-606. doi: 10.22059/imj.2018.262015.1007461.
Pindyck, Robert S. (1979). The Structure of World Energy Demand. MIT press Cambridge, MA. 
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable business (pp. 323-346). Springer, Dordrecht.‏
Proenca, A. P., Miranda, M., Lamounier Jr, E. A., Cardoso, A., & Notargiacomo, P. (2017). Systematic review on cognitive engineering applied to critical systems for proposition of evaluation heuristics for virtual reality. IEEE latin america transactions, 15(10), 2024-2029.
Rosenhead, J. (2006). Past, present and future of problem structuring methods. Journal of the operational research society, 57(7), 759-765.
Ssekiziyivu, B., Mwesigwa, R., Joseph, M., & Nkote Nabeta, I. (2017). Credit allocation, risk management and loan portfolio performance of MFIs—A case of Ugandan firms. Cogent Business & Management, 4(1), 1374921.
Tchakoute-Tchuigoua, H., & Soumaré, I. (2019). The effect of loan approval decentralization on microfinance institutions' outreach and loan portfolio quality. Journal of Business Research, 94, 1-17.
Ulrich W. (2005) A brief introduction to critical systems heuristics (CSH). ECOSENSUS project site
Ulrich W. (2013) Critical systems thinking. In: Gass SI, Fu MC (eds) Encyclopedia of operations research and management science. Springer, New York, pp 314–326.
Ulrich, W. (1983). Critical heuristics of social planning: A new approach to practical philosophy.‏
Ulrich, W. (1998). Systems thinking as if people mattered: critical systems thinking for citizens and managers. University of Lincolnshire and Humberside, Lincoln School of Management.‏
Ulrich, W. (2017). The concept of systemic triangulation: its intent and imagery| W. Ulrich| Ulrich's Bimonthly. Ulrich's Bimonthly, 15(2), 1-17.‏
Venter, C., & Goede, R. (2017). The use of critical systems heuristics to surface and reconcile users' conflicting visions for a business intelligence system. Systemic Practice and Action Research, 30(4), 407-432.‏
White, L. (2006). Evaluating problem-structuring methods: Developing an approach to show the value and effectiveness of PSMs. Journal of the Operational Research Society, 57(7), 842-855.
Industrial Management Journal
Volume 13, Issue 1
2021
Pages 27-52

Files

Share

How to cite

Statistics