Examining the credit supply chain network problems of Iran’s banking industry Using Work-Centered Analysis (WCA) framework

  • Eissa Jabbarzadeh PhD in technology management, Progress Engineering Faculty, Iran University of Science and Technology
  • Ebrahim Teimoury Professor of Industrial Engineering Faculty, Iran University of Science and Technology
  • Saeed Shavvalpoor Associate Professor of Iran University of Science and Technology
Keywords: Credit supply chain network, Supply Chain Finance (SCF), Work-Centered Analysis (WCA) methodology, Technology-Based Companies (TBC), Banking industry; Diagnosis

Abstract

In the situation where the main credit supply of the country’s enterprises is done through the banking system, it is necessary to analyze and explore the defects of the financing and credit supply relationship between banks and enterprises. This study is considered a descriptive-applied research and the required data were collected through library studies, workplace observation, and interviews with process experts. In this research, 37 credit experts from 17 different bank branches were interviewed about the process of granting facilities. Work-Centered Analysis (WCA) framework and conducting audits through questionnaires and related checklists revealed that the structure of Iran’s credit supply chain network suffers from such problems as deviation in the appropriate use of allocated credit resources, structural faults of the banking system and lack of administrative health, high bureaucracy, directed facilities, etc. In the end, some suggestions are provided for redesign and optimization of the credit supply network.

References

1. https://www.cbi.ir/(2020).

2. Zhu, Y., Zhou, L., Xie, C., Wang, G.-J., & Nguyen, T. V. (2019). Forecasting SMEs' credit risk in supply chain finance with an enhanced hybrid ensemble machine learning approach. International Journal of Production Economics, 211, 22–33. https://doi.org/10.1016/j.ijpe.2019.01.032

3. Gelsomino, L. M., de Boer, R., Steeman, M., & Perego, A. (2019).An optimization strategy for concurrent supply chain finance schemes. Journal of Purchasing and Supply Management, 25(2), 185–196. https://doi.org/10.1016/j.pursup.2018.07.004

4. Su, Y., & Zhong, B. (2017). Supply chain finance decision analysis with a partial credit guarantee contract. Journal of Applied Mathematics and Physics, 5(06), 1355–1369. https://doi.org/10.4236/jamp.2017.56112

5. Lekkakos, S. D., & Serrano, A. (2016). Supply chain finance for small and medium sized enterprises: The case of reverse factoring. International Journal of Physical Distribution and Logistics Management, 46. https://doi.org/10.1108/IJPDLM-07-2014-0165

6. Chen, S., & Murata, T. (2016). Decision-making of supply chain finance, based on inventory financing procedure under default risk and market risk. Proceedings of the International Multi- Conference of Engineers and Computer Scientists, 16–18.

7. Timsina, N. (2014). Bank credit and economic growth in Nepal: An empirical analysis. NRB Economic Review, 26(2), 1-24.

8. Markus, M. L., & Mao, J. Y. (2004). Participation in development and implementation-updating an old, tired concept for today's IS contexts. Journal of the Association for Information systems, 5(11), 14.

9. Jones, D., & Gregor, S. (2007). The anatomy of a design theory. Journal of the Association for Information Systems (JAIS), 8(5), Article 19.

10. Naghizadeh, R., & Namdarian, L. (2019). The Supportive policies for new technology-based firms (NTBF's). Journal of Science & Policy, 11(2), 285–296.

11. Cunha, D., Silva, S., & Teixeira, A. (2013). Are academic spin-offs necessarily new technology-based firms. Research Work in Progress, 482, 1–42.

12. Laranja, M. D. (1995). Small firm entrepreneurial innovation in Portugal: The case of electronic and information technologies. University of Sussex.

13. Little, A. D. (1977). New Technology-Based Firms in the United Kingdom and the Federal Republic of Germany: A Report prepared for the Anglo-German Foundation for the Study of Industrial Society.

14. Shearman, C., & Burrell, G. (1988). New technology based firms and the emergence of new industries: Some employment implications. New Technology, Work and Employment, 3(2), 87–99. https://doi.org/10.1111/j.1468-005X.1988.tb00092.x

15. Oakey, R. P. (2003). Funding innovation and growth in UK new technology-based firms: Some observations on contributions from the public and private sectors. Venture Capital: An International Journal of Entrepreneurial Finance, 5(2), 161–179.https://doi.org/10.1080/1369106032000097049

16. Garcia-Tsao, G., Abraldes, J. G., Berzigotti, A., & Bosch, J. (2017).Portal hypertensive bleeding in cirrhosis: Risk stratification, diagnosis, and management: 2016 practice guidance by the American association for the study of liver diseases. Herpetology, 65(1), 310–335. https://doi.org/10.1002/hep.28906

17. Govindan, K., Fattahi, M., & Keyvanshokooh, E. (2017). Supply chain network design under uncertainty: A comprehensive review and future research directions. European Journal of Operational Research, 263(1), 108–141. https://doi.org/10.1016/j.ejor.2017.04.009

18. Alter, Steven. (1999). A general, yet useful theory of information systems. Communications of the Association for Information Systems, 1(1), 13.

19. Alter, Steven. (2007). Service responsibility tables: A new tool for analyzing and designing systems. AMCIS 2007 Proceedings, 477.

20. Alter, Steven. (2008). Service system fundamentals: Work system, value chain, and life cycle. IBM systems journal, 47(1), 71-85.

21. Alter, S. (2013). Work system theory: overview of core concepts, extensions, and challenges for the future. Journal of the Association for Information Systems, 72.

22. Alter, Steven. (2006). Pitfalls in analyzing systems in organizations. J. Inf. Syst. Educ., 17(3), 295-302.

23. Popa, V. (2013). The financial supply chain management: A new solution for supply chain resilience. Amfiteatru Economic Journal,15(33), 140–153.

Published
2023-12-05
Section
Articles