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Application of viable system model in diagnosing defects and problems of the credit supply chain network in the Iranian banking industry

Author

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  • Eissa Jabbarzadeh
  • Ebrahim Teimoury
  • Saeed Shavvalpour

Abstract

The present study attempts to study the credit supply process in the Iranian banking industry by using the viable system model (VSM) to identify its vulnerabilities and improve the financing system. The method used in this study consists of three steps: (a) identification of system, (b) diagnosis of system and (c) control of information flow, communication channels and frequent errors. In this research, 37 credit experts from 17 different bank branches were interviewed about the process of granting facilities, and SPSS 23 was used to examine research objectives through the Delphi method. The results show 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.

Suggested Citation

  • Eissa Jabbarzadeh & Ebrahim Teimoury & Saeed Shavvalpour, 2023. "Application of viable system model in diagnosing defects and problems of the credit supply chain network in the Iranian banking industry," Systems Research and Behavioral Science, Wiley Blackwell, vol. 40(1), pages 101-145, January.
    • Handle: RePEc:bla:srbeha:v:40:y:2023:i:1:p:101-145
    DOI: 10.1002/sres.2841
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    References listed on IDEAS

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    1. Zhu, You & Zhou, Li & Xie, Chi & Wang, Gang-Jin & Nguyen, Truong V., 2019. "Forecasting SMEs' credit risk in supply chain finance with an enhanced hybrid ensemble machine learning approach," International Journal of Production Economics, Elsevier, vol. 211(C), pages 22-33.
    2. Zeinab Rezaee & Adel Azar & Abbas Moghbel Ba Erz & Mahmoud Dehghan Nayeri, 2019. "Application of Viable System Model in Diagnosis of Organizational Structure," Systemic Practice and Action Research, Springer, vol. 32(3), pages 273-295, June.
    3. Virgil Popa, 2013. "The Financial Supply Chain Management: a New Solution for Supply Chain Resilience," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 140-153, February.
    4. R. P. Oakey, 2003. "Funding innovation and growth in UK new technology-based firms: Some observations on contributions from the public and private sectors," Venture Capital, Taylor & Francis Journals, vol. 5(2), pages 161-179, April.
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