The purpose of this paper is to broaden understanding as to how certain social/personal dynamics influence credit decisions in Sri Lanka, elucidating them through a taxonomy and a conceptual typological matrix.
This research is an exploratory case study. The primary data collection methods are interviews and reconstruction of experiences. The data are complemented by documentary analysis and post-research events.
The research findings propose that credit officers and customers are influenced by six dynamics under three dimensions: the evaluation procedures (systematic/formal or heuristics); the relationship between customers and bank officers (personal or role relationship); and justification of credit (rational or irrational/situational). Based on the above results, a taxonomy of influential tactics and personality traits and a typological matrix are developed to classify credit decision-makers, who are labelled as BOSS, ROBOT, REBEL and BUDDY.
These case studies are from a private bank in Sri Lanka, hence it could affect the generalization of findings. Therefore, researchers are encouraged to investigate the plausibility of the findings in diverse cultural backgrounds.
Credit decision-makers and credit applicants could make use of these typological matrix and the taxonomy to understand each other and employ more influential approaches and appropriate influential techniques to make effective credit decisions. It also provides more insight into understanding the nature of credit-decisions and decision-makers and, provokes further research.
To the author’s best knowledge, this is the first study in Sri Lanka that considers certain influencing factors of credit decision-making and proposes a conceptual typology to understand those factors.
