Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia
Credit risk is important in developing the performance of a microfinance institution. The aim of this research was to analyze credit risk through a harmonious cultural approach to improve financial performance. Qualitative approach was used to explore the practice of harmonious culture in managing c...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2020-05-01
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| Series: | Business: Theory and Practice |
| Subjects: | |
| Online Access: | https://btp.vgtu.lt/index.php/BTP/article/view/9945 |
| _version_ | 1797330651954806784 |
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| author | I Putu Astawa Tjokorda Gde Raka Sukawati Christantius Dwiatmadja |
| author_facet | I Putu Astawa Tjokorda Gde Raka Sukawati Christantius Dwiatmadja |
| author_sort | I Putu Astawa |
| collection | DOAJ |
| description | Credit risk is important in developing the performance of a microfinance institution. The aim of this research was to analyze credit risk through a harmonious cultural approach to improve financial performance. Qualitative approach was used to explore the practice of harmonious culture in managing credit risk. The result of the qualitative study would be utilized to design a questionnaire for quantitative test. Ninety-four (94) companies were selected as the samples by using Slovin Method. The result of the qualitative study explained that harmonious culture-based credit risk was influenced by loan quality, collateral quality, customary rules, traditional leaders, and the belief in karma phala law. Quantitatively, it was found that loan quality, collateral quality, customary rules, traditional leaders, and the belief in karma phala law simultaneously influenced the financial performance. The research result had an implication to risk management in improving financial performance. It could also be used as a new strategy for managers to maintain good relationship with customers. |
| first_indexed | 2024-03-08T07:22:48Z |
| format | Article |
| id | doaj.art-ecc364f22ad7450393376424d18e6d77 |
| institution | Directory Open Access Journal |
| issn | 1648-0627 1822-4202 |
| language | English |
| last_indexed | 2024-03-08T07:22:48Z |
| publishDate | 2020-05-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Business: Theory and Practice |
| spelling | doaj.art-ecc364f22ad7450393376424d18e6d772024-02-02T22:53:57ZengVilnius Gediminas Technical UniversityBusiness: Theory and Practice1648-06271822-42022020-05-0121110.3846/btp.2020.9945Credit risk management based on harmonious cultural values to support microfinance institution performance in IndonesiaI Putu Astawa0Tjokorda Gde Raka Sukawati1Christantius Dwiatmadja2Tourism Business Management, Satate Polytechnic of Bali, Bukit Jimbaran 80361, Bali, IndonesiaFaculty of Economics and Business, Udayana University, Bukit Jimbaran 80362, Bali, IndonesiaFaculty of Economics and Business, Kristen SatyaWacana University, Salatiga 50711, IndonesiaCredit risk is important in developing the performance of a microfinance institution. The aim of this research was to analyze credit risk through a harmonious cultural approach to improve financial performance. Qualitative approach was used to explore the practice of harmonious culture in managing credit risk. The result of the qualitative study would be utilized to design a questionnaire for quantitative test. Ninety-four (94) companies were selected as the samples by using Slovin Method. The result of the qualitative study explained that harmonious culture-based credit risk was influenced by loan quality, collateral quality, customary rules, traditional leaders, and the belief in karma phala law. Quantitatively, it was found that loan quality, collateral quality, customary rules, traditional leaders, and the belief in karma phala law simultaneously influenced the financial performance. The research result had an implication to risk management in improving financial performance. It could also be used as a new strategy for managers to maintain good relationship with customers.https://btp.vgtu.lt/index.php/BTP/article/view/9945credit riskharmonious cultureperformance |
| spellingShingle | I Putu Astawa Tjokorda Gde Raka Sukawati Christantius Dwiatmadja Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia Business: Theory and Practice credit risk harmonious culture performance |
| title | Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia |
| title_full | Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia |
| title_fullStr | Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia |
| title_full_unstemmed | Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia |
| title_short | Credit risk management based on harmonious cultural values to support microfinance institution performance in Indonesia |
| title_sort | credit risk management based on harmonious cultural values to support microfinance institution performance in indonesia |
| topic | credit risk harmonious culture performance |
| url | https://btp.vgtu.lt/index.php/BTP/article/view/9945 |
| work_keys_str_mv | AT iputuastawa creditriskmanagementbasedonharmoniousculturalvaluestosupportmicrofinanceinstitutionperformanceinindonesia AT tjokordagderakasukawati creditriskmanagementbasedonharmoniousculturalvaluestosupportmicrofinanceinstitutionperformanceinindonesia AT christantiusdwiatmadja creditriskmanagementbasedonharmoniousculturalvaluestosupportmicrofinanceinstitutionperformanceinindonesia |