Developing a Model of Factors Affecting the Profitability of the Banking Industry Based on Structural-Interpretive Modeling (Case Study: Tejarat Bank of East Azarbaijan Province)

Subject Areas : Strategic Management Researches

Shapour rahmani ¹ , Soleyman Iranzadeh ² , Yaqhoub Alavi Matin ³

1 - PhD student, Departmen of Management, Tabriz branch, Islamic Azad University, Tabriz, Iran
2 - Department of Industrial Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
3 - Assistant Professor, Department of Management, Islamic Azad University of Tabriz, Tabriz, Iran

Received: 2021-02-24 Accepted : 2021-05-18 Published : 2022-02-20

Keywords: Structural-Interpretive Modeling, Tejarat Bank, MICMAC Analysis, Profitability of Banking Industry,

Abstract :

Recent turmoil in the global financial system has highlighted the importance of a well-performing financial system for economic growth. A healthy and profitable banking industry can better withstand negative shocks and help stabilize the financial system. Accordingly, the purpose of this study was to develop a model of factors affecting the profitability of the banking industry based on structural-interpretive modeling in Tejarat Bank of East Azerbaijan Province. This research was based on the purpose of applied-developmental research. The statistical population of the study was divided into two sections: managers and heads of branches of Tejarat Bank of East Azerbaijan Province and research experts to determine the pattern of relationships between factors affecting profitability. Two questionnaires were used to collect data, the validity and reliability of which were assessed based on the construct validity and Cronbach's alpha coefficient. In order to analyze the data, confirmatory factor analysis and structural-interpretive modeling have been used. Findings show that the factors affecting profitability can be classified into twelve indicators and three main components. Also, the results of structural-interpretive modeling show that for the profitability of Iranian banks, primarily government factors are important, followed by economic factors and finally the specific characteristics of the bank

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