An Optimal Bank Relationship Management Approach In Emerging Countries: A Solution For A Successful And Profitable Bank’s Partnership for SMEs (2013)

This MBA dissertation explores financing difficulties of SMEs, the study was undertaken as the author had a firm belief that SMEs play a critical role in the development of the economies where they are operating. The objective of this research was to provide solutions for an efficient bank relationship management by SMEs. The case study approach was used to analyse the data and evaluate the impact of those issues on the SMEs and the understanding of their CRM compliance capacity. The analysis of the situation has shown that SMEs were key development actors in those countries and they were severely affected by the lack of financing to improve their viability and growth.

Banks were identified as the more efficient source of finance to SMEs It was established, after the analysis of a survey conducted among bank employees that SMEs were unable to cope with the Customer Relationship Management requirements of Banks. Qualitative and quantitative data from primary and secondary sources was used to enhance the validity, reliability and generalisation of the research outcomes. External generalization was neglected because the matter was analysed only within the context of conventional banking, therefore application of the outcomes in different contexts is limited. The study aimed to ensure validity by analysing the impact that a sound approach to relationship management could have on the financing of SMEs by banks. A bank relationship management charter was developed from which technical recommendations were provided to SMEs.

The main limitations of this research may originate from the fact that, in spite of the efforts delivered by SMEs to apply the guidelines provided by its outcomes, banks may not perceive the message as expected. Further research on this topic could focus on the development of an investment decision making framework for SMEs, taking into consideration the results of this MBA dissertation project.

The research activities initiated to solve the problem of SMEs difficulties to set an optimal and profitable relationship with Banks will focus on answering the questions below:

• Why financing from banks are critical funding solutions for SMEs?
• How does the approach to Customer Relationship Management as applied by banks in Emerging countries?
• What guidelines for a sound bank relationship management practice are required in order to bridge the gap between Banks and SMEs?

• 16,000 words – 74 pages in length
• Good use of literature
• Good analysis of subject area
• Well written throughout
• Includes questionnaire
• Ideal for international business and MBA students

1 – Introduction
Context Analysis
Organization Background
Research Questions and Objectives
Dissertation Structure

2 – Literature Review
Scope of the Literature Review
Definition of SME
Why Financing to SMEs Matters (Economical Impacts, Source of Finances)
Why is Bank Financing is Critical for SMEs?
Fundamentals of CRM Theories
The Implementation of CRM by Banks
Analysis of the Compliance Capacity of SMEs
Bank Relationship Management Strategies as the Optimal Solution
Bank Relationship Management Guidelines
Investing time and money to maintain and grow the relationship
Peaceful and friendly resolution of conflicts and misunderstandings
Loyalty toward an institution and its products
Adaptability and flexibility are key attitudes in a business partnership
Literature Review Summary

3: Research Methodology
Research Rationale
Methodology
Scope of Research
Case Study Method
The Questionnaire Issue
The Surveyed Population and Data Collection
Limitation of Data
Ethical Consideration
Reliability, Validity and Generalizability
Summary of Methodology

4: Research Findings and Discussion
Analysis of Data from Questionnaires and Interviews
Credit Granting Policy and Risk Perception
Relationship Management Charter Matters
The Bank Relationship Management Charter

5: Conclusion and Recommendations
Formulation of Recommendations
Recommendations to SMEs
Recommendations to Banks
Limitations, Scope of Applicability and Further Research

References

Appendix Section
Questionnaire