Application of an Approach Based on Graph Theory to Identify the Internal Advice Network in Bank & its Relation to Increased Profitability (Case Study of an Internal Private Bank)

Mousavi, Seyed Farid; Khalili Damghani, Kaveh; Gazori-Nishabori, Arezoo

doi:10.22034/jifb.2022.360512.1385

Application of an Approach Based on Graph Theory to Identify the Internal Advice Network in Bank & its Relation to Increased Profitability (Case Study of an Internal Private Bank)

Document Type : Original Article

Authors

seyed farid mousavi ¹

kaveh khalili damghani ²

Arezoo Gazori-Nishabori ³

¹ Department of Management- Kharazmi University- Tehran- Iran

² Department of Industrial Engineering، South Tehran Branch، Islamic Azad University، Tehran، Iran

³ Department of Industrial Engineering- South Tehran Branch- Islamic Azad University-Tehran-Iran

https://doi.org/10.22034/jifb.2022.360512.1385

Abstract

The vastness and complexity of human societies and the importance of figuring out the structure of interpersonal communications to explore the effect of these communications to achieve recognized, precise and predetermined goals have highlighted the role of consulting networks and their analyses over the past decades. Today activities of large companies of the world are pertinent directly to the evaluation and analysis of social networks. Meanwhile, since organizations and enterprises are often formed and continue to operate to make profits, managers try so that nothing hurts their profitability. Service companies whose income is mainly derived from services they procure and are highly reliant on their human force need more than other companies to identify exact position and role of employees in formal and informal structures of the organization in attracting and maintaining customers in order to boost revenue through encouraging counseling networks and promoting knowledge and knowhow of employees in various levels of the organization. This study in an attempt to explore its prediction goals used a network structure and collected behavioral data of employees working in 36 branches of a private bank to detect their internal counseling network. Then network graph was made and profitability prediction analysis was performed by determining the association relatively strength of internal counseling networks and bank profitability via regression model. According to the results obtained from a nonlinear regression model, this study supported the association between the independent variables and the dependent variables.

Keywords

Profitability

Bank

Graph Theory

Advice Network

Regression