Power distance and gender gap perception on the credit risk of rural banks: study of social and economic mission of Indonesian rural banks

The Indonesian government has been trying to accommodate the needs of the micro, small, and medium enterprises (MSMEs) for legal financing. Indonesian rural banks (IRBs) as private bank - have social and economic missions to accommodate it. Consequently, a good relationship between the IRB's management and its customers, namely MSMEs, impacts its financial performance. It is built from organisational culture, such as power distance and gender equity. This study uses primary data from a questionnaire and secondary data from IRBs' financial reports for 2016-2019. The smaller the gap between superiors and subordinates and the smaller the gap between genders will decrease the credit risk. A good atmosphere in an organization encourages the members to pursue the organisation's goal rather than the individual's. This study contributes to the cognitive social theory, namely the social environment around individuals, which plays a role in cognitive development and individual behaviour.

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Publication Details

Journal
International Journal of Monetary Economics and Finance
Published
2025-01-01
DOI
https://doi.org/10.1504/ijmef.2025.148107
Primary Topic
Microfinance and Financial Inclusion
Type
article
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article

Power distance and gender gap perception on the credit risk of rural banks: study of social and economic mission of Indonesian rural banks

Nung Harjanto, Indrian Supheni, Yavida Nurim, Muhammad Yudhika Elrifi et al.
International Journal of Monetary Economics and Finance
Microfinance and Financial Inclusion
article

Power distance and gender gap perception on the credit risk of rural banks: study of social and economic mission of Indonesian rural banks

Nung Harjanto, Indrian Supheni, Yavida Nurim, Muhammad Yudhika Elrifi, Nur Rizki Wijaya, Angelia Pribadi
article en

Abstract

The Indonesian government has been trying to accommodate the needs of the micro, small, and medium enterprises (MSMEs) for legal financing. Indonesian rural banks (IRBs) as private bank - have social and economic missions to accommodate it. Consequently, a good relationship between the IRB's management and its customers, namely MSMEs, impacts its financial performance. It is built from organisational culture, such as power distance and gender equity. This study uses primary data from a questionnaire and secondary data from IRBs' financial reports for 2016-2019. The smaller the gap between superiors and subordinates and the smaller the gap between genders will decrease the credit risk. A good atmosphere in an organization encourages the members to pursue the organisation's goal rather than the individual's. This study contributes to the cognitive social theory, namely the social environment around individuals, which plays a role in cognitive development and individual behaviour.

International Journal of Monetary Economics and FinanceVol. 18(2/3)
Sebelas Maret University (ID), Universitas PGRI Semarang (ID), Janabadra University (ID), Pancur Kasih Association (ID)
Gender equality
Openalex Percentile: Top 70%
Microfinance and Financial Inclusion
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