Expounding Dynamics of Tacit Knowledge Critical to Credit Decision Making: Juxtaposed Findings of GRA and RIDIT

This study explores importance of Tacit Knowledge (TK) sharing for formal loan makers in Pakistan. Main objective of the study is to expound, conceptualize and hierarchicalize the factors of TK critical to credit decision making. The study follows positivist approach and overall research design consists of literature review, field survey and data analyses. Data was collected from credit officers of Pakistani banks. Following the triangulation approach for confirmation and comparison of results, multiple techniques viz EFA, GRA and RIDIT were employed. Results of EFA showed that there are eight major dynamics of TK. Findings of GRA revealed that TK about recovery of loans is the most important factor hence occupies the highest GRA rank, whereas, the TK about resources of borrowers occupies the lowest rank. RIDIT analysis showed that TK about multitude of business sectors is the most important factor hence occupies the highest RIDIT rank, whereas, TK about capacity to repay the loans occupies the lowest rank. Juxtaposition of results of GRA and RIDIT revealed that TK gained during recovery of loans is one of the most important factors. It is a seminal study in the area of knowledge management particularly in context of Pakistani banks based on original data collected in field setting. The study gives insight of critical factors of TK, which has high value for credit personnel in banks. The results are useful for decision makers in banks, academicians and researchers.