Is employee-client matching good for firms targeting the bottom of the pyramid? A study of microfinance institutions
International Journal of Development Issues
ISSN: 1446-8956
Article publication date: 5 February 2021
Issue publication date: 16 March 2021
Abstract
Purpose
The purpose of this study is to determine whether there exists employee-client matching at the bottom of the pyramid (BOP) and the most favourable employee-client categorization in terms of employee productivity when serving the BOP market. This is important in a bid to determine how to effectively operate at the BOP given the market’s unique characteristics.
Design/methodology/approach
This study uses two methods depending on the research question. First, a one-way analysis of variance (ANOVA) is used to determine the different employee-client categories based on socio-economic status. Second, fixed effects analyses are performed based on these categories to determine the most suitable employee-client category.
Findings
The results show the existence of employee-client matching based on similar socio-economic status. However, multivariate testing reveals that the mismatch category, where employees are of higher socioeconomic status than the clients, generates more favourable employee productivity. Moreover, this result may be contingent on the geographical location of the firm.
Practical implications
The findings are important for human resource management particularly the employment strategy of BOP firms. It suggests the need to consider employee profiles and client profiles when deciding which new markets to target.
Originality/value
The paper uses a global database of microfinance institutions as a case of BOP firms to investigate employee-client matching at the bottom of the pyramid.
Keywords
Acknowledgements
Funding details: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Disclosure Statement: No potential conflict of interest was reported by the authors.
Citation
Otiti, N., Andersson, K. and Mersland, R. (2021), "Is employee-client matching good for firms targeting the bottom of the pyramid? A study of microfinance institutions", International Journal of Development Issues, Vol. 20 No. 1, pp. 1-23. https://doi.org/10.1108/IJDI-04-2020-0069
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited