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1 – 10 of over 2000
Article
Publication date: 24 August 2012

Lin He and Dongsheng Liao

The purpose of this paper is to analyze the sustainability of Credit Non‐Governmental Organizations (CNGOs) such as DAYBANG.

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Abstract

Purpose

The purpose of this paper is to analyze the sustainability of Credit Non‐Governmental Organizations (CNGOs) such as DAYBANG.

Design/methodology/approach

This paper investigates and describes the operating details, through the web, of DAYBANG using SWOT analysis.

Findings

By the means of SWOT analysis it is found that clarified information, credit scoring system and the law of large numbers set up by DAYBANG will decrease the asymmetric information influence, which will result in adverse selection and lowering of the transaction cost; while operational risk and moral hazard are the weaknesses to be overcome. SO, ST, WO, WT strategies deserve consideration.

Originality/value

Researches on informal finance have focused on loans between relatives, friends and usurers. Few literatures, however, have studied the Credit NGOs (CNGOs). DAYBANG is a newly‐emerging CNGO which has resulted in immense public interest because of its Web operating platform. This paper discloses its operational characteristics, using SWOT analysis, which expands the research on informal finance.

Article
Publication date: 4 June 2020

Atthaphon Mumi, George Joseph and Shakil Quayes

Microfinance institutions (MFIs) play an important role in economic development, with the dual objectives of social outreach and financial self-sufficiency. The purpose of this…

Abstract

Purpose

Microfinance institutions (MFIs) play an important role in economic development, with the dual objectives of social outreach and financial self-sufficiency. The purpose of this study is to examine the influence of organizational structure and variations in legal systems on the MFI dual performance goals.

Design/methodology/approach

Using a sample that includes 1,518 MFIs from 105 different countries over a period of 20 years, this study analyzes the data by applying a model that includes six categories of organizational structures and variations of legal systems, including both civil and common law, with accounting performance measures for the dependent variables.

Findings

The analyses provide robust results indicating that MFIs structured as non-governmental organizations (NGOs) have better social outreach than all other types of MFIs and exhibit better financial performance than MFIs registered as commercial banks or credit unions. Legal systems also played a role in MFI effectiveness.

Research limitations/implications

Given the increasing importance of MFIs on economic development globally, this study has relevance on how the impact of MFI structural characteristics and macro-level influences on their dual performance criteria can be translated into management approaches and governance policies that can increase the effectiveness of these dual (i.e. social and financial) goals.

Originality/value

This study is more comprehensive than prior research in addressing the influence of organizational structures of MFIs and legal systems on MFI dual mission, namely, its financial performance and social outreach, thereby increasing our understanding of policy implications in sustaining the MFI’s developmental role.

Details

Journal of Accounting & Organizational Change, vol. 16 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 6 July 2015

Oksan Bayulgen

The purpose of this paper is to analyze the political effects of microcredit. The author provides the theoretical connections between microfinance and political empowerment and…

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Abstract

Purpose

The purpose of this paper is to analyze the political effects of microcredit. The author provides the theoretical connections between microfinance and political empowerment and tests them in the context of Central Asia and the Caucasus, a region that is significantly lagging in political development and yet has a growing microfinance potential.

Design/methodology/approach

The author conducted a total of 100 in-depth interviews with microcredit clients in Kazakhstan and Azerbaijan in June 2010 and January 2011, respectively. The author chose my client samples randomly from two of the largest non-governmental microfinance institutions in these countries.

Findings

The findings of the survey reveal that microloans have only led to modest improvements in the socioeconomic status of the clients and had almost no effect on their political empowerment. Disaggregating the data further in terms of gender, type of loan and location of credit does not change the overall trends but reveals that to the extent that any political empowerment took place, group clients (mostly women) in urban settings were more aware and involved in political issues than individual clients in the villages.

Research limitations/implications

Even with a carefully thought-out design, it is not clear how much the responses reflect the true and complicated impact of microfinance on the clients’ lives, a challenge that may be overcome in future research with focus group analysis or an ethnographic analysis of microcredit clients over a long period of time.

Practical implications

Notwithstanding these shortcomings, these observations can help inform microfinance institutions, donor organizations and governments about the true potential of microfinance. A realization of the limits of this unique development tool may prove useful in reorienting the goals of foreign aid and designing a more effective approach to development.

Originality/value

Despite the extensive literature on the economic and social effects of microcredit, very little attention has been given to how economic empowerment generated by microcredit can translate into political empowerment at the individual level. This paper lays out the theoretical reasons for why such a relationship might exist and tests these hypotheses systematically in two countries, taking into account gender, type of loan instrument and location of the loan.

Details

International Journal of Development Issues, vol. 14 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 7 August 2017

Mauricio Cervantes, Daniel Lemus and Raúl Montalvo

The purpose of this paper is to present evidence about cultural differences between Mexico and China, and analyze their significance when implementing an innovative financial…

Abstract

Purpose

The purpose of this paper is to present evidence about cultural differences between Mexico and China, and analyze their significance when implementing an innovative financial model. Specifically, the authors analyzed the case of the Yunus model (or Grameen model), originally developed in Bangladesh and further implemented in China and Mexico.

Design/methodology/approach

This paper uses a comparative quantity study to test the cultural difference which affects the innovative financial model implementation. A materialism and credit overuse value scale (Ponchio and Aranha, 2008; Richins, 2011; Roberts and Jones, 2001) is applied to analyze cultural differences with a sample of 250 people in each country.

Findings

The results show that the survey responses are statistically significantly different in these two countries. The Mexican sample shows a greater affinity with luxury and bragging. The Chinese sample shows more responsibility toward credit. Recommendations for the implementation of the innovative financial model considering cultural differences are suggested.

Practical implications

Based on the survey results, gender equality, greater caution with young borrowers, financial education programs, and strict liability agreements to ensure credit repayment, especially for Mexico, are suggested, with the aim of enabling microfinance institutions to increase the successful implementation of the Yunus model in China and Mexico.

Originality/value

There are few existing cultural comparisons between China and Mexico. Therefore, one of the relevant contributions of this work is to shed light on the cultural differences of these two important emerging economies for future research. Additionally, the authors applied a materialism and credit overuse value scale developed to assess consumer behavior as a proxy for culture. The results are relevant for further usage of this scale as a tool to help adapt innovative financial models for application in other cultures.

Details

Cross Cultural & Strategic Management, vol. 24 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 8 May 2009

Jaclyn D. Kropp, Calum G. Turvey, David R. Just, Rong Kong and Pei Guo

This paper aims to clarify the relationship between wealth and trustworthiness with the goal of understanding why micro‐lending institutions grant loans to poor individuals…

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Abstract

Purpose

This paper aims to clarify the relationship between wealth and trustworthiness with the goal of understanding why micro‐lending institutions grant loans to poor individuals countering well‐known models of credit markets and credit rationing, such as those proposed by Stiglitz and Weiss. Micro‐credit markets appear to be based on two conjectures: the poor are trustworthy, and their willingness to pay for credit is relatively high.

Design/methodology/approach

The paper simulates trust‐based lending in an experimental setting to determine whether the conjecture that the poor are trustworthy is plausible. By conducting the experiments in the USA, a wealthy developed country, and China, a developing country where formal micro‐finance institutions have not established a visible presence, it is possible to test the conjecture and draw cross‐cultural comparisons.

Findings

The paper finds that while the absolute level of family income had no significant effect on repayment behavior, US borrowers that perceived themselves as having a family income that was relatively lower than other US households repaid at higher rates. Therefore, evidence was found that trustworthiness might be a function of perceived relative wealth or social status rather than the absolute level of wealth or income.

Research limitations/implications

The research results may be difficult to generalize because of the experimental approach and use of students as participants.

Practical implications

The paper includes implications for the administration of micro‐credit loans in China and other developing nations.

Originality/value

This paper experimentally tests a conjecture which appears to be the foundation of micro‐credit markets.

Details

Agricultural Finance Review, vol. 69 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 9 March 2021

Ann Marie Sidhu and Jane Gibbon

The purpose of this study is to examine how accounting for sustainable development (SD) in Malaysian organisations decouples economic growth from ecological consequences. The…

Abstract

Purpose

The purpose of this study is to examine how accounting for sustainable development (SD) in Malaysian organisations decouples economic growth from ecological consequences. The research analyses the empirical evidence of organisational responses and actions that purport to support SD in a developing country.

Design/methodology/approach

This study uses a discursive model of institutional theory to examine the relationship between texts, discourse and action within Clean Development Mechanism (CDM) organisations. This study uses both qualitative content and interpretive textual analysis of Malaysian organisations project design documents (PDDs) and interview transcripts to interpret and determine the “conceptions” of SD.

Findings

Documentation and interviews with Malaysian CDM organisations show that SD conceptions range from “business as usual” to weak ecological modernisation. The key narratives are both economic and technocratic but have little to do with SD concerns about ecological limitations and social equity.

Originality/value

The empirical evidence provides insights into the motivations and challenges of a developing country's commitment to SD. We perform the study in an accountability space other than corporate financial reporting. Unlike external corporate reports, PDDs are closer to the underlying organisational reality as they are internal project documents made publicly accessible through the United Nations Framework Convention on Climate Change, allowing for a more transparent evaluation. The evidence shows how the organisational approach to SD is institutionalised through the mediating role of discourse and texts used by the actors within the CDM.

Details

Accounting, Auditing & Accountability Journal, vol. 34 no. 5
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 12 January 2018

George Acheampong

The purpose of this paper is to understand the relationship between microfinance participation and entrepreneurial behaviour of Ghanaian families as well as the moderating role of…

Abstract

Purpose

The purpose of this paper is to understand the relationship between microfinance participation and entrepreneurial behaviour of Ghanaian families as well as the moderating role of the family head’s gender. It is argued from a resource-based theory perspective that microfinance is a financial resource that removes credit constraints to entrepreneurial behaviour of families. However, gender of the family head creates heterogeneity in this relationship in line with the gender theory.

Design/methodology/approach

In order to test these claims, cross-sectional data from 2,727 families on microfinance participation and household characteristics in Ghana are utilised.

Findings

The study finds that microfinance participation has a positive and significant relationship with a family’s decision to own an enterprise. Also, the study finds that female-headed families are better utilizers of microfinancial resources for entrepreneurial purposes compared to their male counterparts. This difference is a pure gender effect.

Originality/value

This finding is in contrast to the dominant stream of gender-based entrepreneurship research that suggests that women are subordinate to men and need to be helped to become “honorary men”. From a policy standpoint, solutions aimed at reversing discrimination against women in economic markets must consider women within their own right. The study makes a contribution to the literature by showing empirically the source of heterogeneity in entrepreneurial returns to microfinance participation by families.

Details

Journal of Family Business Management, vol. 8 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 15 November 2018

Emmanuel Mensah Asiedu, Susan Shortland, Yehia Sabri Nawar, Paul J. Jackson and Laura Baker

The purpose of this paper is to explore the role of mobile technology and related service platforms in supporting informal micro-entrepreneurships in rural Ghana. It aims to…

Abstract

Purpose

The purpose of this paper is to explore the role of mobile technology and related service platforms in supporting informal micro-entrepreneurships in rural Ghana. It aims to extend our knowledge through the development of a conceptual model.

Design/methodology/approach

A qualitative research design used in-depth semi-structured interviews with five micro-entrepreneurship owners in the Kwahu South District in the Eastern region of Ghana. Identification of potential case firms was facilitated by a local official. Interview data were analysed thematically.

Findings

Mobile technology engendered pride and emotional connectedness and, being easy to use, helped to increase business confidence. Adoption advantages included improved communications with customers and business partners, and effective stock control, providing competitive advantage. Further understanding of mobile technology’s role in improving business processes is needed.

Research limitations/implications

This exploratory research is based on five micro-entrepreneurships in one Ghanaian rural area. Further research is needed using larger samples, additional locations and sectors and larger businesses, to identify other factors influencing mobile technology adoption and associated benefits and problems.

Practical implications

Government policy supporting growth of informal micro-entrepreneurships using mobile phone technology could increase economic advantage. Micro-business owners need education and training in understanding business processes. Telecommunications companies can highlight technological, business and socio-cultural benefits of mobile phone adoption in rural Ghana.

Originality/value

The paper draws upon the experiences of a range of rural-based Ghanaian micro-entrepreneurships to propose a model setting out and linking the technical, business and socio-cultural benefits of mobile phone adoption in supporting business processes.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 11 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 27 November 2017

Natalia Vershinina, Kassa Woldesenbet Beta and William Murithi

The purpose of this paper is to conceptualise how various value dimensions of Harambee, the Kenyan culture, affect the fostering of entrepreneurial behaviours. Theoretically, we…

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Abstract

Purpose

The purpose of this paper is to conceptualise how various value dimensions of Harambee, the Kenyan culture, affect the fostering of entrepreneurial behaviours. Theoretically, we draw upon perspectives that view culture as a toolkit and use cultural variables provided by Hofstede to examine the links between national culture and entrepreneurial endeavours in an African context.

Design/methodology/approach

The paper is based on review and synthesis of accessible secondary sources (published research, country-specific reports, policy documents, firm-level empirical evidences, etc.) on the topic and related areas to understand and advance research propositions on the link between enterprising efforts and national culture specific to the Kenyan context.

Findings

Several theoretical propositions are offered on themes of collective reliance, social responsibility, enterprising, resource mobilisation and political philanthropy to establish relationships, both positive and negative, between values of Harambee and entrepreneurial behaviours. Further, the study provides initial insights into how actors blend both collectivistic and emergent individualistic orientations and display collective identity in the process of mobilising resources and engaging in entrepreneurship.

Research limitations/implications

The conceptual framework presented bears a considerable relevance to the advancing theory, policy and practice associated with the national culture and entrepreneurial behaviour in the African context and has potential to generate valuable insights.

Originality/value

This original study provides a springboard for studying the relationship between African cultural context and entrepreneurial behaviours.

Details

Journal of Small Business and Enterprise Development, vol. 25 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 2 November 2015

Khan-Pyo Lee and Seong-Jin Choi

This paper aims to present inter-firm networks in China by examining the impacts of previous market ties, nonmarket ties, and more importantly their interaction on the formation…

Abstract

Purpose

This paper aims to present inter-firm networks in China by examining the impacts of previous market ties, nonmarket ties, and more importantly their interaction on the formation of exchange relationships.

Design/methodology/approach

The authors test their hypotheses using inter-firm exchange relationships between 19 automakers and 312 suppliers in China. The authors conducted empirical tests with multilevel logit model.

Findings

The authors find that both previous nonmarket ties and market ties have positive impacts on the formation of the next exchange relationships, while market ties and nonmarket ties are substitutes in the exchange relationships formation.

Originality/value

This paper provides unique theoretical framework on how firms in emerging markets promote the knowledge exchange with help of market and nonmarket ties. Especially, our findings on the substitute effects between networks have important practical implications to understand the historical development of exchange relationship in transition economies, such as in China.

Details

Chinese Management Studies, vol. 9 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

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