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The purpose of this paper is to empirically relate subordinate board structures with improved financial and social performance in microfinance institutions (MFIs).

The research question is analyzed using a panel data from 23 MFIs in Ethiopia over a period of 2006-2011. Random effects panel data estimation is applied to analyze the link between board committees and MFI’s performance.

In MFIs with larger than average boards, the findings demonstrate significant ties between financial and outreach performance and how their boards are structured. The structure of board committees moderates the relation between board size and financial and outreach performance measures. Importantly, board committee benefits MFIs through better operational self-sufficiency, lower operating expenses, greater outreach to customers, and outreach to poorer customers using average loan size as the proxy.

Practitioners within microfinance sector, and those operating in advisory and regulatory roles to the sector could benefit from the argument advanced in the paper in that normative recommendation to restructure boards or establish committees requires reevaluating the board characteristics vis-à-vis the optimal monitoring, controlling, and advising needs of the institution.

Prior literature focuses on who sits on boards, how large are the boards, and how independent are they. This paper advances the understanding of the structure of board committees and how this may affect the performance of MFI. This approach provides better representation of director’s role and is thereby a good test of board effectiveness.

This paper examines the influence of relationship lending on the financial performance of Savings and Credit Co-operative Societies (SACCOS) in Tanzania.

A panel data of 460 observations representing 115 SACCOS from Tanzania was used. Descriptive statistics and panel regression models were employed to analyse the data.

The results show that the duration of the relationship is negatively and significantly related to SACCOS financial performance, substantiating the relationship lending theories. The number of relationships has an insignificant effect on financial performance.

The study focused on the duration and the number of relationships as aspects of relationship lending. The paper is limited in the sense that other aspects of relationship lending such as the concentration of relationships that could affect financial performance are not included in this study. The results apply to SACCOS and not to other microfinance institutions with strong bargaining power.

This study positions relationship lending in the SACCOS context where the market for the wholesale loan is less competitive.

The purpose of this article is to examine the effects that dynamic incentives and the borrowing histories of clients of informal lending institutions have on loan repayment performance, in particular, the extent to which multiple borrowing and progressive lending affect the repayment of loans.

The paper uses a data set of 835 borrowers drawn from an informal lending institution in Tanzania. Descriptive analysis and econometric models are used to test the developed hypotheses.

Whereas clients with multiple loans are associated with poor loan repayment, progressive lending contributes to positive repayment outcomes. Multiple borrowers face increased debt levels and thereby an increased inability to meet their repayment obligations; in contrast, progressive lending by building up a lender–client relationship helps clients to obtain higher loans with a minimum amount of screening.

This was a cross-sectional study based on a sample of individual clients drawn from a single institution. However, since the majority of clients had also taken out loans with other financial institutions, the sample is considered to be representative.

A client’s past repayment performance and multiple loan history must be assessed so that multiple borrowing can be prevented and credit absorption capacity can be gauged more accurately. The repeated nature of the interactions and the threat to cut off any future lending (if loans are not repaid) can be exploited to overcome any information deficit.

This study was conducted in a context in which the degree of information sharing was low and institutional access to clients’ credit histories was limited. It contributes knowledge on how lenders minimise the risk flowing from the ex ante information gap and moral hazards arising from the ex post information gap.

The purpose of this paper is to investigate the composition and role of a board of directors in a family-owned microfinance institution (FO-MFI) in Tanzania.

The paper is based on a longitudinal analysis of the board practices based on boardroom observations for the period between 2012 and 2015. The study further collected and analyzed qualitative data from interviews with board members, management, and institution staff.

The findings indicate that even though external board members were appointed as a result of their diverse expertise and skills, their personal relationships with shareholders, life-cycle stage of the institution, and the nature of the industry influenced their selection. It was also found that the board played more of the service role in strategy formulation, resource mobilization, and networking, and, through that, members were also able to exercise control of the firm.

Because this paper is based on a qualitative approach, it suffers from the challenge of generalization. However, numerous research issues have been raised that require further investigation.

This study contributes to the governance literature by showing what really happens in a family-owned firm, as it is based on a unique data set drawn from the boardroom of the FO-MFI in a context of a developing economy. This context is unique, given that most private MFIs operating as family enterprises do not have a professional board of directors. The study shows how the board contributes to a strategic direction of the firm in which the management and ownership are not separated, and the first generation is running the firm.

The purpose of this paper is to examine the effects of board composition on the profitability of banks in Tanzania. First, it examines the differences between local and foreign-owned banks in terms of their boards and profitability, and then the contribution of board composition to banks’ profitability.

The paper utilizes a secondary panel data set of information on the boards, their operations and financial statements of 35 banks. The data were collected between 2009 and 2013. The authors tested the stated hypotheses using descriptive and econometric analyses.

The results show a significant difference in board composition and profitability between local and foreign-owned banks. Local banks have a higher income and profits. With their contextual knowledge they are able to attract diverse board directors who contribute positively to their performance. The paper also found that large boards and those with women on them were associated with high profitability.

The study focused on three aspects of boards, which are size, foreign directors and women’s representation. The paper is limited in the sense that other aspects of composition that also affect performance are not included in the study.

The paper suggests that in order to maximize profitability, banks should increase the number of directors. Many board members can share skills and knowledge, which can improve performance. Women are underrepresented on boards. With current changes in policy and education in emerging countries, there is a need to increase their representation.

This study contributes to the agency theory by showing that large boards are indeed efficient at monitoring and bringing in profits, especially in an emerging economy where there are multifaceted risks at country and company level. These risks require shareholders and investors to have a much better understanding of the banks and that is where a large board plays a key role.

This study examines the relationship between policyholders’ psychographic characteristics and demand decisions for life insurance products in Uganda.

The study is based on a cross-sectional survey. Using a purposive sampling method, 389 questionnaires were administered to life insurance policyholders in the four geographical regions of Uganda. Partial least squares structural equation modeling (PLS-SEM) was employed to analyze the primary data, specifically to test the relationships between the dependent and independent variables.

The findings indicate a positive and significant influence of psychographic characteristics on demand decisions for life insurance products. In addition, the analysis indicates that the two first-order constructs of psychographic characteristics, namely price consciousness and consumer innovativeness, are positive and significant predictors of demand decisions for life insurance products. In contrast, the third first-order construct religious salience, exhibits a negative and nonsignificant effect on demand decisions for life insurance products.

For insurance practitioners, to influence demand decisions, they should emphasize premium-related appeals in their marketing messages (price consciousness) ignore product decisions based on religious beliefs and norms (religious salience). They should also ensure that insurance products are highly trustable and experiential (consumer innovativeness). For insurance policymakers, it offers an in-depth understanding of customer psychographic characteristics, which can be used to identify exploitative information embedded in certain marketing campaigns targeting specific psychographic characteristics, for better regulation.

The study provides a basis for understanding lifestyle and personality characteristics (psychographics), which may influence demand decisions for life insurance products in a developing country like Uganda, where the insurance industry is at an early stage of development.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0440

This paper examines the relationship between behavioral biases, and demand decisions for life insurance products in Uganda.

Data were collected from 351 life insurance policyholders in Uganda. The authors used a cross-sectional survey by applying a structured questionnaire. Descriptive analysis was conducted and hypothesized relationships between the constructs were evaluated through the use of structural equation modeling.

Results indicate that, behavioral biases are significant predictors of life insurance demand among Ugandan policyholders. Also, the two behavioral bias variables (heuristic bias and prospect bias) are significant predictors of demand decisions for life insurance products.

These results are helpful for both insurers and regulators. For insurers, it is now evident that demand decisions for life insurance products are not fully rational. It is imperative for insurers to simplify life insurance product information (heuristics), integrate product education and widen dissemination of product information (prospect bias) to allow policyholders to come up with optimal demand decisions. While for insurance policymakers, the study provides an understanding of behavioral biases. With such insights, policymakers can identify exploitative and deceptive information that target policyholders to better guide life insurance documentation and product designs.

This study is the first to offer insights into behavioral biases' influence on demand decisions for life insurance products in a developing country like Uganda. By integrating prospects and expected utility theory, this study examines rationality and irrationality in demand decisions for life insurance products.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2023-0201

The purpose of this paper is to establish the link between customer information sharing and new service development.

Through a survey of tourism firms, 295 questionnaires were collected in three large tourism locations in Tanzania. Thereafter, the hypotheses were tested by structural equation modeling (SEM) after undertaking both factor analysis and confirmatory factor analysis.

Results indicate that there is a positive association/link between customer information sharing and new service development. The link here expresses the association that exists as customers share information and the extent of use of this information for the firm benefit in facilitating new service development. Specifically, customers post service information and customer interaction behaviors positively support new service development; however, customers’ pre-service information revealed no link.

These results offer practical evidence that post service information and interaction behaviors form the groundwork for development of new services in service-related organizations.

These results evidence that customer post service information and customer interaction behaviors form the groundwork for development new services in tourism. Hence, the study strengthens the value co-creation and innovation views in the service arena by extending knowledge in the use of both the service and the customer environment for service improvement.

Savings help to provide for future personal and households needs. The purpose of this paper examined Tanzanians’ determinants of saving. It studied the relationship between individual characteristics (gender, marital status, age, education level and financial education) and saving behaviour.

The paper used 2017 national baseline survey data with 8,959 observations from all over Tanzania. Descriptive analysis and econometric models were used to test the developed hypotheses.

Descriptive results show that Tanzanians mainly associate saving with setting money aside to keep it safe for future use. The results also show that most Tanzanians keep their money at home – a very informal way of saving. The results indicate that age and education level are key characteristics that determine positive saving by Tanzanians.

This study used FinScope survey data which was limited to Tanzania. Since FinScope surveys are done in other African countries, using similar methodologies, it would be interesting to investigate similar trends in other contexts.

The study recommends promoting awareness of saving in formal institutions. This will benefit not only customers but the financial institutions and mobile telecom companies themselves.

This study contributes to the life-cycle theory by showing how families, societies and exposures influence individuals to save. Gender and marital status seem to play a lesser role than social- and exposure-related aspects of age and education. Exposure and social interactions are key determinants in the attitude to saving.