Can We Improve the Impact of Microfinance?

2019 ◽  
pp. 403-430
Author(s):  
Robert Lensink ◽  
Erwin Bulte
Keyword(s):  
Human Capital ◽  
Technical Assistance ◽  
End Users ◽  
Microfinance Institutions ◽  
Group Lending ◽  
Business Training ◽  
Joint Liability ◽  
Credit Contracts ◽  
The Impact

By surveying the latest literature, this chapter aims to contribute to the recent discussion on the successes and failures of microfinance. We argue that the question “does microfinance work?” is neither important nor informative. What matters is knowing when, and in which conditions, microfinance works—and for whom. We claim that the answers to these questions depend on the details of the microcredit contract as well as on the range of services that microfinance institutions provide (including non-financial ones). We point at two important reasons why the impact of several microcredit programs is lower than expected: (1) the rigidness of credit contracts, and (2) the human capital of end-users. As reforming contract terms and building human capital via business training and technical assistance are costly, we argue that perhaps subsidies are needed. We focus on studies dealing with end-users, and pay specific attention to the evolving discussion on group lending and the role of joint liability to reduce asymmetric information problems and improve repayment rates. We also discuss the literature focusing on the recent shift of several microfinance institutions to individual lending, and the related trend toward commercialization of microfinance.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

Human capital assessment model based on a single digital platformof scientific and educational resources

2021 ◽  
pp. 107-120
Author(s):  
Viktor Medennikov
Keyword(s):  
Mathematical Model ◽  
Human Capital ◽  
Quality Education ◽  
Educational Resources ◽  
Assessment Model ◽  
Educational Institutions ◽  
High Quality ◽  
High Quality Education ◽  
The Impact

The article substantiates the need to re-evaluate the role of human capital in the development of society in the digital age. Since high-quality education is the main direction of the formation of human capital in any country, the importance of creating an information space for scientific and educational institutions is demonstrated. A methodology for assessing the level of human capital on the basis of information scientific and educational resources is proposed. The author presents results of calculations obtained by this method on the example of agricultural educational institutions and a mathematical model for assessing the impact of human capital on the socio-economic situation of the regions.

Factors influencing the borrower loan size in microfinance group lending: a survey from Indian microfinance institutions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sunil Sangwan ◽  
Narayan Chandra Nayak
Keyword(s):  
Size Variation ◽  
Primary Data ◽  
Individual Member ◽  
Limited Information ◽  
Microfinance Institutions ◽  
Group Lending ◽  
Content Type ◽  
Loan Size ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of the cost of microfinance intermediation on borrowers’ loan size. The identified transaction cost and credit risk factors tell about what a lender takes into accounts while screening and allocating loan amounts to the borrowers, where the lender has limited information about the client’s ability to repay. Design/methodology/approach The analysis is based on the primary data collected from a sample of 498 microfinance institutions (MFI) linked group clients covering two microfinance leading states of India. Findings Empirical findings suggest that the cost of microfinance intermediation has an impact on borrowers’ loan size. To reduce the cost, the MFIs lend big loans to clients having a high income, assets, land size, lower informal borrowings and having longer loan experiences. In MFI lending, the younger and less educated people are the ones who demand bigger loan amounts. The geographical distance of borrowers’ location from MFI offices, group size and interest rate are the other factors that influence the loan size. Originality/value The past empirical works seem to have not focused on how the cost of microfinance intermediation creates loan size variation among the borrowers in joint liability group lending. The endogeneity problem has not been resolved. The present article thus identifies the factors that influence the individual member loan size by using two-stage least squared regression to tackle the issue of endogeneity.

scholarly journals Remote work and human capital: new challenges and threats (international experience)

2021 ◽  
pp. 107-119
Author(s):  
Oleksandr Burov
Keyword(s):  
Artificial Intelligence ◽  
Human Capital ◽  
Data Science ◽  
Well Being ◽  
Business Environment ◽  
Remote Work ◽  
Science Data ◽  
Creative Abilities ◽  
The Impact

Keywords: human capital, remote work, cybersecurity, workforce, digital economics The article considers the role of human capital in the transitionto the remote work. The analysis of world changes in the field of safe and effectiveuse of digital business environment and qualification of workforce in the conditions ofgrowth of remote work is carried out. The analysis was conducted in the following areas:general features of the digitalizing in crisis and innovation, a new paradigm of business«Data is the new gold», the organization of the workforce in the transition to teleworking,the priorities of today's professions, the problems of cybersecurity in teleworking. It has been articulated that the main requirements for the today’s workforce are intellectualand creative abilities, competence in the field of creation and use of ICT, bigdata (data science, data mining, data analytics) and artificial intelligence, the role ofwhich has grown even more due to the COVID-19 pandemic. The human component ofintellectual capital (in the form of knowledge, skills and competencies, as well as intellectualand creative abilities) is gaining new importance in the digital economy.The analysis of relationship of the crisis and innovation made on the basis of the ClarivateDerwent report has demonstrated the impact of the pandemic on the global lifecycle of research and innovation projects in the first half of 2020, namely that COVID-19violated innovation strategy of the innovative leaders worldwide. The analysis hasdemonstrated: in the new conditions of accelerated digitalization, ingenuity and speed ofdecision-making and innovation are needed more than ever. These priorities will affectthe world economy in the coming year.Special attention in analysis has been paid to the new business paradigm related touse and role of data. It was highlighted that digitization generates vast amounts of datathat offer many opportunities for business, human well-being, and the environment. As aresult, new capabilities and opportunities arise for business with the ecosystem of cooperationand partnership, as well as collaboration of stakeholders.The core of changes in digitalization is reskilling and upskilling of the workforce accountingnew workplaces and new requirements for them. It is recognized that talentmanagement and creative people selection can be the main engine in future transformationof economics, and workforce becomes an effective pole for investments. At the sametime, it is argued that remote worker is outside the scope of corporate protection, and virtuallyany production information, like human capital, becomes much more vulnerablein such conditions and requires appropriate cybersecurity methods.As a conclusion, it is articulated that the ability of companies to use big data is beginningto play a significant role in the economy, which in turn requires the involvementand training of data processing and analysis specialists. The direction of professions thatis being actively formed recently — data science — is one of the most priority in the labormarket. At the same time, the labor market needs skills and abilities in the field of interpersonalcommunication (soft skills), which are able to ensure the effective operation ofpeople and systems of hybrid intelligence «human-artificial intelligence».For the further research it has been recommended a comprehensive study of protectionof objects and subjects of intellectual property in open networks.

scholarly journals The Impact of Investment in Human Capital on the Exports of Goods and Services

2021 ◽  
Vol 2 (2) ◽  
pp. 161-192
Author(s):  
Samina Siddique ◽  
Zafar Mahmood ◽  
Shabana Noureen
Keyword(s):  
Human Capital ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Developed Countries ◽  
Business Environment ◽  
Least Square ◽  
Goods And Services ◽  
Foreign Countries ◽  
The Impact

With the growth of services economy worldwide, it has become essential for policymakers to comprehend the export competitiveness of nations to identify offshore export locations or alternatively offer their own sites as an exporting location. Human capital investment is considered as a key component in attracting foreign countries for outsourcing purposes. Earlier studies have shown mixed role of human capital investment on off shoring activities. This study assesses the effects of control variables (business environment, wages and IT infrastructure) and human capital investment on export of goods and services from the selected Asian outsourcing countries. Panel Estimated Generalized Least Square (EGLS) technique is used with country weights to specifically overcome the problem of autocorrelation. Empirical findings show that investment in human capital is significant for both goods and services exports. We found a large impact of human capital investment on exports of goods and services in selected Asian countries as compared to selected developed countries. Empirical findings further suggest that human capital is more essential for export of goods than export of services. From these findings, the study draws important implications for policymaking in countries who intend to offer themselves as an attractive location for exporting and for those who intend to locate their production activities overseas.

scholarly journals Determinants of Micro-Enterprise Success through Microfinance Institutions: A Capital Mix and Previous Work Experience

2020 ◽  
Vol 21 (2) ◽  
pp. 803-823
Author(s):  
Waseem Ul Hameed ◽  
Hisham Bin Mohammad ◽  
Hanita Binti Kadir Shahar
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Work Experience ◽  
Financial Capital ◽  
Primary Data ◽  
Research Approach ◽  
Capital Social ◽  
Microfinance Institutions ◽  
Enterprise Success

The prime objective of the study is to highlight the role of the capital mix (financial capital, social capital, human capital) on women micro-enterprise success with moderating role of previous work experience. Women owned micro-enterprise success is less as compared to the male owned micro-enterprsie, particularly in Pakistan. Rate of faliure in women micro-enterpeise is more, that is the reason women community is one of the most vulnerable group worldwide. It is evident from literature that less attention has been paid to highlight the importance of three types of capital for women micro-enterprise. To adress this issue, the current study adopted quantitative research approach and based on cross-sectional research design. Primary data was collected by using 5-point Likert scale. Questionnaires were distributed among the owners of women micro-enterprise in Pakistan by using area cluster sampling. SmartPLS 3 was used to analyze the data. It is found that financial capital, social capital and human capital has significant positive relationship with women micro-enterprise success and previous work experience moderates the relationship. Hence, this study contributed by developing a unique framework for women micro-enterprise success. It will be beneficial for practitioners to enhance women micro-enterprise success rate.

scholarly journals The role of users in a continuous development ERP strategy: An analysis on the impact of end-users in the creation of an ERP continuous development strategy

2022 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Natália Teixeira ◽  
Álvaro Dias ◽  
Leandro Ferreira Pereira ◽  
Diogo Rocha ◽  
Renato Lopes Da Costa ◽  
...  
Keyword(s):  
Development Strategy ◽  
End Users ◽  
Continuous Development ◽  
The Creation ◽  
The Impact

The role of high-performance work system and human capital in enhancing job performance

2020 ◽  
Vol 16 (3) ◽  
pp. 195-206 ◽  
Author(s):  
Rabia Imran ◽  
Tariq Mohammed Salih Atiya
Keyword(s):  
Human Capital ◽  
Job Performance ◽  
High Performance ◽  
Service Sector ◽  
Content Type ◽  
Work System ◽  
Mediating Role ◽  
High Performance Work System ◽  
The Impact

PurposeThe aim of the current research is to examine how job performance is affected by high-performance work system (HPWS) and human capital. Furthermore, the research focuses on exploring the mediating role played by human capital in HPWS and job performance relationship.Design/methodology/approachData was collected from service sector employees. A sample of 400 respondents was selected from the chosen population using purposive sampling.FindingsThe results reveal that HPWS and human capital positively and significantly affect job performance. The impact of HPWS in creating human capital was also supported. The research also hypothesized mediating role played by human capital in HPWS and job performance relationship, and it was partially supported.Originality/valueRecent literature is evident of the relationship between performance and HPWS; however, the mechanism between these variables is still unclear (Demirbag et al., 2014). There is a need of identifying the factors that strengthen this relationship. The current research is an attempt to fill this gap by examining the effect of HPWS on job performance. Furthermore, it explores the role played by human capital in strengthening the connection of HPWS and job performance.

Role of gender on the performance of Indian microfinance institutions

2019 ◽  
Vol 34 (6) ◽  
pp. 429-443 ◽  
Author(s):  
Chandralekha Ghosh ◽  
Samapti Guha
Keyword(s):  
Social Performance ◽  
Gender Diversity ◽  
Microfinance Institutions ◽  
Content Type ◽  
Female Managers ◽  
Board Level ◽  
Managerial Level ◽  
The Impact ◽  
Female Clients

Purpose Microfinance institutions (MFIs) are known for their contribution to the women empowerment and poverty alleviation but it is not clear about the role of gender on the performance of this industry. It is important to explore the representation of both the gender in three levels, namely, decision-making, day-to-day management and implementation of the micro-financial services. This study aims to examine the impact of female board members, female managers and female field officers on the financial and social performance of the MFIs. Design/methodology/approach The authors have used random effect panel data analysis. The study covers 104 MFIs operating in India. The time period of the analysis is from 2010 to 2014. Findings The study has shown that as the number of female directors within the board increase there is an increase in cost per borrower. This is an indication that more female clients are being targeted. The increase in number of female managers leads to an increase in the number of active borrowers. The increase in the number of female staff members leads to an increase of operational self-sufficiency and yield of the gross portfolio. Research limitations/implications The present study has faced a lot of limitation due to the non-availability of the secondary data on the governance system of the microfinance industry. The study could not be undertaken for an extended period because of the unavailability of data for a long period. Practical implications This study has highlighted the role of gender in case of performance of microfinance institutions. The gender diversity at the field level has shown to enhance the financial performance of the MFIs. So, the MFIs should try to bring gender diversity at the operation level. Social implications This study has shown that an increase of woman directors at the board level increase female clients of MFIs. The increase of female managers also enhances number of female clients. So, the gender diversity at the managerial level and director level help MFIs to meet their social performance by reaching to more number of needy female clients. Originality/value The gender diversity at the three levels, namely, board level, managerial level and field operation level has not been analyzed in the Indian context. In India MFIs mainly target the female clients so in this context having gender diversity at the three levels of operation of the MFIs, which can improve both the financial and social performance of the MFIs.

scholarly journals The Impact of Labor Migration on Human Capital Development

2021 ◽  
Vol 12 ◽  
pp. 0
Author(s):  
Aleksandr Grebeniyk ◽  
Ivan Aleshkovski ◽  
Anastasiya Maksimova
Keyword(s):  
Human Capital ◽  
Labor Migration ◽  
Country Of Origin ◽  
Destination Country ◽  
International Level ◽  
Negative Effects ◽  
Human Capital Development ◽  
Capital Development ◽  
The Impact

The growing role of labor migrationis one of the most notabletrendsininternational migrationflows.Thismigration has become an important factor ineconomic development and a source of the increasing interdependence of countries and regions intoday’sglobalizedworld. It impactsmigrants’ country of origin as well as the destination country, chiefly affecting human capital in both groups of nations.This article systematizesthe positive and negative effects of labor migration focusing on humancapitalwhile suggesting asystem of indicators characterizing such effects.Special attention is paid to the analysis of policies related to suchmigration. This study explains how countries of origin and destination must carry outeffective and fair managementof labor migrationto make the most of itsbenefits at an international level.

Sign in / Sign up

Export Citation Format

Share Document