The role of risk rationing in rural credit demand and uptake: lessons from Kyrgyzstan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lena Kuhn ◽  
Ihtiyor Bobojonov
Keyword(s):  
Low Income ◽  
Perceived Risk ◽  
Risk Sharing ◽  
Individual Risk ◽  
Supply Side ◽  
Potential Contribution ◽  
Content Type ◽  
Factors Influencing ◽  
Supply Side Factors

PurposeLack of access to credit is commonly held responsible for slow agricultural and rural development in low- and middle-income countries. This paper aims to investigate the contribution of demand- and supply-side factors, particularly the role of risk rationing, on credit application and uptake in the case example of Kyrgyzstan.Design/methodology/approachToward this aim, the study explores the determinants of credit behavior of 1,738 Kyrgyz sample farm households from 2013 to 2016 waves of the nationally representative “Life in Kyrgyzstan” (LIK) dataset along a hierarchical regression model, differentiating between factors influencing individual demand for credit and factors influencing supply for credit.FindingsThe results of our analysis indicate the relative importance of demand-side factors for credit applications, reflecting farmers' perceived risk of credit default and loss of collateral. Meanwhile, supply-side factors, such as real credit constraints and collateral requests, have a stronger influence on credit uptake rates and overall loan sums. These findings highlight the role of risk rationing for agricultural investment, suggesting a stronger focus of development policy on improving risk-sharing mechanisms for farmers, e.g. by developing the agricultural insurance sector.Originality/valueThe paper contributes novel evidence on the role of risk rationing in shaping the demand for formal credits for increasing agricultural and rural investment in low-income transition economies. Previous research has mostly focused on the role of credit supply, thus underrating the potential contribution of individual risk attitude, risk experience and risk sharing.

scholarly journals QUANTITY, PRICE AND RISK RATIONING IN RURAL CREDIT MARKETS – AN EMPIRICAL ANALYSIS OF KYRGYZ RURAL CREDIT DEMAND AND UPTAKE

2021 ◽  
Author(s):  
Lena Kuhn ◽  
Ihtiyor Bobojonov
Keyword(s):  
Interest Rates ◽  
Perceived Risk ◽  
Risk Sharing ◽  
Credit Rationing ◽  
Supply Side ◽  
Demand Side ◽  
Rural Credit ◽  
Credit Default ◽  
Nationally Representative ◽  
Supply Side Factors

Low access to rural credit is hampering agricultural and rural development in developing and transition economies. Credit rationing or quantity rationing, defined as insufficient credit volumes at adequate interest rates and collateral requirements, is commonly been hold responsible. This paper is researching into the contribution of demand-side factors like internal price rationing and risk rationing, in addition to supply-side factors along the case example of Kyrgyztan. Towards this aim, we explore the determinants of credit application and take-up along the nationally representative Life in Kyrgyzstan (LIK) dataset of 3000 rural households in Kyrgyzstan. The results of hierarchical analysis indicate that are restrained by demand-side factor that reflect farmers’ perceived risk of credit default and loss of collateral. Supply-side factors, such as real credit constraints and collateral requests, meanwhile have a stronger influence on credit applications and take-up rates. These findings support recent works that highlight the role of risk rationing for agricultural investment, suggesting a stronger focus of development policy on improving risk- sharing mechanisms for farmers.

The role of perceived risk in pricing strategy for industrial products: a point‐of‐view perspective

2006 ◽  
Vol 15 (6) ◽  
pp. 386-393 ◽  
Author(s):  
James M. Hunt ◽  
Howard Forman
Keyword(s):  
Attribution Theory ◽  
Perceived Risk ◽  
Academic Research ◽  
Point Of View ◽  
Individual Risk ◽  
Pricing Strategies ◽  
Content Type ◽  
Business Programs ◽  
Correct Point

PurposeThe purpose of this research paper is to examine the role corporate and individual risk (from the point of view of the pricing manager) plays in developing pricing strategies.Design/methodology/approachManagerial professionals in two graduate business programs were used to assess riskiness associated with pricing strategies. Grounded in attribution theory, t‐tests were used to compare the different types of risk associated with the various pricing strategies.FindingsThe findings suggest that pricing managers will view risk from different perspectives (i.e. corporate and individual) and that this “point of view” should have an impact on the pricing strategies selected.Research limitations/implicationsResearch limitations include the use of graduate students in lieu of actual pricing managers. However, this research is a first step in examining the different perspectives of risk that may be taken by managers.Practical implicationsPricing managers and organizations alike should be made aware of how a point‐of‐view perspective regarding risk can have a significant impact on selecting pricing strategies. The results of the study could provide guidance for corporations so that they can make sure pricing managers have the “correct” point of view regarding the riskiness of pricing strategies.Originality/valueThe research is the first to identify and examine the different risk perspectives. This provides value for academic research because it is the first in the area of risk regarding the different perspectives.

Overcoming counter-knowledge through telemedicine communication technologies

2017 ◽  
Vol 31 (7/8) ◽  
pp. 730-745 ◽  
Author(s):  
Jorge Cegarra-Sanchez ◽  
Juan-Gabriel Cegarra-Navarro ◽  
Anthony Wensley ◽  
Jose Diaz Manzano
Keyword(s):  
Learning Process ◽  
Design Methodology ◽  
Communication Technologies ◽  
Regional Hospital ◽  
Potential Contribution ◽  
Exploration And Exploitation ◽  
Negative Effects ◽  
Content Type

Purpose Knowledge acquired from sources of unverified information such as gossip, partial truths or lies, in this paper it is termed as “counter-knowledge.” The purpose of this paper is to explore this topic through an exploration of the links between a Hospital-in-the-Home Units (HHUs) learning process (LP), counter-knowledge, and the utilization of communication technologies. The following two questions are addressed: Does the reduction of counter-knowledge result in the utilization of communication technologies? Does the development of counter-knowledge hinder the LP? Design/methodology/approach This paper examines the relevance of communication technologies to the exploration and exploitation of knowledge for 252 patients of a (HHU) within a Spanish regional hospital. The data collected was analyzed using the PLS-Graph. Findings To HHU managers, this study offers a set of guidelines to assist in their gaining an understanding of the role of counter-knowledge in organizational LPs and the potential contribution of communication technologies. Our findings support the proposition that the negative effects of counter-knowledge can be mitigated by using communication technologies. Originality/value It is argued in this paper that counter-knowledge may play a variety of different roles in the implementation of LPs. Specifically, the assignment of communication technologies to homecare units has given them the means to filter counter-knowledge and prevent users from any possible problems caused by such counter-knowledge.

scholarly journals The antecedents of Muslim customers’ intention to invest in an Islamic bank’s term deposits: evidence from a Muslim majority country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Rahayu Hijrah Hati ◽  
Sigit Sulistiyo Wibowo ◽  
Anya Safira
Keyword(s):  
Perceived Risk ◽  
Online Survey ◽  
Perceived Value ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Product Knowledge ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank

Purpose The purpose of this study is to examine the impacts of product knowledge, perceived quality, perceived risk and perceived value on customers’ intention to invest in Islamic Banks. This study specifically examines an Islamic bank’s term deposits. Design/methodology/approach Structural equation modeling was used to analyze the data collected from 217 customers of an Islamic bank in Indonesia using an online survey. Findings This study highlights the central and dual roles of perceived risk as both the independent and the intervening variable that mediates the relationship between product knowledge and Muslim customer intention to invest in an Islamic bank’s term deposits. Research limitations/implications This study only investigates term deposits as one type of investment in Islamic banks. This study contributes to the literature by examining the role of product knowledge, perceived quality, perceived risk and perceived value on Muslim customer intention to invest in Islamic term deposits. Practical implications The results of this study highlight the requirement for Islamic banks to educate customers to improve the depositors’ product knowledge because Muslim customers’ risk and value perception and intention are strongly influenced by product knowledge. Originality/value The investigation of perceived risk is particularly relevant for Islamic financial products because of the inherent nature of risk sharing in Islamic finance. This study investigates the role of product knowledge in influencing the Muslim customers’ perception of risk, quality, value and their intention to invest in Islamic bank term deposits. Ideally, the profit loss sharing concept (PLS) should be applied; however, in this context, revenue sharing is applied because of Indonesia’s central bank regulation.

The role of emotions and social influences on consumer loyalty towards online travel communities

2016 ◽  
Vol 26 (5) ◽  
pp. 534-558 ◽  
Author(s):  
Carla Ruiz-Mafe ◽  
Jose Tronch ◽  
Silvia Sanz-Blas
Keyword(s):  
Social Presence ◽  
Perceived Risk ◽  
Positive Emotions ◽  
Social Influences ◽  
Negative Emotions ◽  
Subjective Norm ◽  
Content Type ◽  
Interpersonal Influences ◽  
Online Travel

Purpose The purpose of this paper is to analyse the role of emotions and social influences on loyalty formation towards online travel communities. Design/methodology/approach The individual (perceived risk) and social (subjective norm and social presence) antecedents of emotions as well as the impact of emotions on attitude and loyalty towards online travel communities are tested through structural equation modelling techniques. The sample consists of 385 active users of online travel communities in Spain. Findings Data analysis shows that perceived privacy and security risk elicit negative emotions such as stress, frustration and fear towards the online travel community. Normative influences (subjective norm) and feeling the presence of other community members (social presence) boost positive emotions towards the online travel community. Interpersonal influences have a positive effect on subjective norm but not external influences. Positive and negative emotions affect preferences towards the online travel community (attitudes) as proposed by social impact theory. Subjective norm and attitude have a direct influence on loyalty towards an online travel community, confirming previous research grounded on theory of reasoned action models. Originality/value Despite the crucial impact of consumers’ affective states on loyalty formation, research on social media is mainly focused on the technological nature of consumer information exchanges, neglecting other drivers of consumer behaviour beyond the technology employed. This paper develops a model that integrates the relationships between consumer emotions and their individual (perceived risk) and social (social presence and subjective norm) antecedents and outcome variables (attitude and loyalty). The role of social influences is analysed, assessing the conjoint impact of one-way communication (interpersonal influences and mass media) and Web 2.0 communications (social presence) on positive emotions and loyalty formation towards the online travel community.

Lifting the veil on HRIS adoption: the role of vendors and consultants in the diffusion of HR innovations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Grégory Jemine ◽  
Kim Guillaume
Keyword(s):  
Diffusion Processes ◽  
Active Role ◽  
Adoption Process ◽  
Supply Side ◽  
Holistic View ◽  
Content Type ◽  
Resource Information ◽  
Social Shaping ◽  
The Veil

PurposeThis paper aims to analyze the adoption process of human resource information systems (HRIS) from a supply-side perspective emphasizing the practices of HRIS vendors and consultants. It aims to counterbalance the existing literature on HRIS, which has overwhelmingly studied HRIS adoption from the customer organization's viewpoint, hence systematically downplaying the active role of vendors and consultants in adoption processes.Design/methodology/approachThe research has been conducted on the HRIS market of the Benelux (Belgium–The Netherlands–Luxemburg) from a constructionist and exploratory perspective. The structure and dynamics underlying the market are gradually unveiled through open interviews with HRIS vendors and consulting firms (n = 22).FindingsThe paper reveals how the social shaping of HR innovations takes place and identifies nine types of pressures exerted by HRIS vendors and consultants on customer organizations: assessing, advising, advertising, case-building, demonstrating, configuring, accompanying, sustaining and supporting. Taken together, these pressures demonstrate the systematic presence and active role of external actors throughout the adoption process of HRIS within firms.Research limitations/implicationsIt is suggested that further supply-side studies of innovation diffusion processes of HRIS should be conducted to complement the existing, demand-side literature. In this view, emphasis should be set on technology providers and their ongoing interactions with customer firms.Originality/valueThe analytical precedence given to supply-side actors allows to conceptualize HRIS adoption as the dynamic result of negotiations between three groups of actors (HRIS vendors, HRIS consultants and customer firms), hence resulting in a more comprehensive and holistic view of HRIS adoption processes.

When is transparent packaging beneficial?

2020 ◽  
Vol 48 (8) ◽  
pp. 781-801 ◽  
Author(s):  
Ouidade Sabri ◽  
Hai Van Doan ◽  
Faten Malek ◽  
Hager Bachouche
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
Product Category ◽  
Perceived Quality ◽  
Content Type ◽  
Mediating Role ◽  
High Level ◽  
Positive Effect ◽  
Moderating Role

PurposeThe purpose of this paper is to demonstrate that the positive effect of packaging transparency on purchase intention is moderated by product quality risk (PQR) associated with the product category.Design/methodology/approachTwo separate experiments were conducted. Study 1 was designed to test the mediating role of perceived quality to account for the positive effect of transparency on purchase intention. Two types of packaging (opaque vs transparent) for a product associated with a high level of PQR were examined. Study 2 extended the findings by introducing the moderating role of PQR. A 2 (type of packaging: opaque vs transparent)*2 (PQR: low vs high) between subjects design was used.FindingsThe moderating role of the product PQR level is established: transparent packaging improves the product perceived quality and brand purchase intention when the product is associated with a high PQR, whereas there is no such preference for transparent packaging when the product is associated with a low PQR.Practical implicationsThe results offer insights to better understand the potential gains from adopting transparent packaging. If a brand manager's main goals are to develop sales, costly investments in research and development of transparent packaging appear to be fruitful only for products associated with high PQR.Originality/valueThis paper contributes to packaging, cue utilisation and perceived risk literatures by evidencing the moderating role of PQR to explain the positive effect of transparency on purchase intention.

Culturally relevant constructionist design: exploring the role of community in identity development

2020 ◽  
Vol 121 (11/12) ◽  
pp. 847-867
Author(s):  
Sawaros Thanapornsangsuth ◽  
Nathan Holbert
Keyword(s):  
Identity Development ◽  
Low Income ◽  
Culturally Relevant ◽  
Performance Metrics ◽  
Community Members ◽  
Content Type ◽  
Maker Education ◽  
First Case ◽  
Cultural Connections

Purpose Many initiatives seek to engage children in maker education. However, there is a paucity of research examining children’s engagement in making in low-income formal school settings. Likewise, little work has been done to explore the transformative perspectives of both the children and the people around them. This study aims to explore a Culturally Relevant Constructionist Design framework that emphasizes making as a way of building connections to ones’ community. The participants’ shifting perspectives and receptivity in engaging in maker activities that involve making inventions for their community, inspired by the nation’s most beloved figure, King Bhumibol are evaluated. Design/methodology/approach This study investigates fourth-grade students, a teacher and community members around a public school in Thailand. Using qualitative research methods, data collection includes interviews, field notes observation, photos and videos of the sessions. This paper presents three case studies that represent the shifting perspectives and receptivity of teachers, community members and students through engaging in making experience. The first case illustrates the ways in which building for others supports the students’ formation of an identity of a creator. The two cases describe a teacher and a community member who developed new-found perceptions of students as valuable contributors to the community. Findings The findings highlight making inventions for the community as ways to connect teachers, community members and students together. The study also identifies key perceptions and experiences that empower students’ as contributors to their community. Through the process of making, the teacher and the community members also developed new-found positive perspectives of the students. Particularly, they viewed the students beyond traditional school performance metrics, and considered their other latent abilities. Practical implications This study discusses these findings in light of previous research on maker education especially in low-income communities. It also showcases the role of making for the betterment of the community as a tool for engendering change in schools and empowering students to design and make personally and socially meaningful projects. The study also highlights how design-based research carried out in the international context, particularly in Thai locality and classrooms. Originality/value This study argues against the deficit lens that assumes a low sense of expectation for what students from lower-income schools can do. Students hold unique worldviews that lead them to create innovations relevant to their local and cultural needs. The study addresses this gap by designing a framework that emphasizes making relevant cultural connections to students’ communities. The study also showcases maker-centered experiences that enable students to express their ideas, to cultivate relationships, to help others and to see themselves in new ways. The perspectives of the participants hold implications beyond the predominant focus of maker education initiatives.

The role of personalization on continuance intention in food service mobile apps

2019 ◽  
Vol 31 (2) ◽  
pp. 734-752 ◽  
Author(s):  
Jee-Won Kang ◽  
Young Namkung
Keyword(s):  
Perceived Risk ◽  
Mobile Apps ◽  
Perceived Value ◽  
Food Service ◽  
Ease Of Use ◽  
Perceived Ease Of Use ◽  
Content Type ◽  
Perceived Benefit ◽  
Privacy Calculus

PurposeThis paper aims to examine consumers’ behaviors toward personalized services offered by branded mobile apps in the food service industry by applying privacy calculus theory and technology acceptance model (TAM). Further, this research identified the moderating role of technology anxiety.Design/methodology/approachAn online survey was carried out to investigate the role of personalization on continuance intention toward branded mobile apps. In total, 348 valid responses were analyzed to test hypotheses using structural equation modeling.FindingsThe results show that personalization had significantly affected perceived benefit, perceived risk and perceived ease of use. Perceived benefit had positive effects on perceived value of disclosure, but perceived risk did not affect perceived value of disclosure. Perceived value of disclosure and perceived ease of use were linked to trust. Trust, in turn, positively affected intentions to use mobile apps. With regard to the moderating effect of technology anxiety, it had a significant moderating impact on the relationship between personalization and perceived risk. However, it did not moderate the relationship between personalization and perceived benefit.Practical implicationsThe findings of this study could provide useful theoretical and practical implications related to the successful implementation of mobile marketing.Originality/valueThis study proposes the integrated model of privacy calculus theory and the TAM for deeper understanding of the customers’ responses toward personalization of branded mobile apps.

Brand loyalty among low-income consumers?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murilo Carrazedo Costa Filho ◽  
Roberto P.Q. Falcao ◽  
Paulo Cesar de Mendonça Motta
Keyword(s):  
Low Income ◽  
Brand Loyalty ◽  
Perceived Risk ◽  
Content Type ◽  
Five Factors ◽  
Wide Range ◽  
Holistic Understanding ◽  
Brand Consideration ◽  
Low Income Consumers ◽  
Depth Interviews

Purpose Low-income consumers (LICs) have gained more attention from marketers after Prahalad and Hart (2004) called attention to untapped opportunities among the world’s poorest. Once neglected and seen as price-driven, more recent research has depicted LICs as brand-conscious consumers who are willing to pay a premium for quality. However, because LICs must balance their tight budgets with aspirations for branded items, this perspective may be too optimistic. To address this issue, the purpose of this paper is to investigate brand consideration and loyalty among LICs across a wide range of products. Design/methodology/approach The authors used a qualitative-inductive approach to assess LICs’ brand considerations across ten fast-moving consumer goods. In-depth interviews with 20 Brazilian LICs were conducted. Findings The authors found that brand loyalty among LICs is both context- and category-dependent. Patterns of loyalty are influenced by five factors: perceived differentiation, perceived risk, contextual usage, proportion of the category expenditure to household income and hedonic vs functional consumption. It seems that the interplay of these factors ultimately shapes differently the attitudes and repeated patronage of brands within each category among LICs. Research limitations/implications Generalizability of findings is limited owing to the qualitative method used. Practical implications The authors provide practical insights to managers concerning key attributes that influence brand consideration and loyalty among LICs. Originality/value This paper adds to the yet limited knowledge on LICs and provides a deeper and more holistic understanding of the relation of LICs with brands.

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