scholarly journals The digital transformation of microfinance institutions: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gregor Dorfleitner ◽  
Davide Forcella ◽  
Quynh Anh Nguyen
Keyword(s):  
Home Country ◽  
Social Performance ◽  
Digital Transformation ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Content Type ◽  
Future Studies ◽  
The Social ◽  
The Relationship ◽  
Practical Implications

PurposeThis study seeks to identify the factors that are associated with the digital transformation of microfinance institutions (MFIs).Design/methodology/approachThe study employs probit models to investigate the likelihood of integrating digital solutions by MFIs and Heckman models for robustness checks.FindingsThe findings reveal that the adoption of these tools is consistent with the social performance of MFIs. Furthermore, the profitability of the institutions and their home country development are associated with a larger application of digital support solutions.Research limitations/implicationsSince the survey data collected is not longitudinal and does not cover many MFIs, it may encounter the absence of comprehensive results. Moreover, the study is limited to supply-side incentive factors, thus lacks of investigations under supply-demand interaction schemes. Therefore, future studies are encouraged to fill up these knowledge gaps.Practical implicationsThe results imply that the adoption of digital solutions does not necessarily harm the social performance of MFIs. In addition, the findings may imply that financial sustainability can serve as being a preliminary condition but must not lead to the mission drift of MFIs. Findings of the study have implications for policymakers, donors and investors who wish to accelerate the digital transformation within the microfinance industry and to significantly boost financial inclusion. A focus on more social-oriented MFIs can be an appropriate solution. Furthermore, the pathway to digital financial inclusion through microfinance can be made more efficient if improved and supportive facilities as well as systems for digital technology are available.Originality/valueThis paper is the first one which highlights the relationship between the MFI's social performance and the application of digital solutions by MFIs. Furthermore, we discuss this link while considering cost aspects.

scholarly journals Social and financial performance of MFIs: complementary or compromise?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Navin ◽  
Pankaj Sinha
Keyword(s):  
Financial Performance ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Current Time ◽  
Content Type ◽  
Dynamic Framework ◽  
The Social ◽  
Loan Size ◽  
The Relationship ◽  
Practical Implications

Purpose With the ongoing transformation of the microfinance sector, questions have been raised on the ability of microfinance institutions (MFIs) to perform financially well without compromising with their social objectives. The current study attempts to analyse the social and financial performance of Indian MFIs with an objective to find the kind of relationship between these two objectives. Design/methodology/approach The dynamic framework of simultaneous equations model is used to find the nature of the relationship which exists between social and financial performance of Indian MFIs. Findings The study finds that depth of outreach enables MFIs to achieve financial sustainability. On the other hand, financially strong MFI lend more as reflected by an increase in their average loan size. Research limitations/implications Many MFIs still receive subsidies to support their operations. Ideally, adjustments should be made to remove the effect of such subsidies on their cost. However, due to non-availability of data, the study fails to make any adjustment for the subsidies. Practical implications The presence of a complementary relationship between social and financial performance in the Indian microfinance sector is quite encouraging for the policymakers during the current time when the sector is becoming less dependent on subsidies. However, the recent upsurge in the average loan size requires attention. Social implications The findings suggest that MFIs can achieve financial sustainability while targeting poor clients. This indicates that MFIs can perform socially good along with their financial performance. Originality/value Such study is vital when the Indian microfinance sector is moving away from subsidies to become self-reliant and commercialised. Few studies have focused on this aspect of Indian microfinance sector.

Financial inclusion and the performance of microfinance institutions: Does social performance affect the efficiency of microfinance institutions?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nisha Bharti ◽  
Sushant Malik
Keyword(s):  
Rural Areas ◽  
Social Performance ◽  
Financial Inclusion ◽  
Data Envelopment ◽  
Microfinance Institutions ◽  
Content Type ◽  
Social Mission ◽  
Vision Statements ◽  
The Social ◽  
The Impact

Purpose The purpose of this study is to evaluate whether focus on social output affects the efficiency of MFIs. Inclusive growth is the key developmental aim for many developing countries, including India. The role of microfinance institutions (MFIs) in promoting financial inclusion is widely applauded. However, to achieve financial sustainability, MFIs have become highly commercialised and are seen to have drifted away from their social mission. Various studies have shown the efficiency of MFIs on financial parameters. MFIs being a social enterprise, it is important to include social output among the efficiency parameters. Design/methodology/approach This study attempts to compare the efficiency of MFIs with and without social performances across the various size of MFIs based on their asset, i.e. large, medium and small. This study uses Data Envelopment Analysis (DEA) for assessing an MFI’s efficiency. For calculating the social output score, the Gutman Scale is used. Efficiency is calculated with and without social output, and the resulting scores are compared to assess the impact of social performance on the efficiency of MFIs. Findings The results of this study allow us to conclude that with the inclusion of social output, the efficiency of MFIs improves across various categories. In terms of social performances, it is concluded that MFIs are targeting women and mostly working in rural areas but have neglected issues like health and education. Originality/value The findings of this study will help MFIs in formulating their mission and vision statements and in achieving the objective of financial inclusion without experiencing mission drift.

The optimism-pessimism ratio as predictor of employee creativity: the promise of duality

2018 ◽  
Vol 21 (3) ◽  
pp. 423-442 ◽  
Author(s):  
Arménio Rego ◽  
Miguel Pina e Cunha ◽  
Dálcio Reis Júnior ◽  
Cátia Anastácio ◽  
Moriel Savagnago
Keyword(s):  
Cross Sectional ◽  
Content Type ◽  
Future Studies ◽  
Positive Effects ◽  
The Status ◽  
Single Moment ◽  
Quasi Experimental ◽  
Creativity And Innovation ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to study if the employees’ optimism-pessimism ratio predicts their creativity. Design/methodology/approach In total, 134 employees reported their optimism and pessimism, and the respective supervisors described the employees’ creativity. Findings The relationship between the optimism-pessimism ratio and creativity is curvilinear (inverted U-shaped); beyond a certain level of the optimism-pessimism ratio, the positive relationship between the ratio and creativity weakens, suggesting that the possible positive effects of (high) optimism may be weakened by a very low level of pessimism. Research limitations/implications Being cross-sectional, the study examines neither the causal links between the optimism-pessimism ratio and creativity nor other plausible causal links. The study was carried out at a single moment and did not capture the dynamics that occur over the course of time involving changes in optimism/pessimism and creativity. Future studies may adopt longitudinal or quasi-experimental designs. Practical implications Managers and organizations must consider that, even though positivity promotes creativity, some level of negativity may help positivity to produce creativity. Originality/value This study suggests that scholars who want to study the antecedents of creativity (and innovation) must be cautious in focusing only on the positive or the negative sides of individuals’ characteristics, and rather they must explore the interplay between both poles. Individuals may experience both positive and negative states/traits (Smith et al., 2016), and this both/and approach may impel them to think divergently, to challenge the status quo and to propose “out the box” and useful ideas.

Antecedents of work readjustment of professional returnees: evidence from Vietnam

2019 ◽  
Vol 12 (1) ◽  
pp. 58-72
Author(s):  
Hung Trong Hoang ◽  
Nga Thi Thuy Ho
Keyword(s):  
Home Country ◽  
Empirical Studies ◽  
Subjective Norm ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
Developed Country ◽  
Content Type ◽  
The Relationship ◽  
Overseas Work ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the factors influencing work readjustment of Vietnamese returnees who used to study and/or work in a developed country and are currently working in different positions in their home country. Design/methodology/approach Data for this study were collected through a survey of 433 returnees using both paper-based and online surveys. Multiple regression was used to test the relationships in the model. Findings The findings show that while the length of time spent overseas, work expectations and subjective norm significantly affect work readjustment, the influences of age, gender and length of time since return on work readjustment are not supported. Practical implications The findings provide useful insights for home country government and managers of returnees developing repatriation programs that help returnees deal with the issue of poor work readjustment. Originality/value Empirical studies on cross-cultural re-entry adjustment of both self-initiated repatriates and international students are scarcely investigated. Most prior studies focused on individual factors (such as gender, age, duration in overseas and since return), research on the effect of work expectation on work readjustment is still scant. Most prior studies focused on examining the relationship between work expectation and work readjustment of company repatriates, however, this relationship in the context of returnees, especially in the Asia-Pacific region, has not been investigated. Furthermore, this study is the first to examine the influence of subjective norm on work readjustment of returnees.

Crisis communication in key account relationships

2014 ◽  
Vol 19 (3) ◽  
pp. 234-246 ◽  
Author(s):  
Satu Nätti ◽  
Suvi Rahkolin ◽  
Saila Saraniemi
Keyword(s):  
Crisis Communication ◽  
Communication Strategy ◽  
Content Type ◽  
Future Studies ◽  
Account Management ◽  
Key Account ◽  
The Relationship ◽  
Business To Business ◽  
Practical Implications

Purpose – A deliberate and planned crisis communication strategy is an important part of key account management. The purpose of this paper is to draw links between key account managers (KAM) and crisis communication and explore the elements critical to crisis communication in key account relationships. Design/methodology/approach – The approach is qualitative. Data were gathered from people experienced in crisis communication and responsible for strategic accounts. The paper analysed managers’ stories of crisis processes and related communication in relationships. Findings – Successful crisis communication requires an open and active crisis communicator, one willing to solve problems, and also the company being a partner worth trusting and the retention of the relationship being worthwhile for the customer. Research limitations/implications – The present study focuses on the managerial view, and therefore a dyadic approach is suggested for future studies. Practical implications – The role of the KAM as a crisis communicator and primary identifier of the crisis is emphasized. Originality/value – Existing crisis communication discussions have been very media focused. This study focuses on the key account relationship and the related crisis communication. In addition, although earlier studies examine the influences of crises on business relationships (e.g. Salo et al., 2009; Thiessen and Ingenhoff, 2010; Tähtinen and Vaaland, 2006), research on crisis communication in business-to-business key account relationships is still scarce. The results will help to understand the characteristics of crisis communication in key account relationships and enhance communication with strategic accounts.

scholarly journals Towards crisis protection(ism)? COVID-19 and selective de-globalization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Layla Branicki ◽  
Bridgette Sullivan-Taylor ◽  
Stephen Brammer
Keyword(s):  
International Relations ◽  
Multinational Enterprises ◽  
Home Country ◽  
Extreme Event ◽  
Content Type ◽  
Market Risks ◽  
The University ◽  
Industry Sectors ◽  
The Relationship ◽  
Practical Implications

Purpose Drawing on Wendt’s (1995, 1999) thin constructivist approach to international relations this paper aims to critically examine how the measures taken by the Australian Government to protect the country from coronavirus (COVID-19) have prompted politicians and opinion-makers to mobilize globalizing and de-globalizing discourses towards divergent conceptualizations of national resilience. Design/methodology/approach The paper examines 172 Australian political and media articles, which focus on both COVID-19 and globalization/de-globalization published between February and June 2020. The data were imported to NVivo to enable in-depth thematic analysis. Findings The paper develops the concept of crisis protectionism to explain how COVID-19 has been mobilized in discourses aimed at accelerating selective de-globalization in Australia. Selective de-globalization is inductively theorized as involving material structures (i.e. border closures), ideational structures (i.e. national identity) and intersubjectivities (i.e. pre-existing inter-country antagonisms). Research limitations/implications The paper relies upon publicly available data about Australian discourses that relate to a unique globally disrupting extreme event. Practical implications Crisis protectionism and selective de-globalization are important to multinational enterprises (MNE) that operate in essential industry sectors (e.g. medical supply firms), rely upon open borders (e.g. the university sector) and for MNEs entering/operating in a host country experiencing antagonistic relationships with their home country. Originality/value The paper extends Witt’s (2019) political theorization of de-globalization towards a socialized theory of de-globalization. By rejecting liberal and realist explanations of the relationship between COVID-19 and de-globalization, this study highlights the importance and endogeneity of non-market risks and non-economic logic to international business and MNE strategy.

Effects of comparability of promotions on inaction inertia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hsin-Hsien Liu ◽  
Hsuan-Yi Chou
Keyword(s):  
Design Methodology ◽  
Content Type ◽  
Factors Affecting ◽  
Future Studies ◽  
Incentive Compatible ◽  
Internal Mechanism ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications ◽  
A Current

PurposeBased on mental accounting theory, this study explored whether the comparability of missed and subsequent promotional formats/frames affects inaction inertia.Design/methodology/approachFour experiments with imaginary and incentive-compatible designs were conducted to test the hypotheses.FindingsConsumers are more likely to express inaction inertia after having missed a comparable promotion than after having missed a noncomparable promotion. Devaluation of the promoted target mediates the impact of comparability on inaction inertia, while referent others' actions do not moderate the comparability effect. Finally, when consumers accept a subsequent inferior promotion, they prefer using a different payment format because it reduces comparability of the two promotions.Practical implicationsCompanies should use different promotional formats/frames to reduce comparability and inaction inertia when a new promotion is relatively inferior to a recent previous one. Companies should offer different payment options to help customers actively avoid comparing a current promotion with a missed promotion.Originality/valueThis study provides a more comprehensive conceptual structure for understanding the relationship between psychological comparability and inaction inertia. It provides insights into what actions companies should take to reduce inaction inertia. Furthermore, this study empirically tests the influence of multiple comparison referents, which provides a reference point for future studies on the factors affecting inaction inertia. A new method to examine whether consumers actively avoid comparisons is used, which clarifies the internal mechanism of inaction inertia.

The impact of entertainment and social interaction with salespeople on mall shopper satisfaction

2019 ◽  
Vol 47 (2) ◽  
pp. 94-110 ◽  
Author(s):  
Maher Georges Elmashhara ◽  
Ana Maria Soares
Keyword(s):  
Social Interaction ◽  
Emotional States ◽  
Content Type ◽  
Mediating Role ◽  
Proposed Model ◽  
The Social ◽  
Shopping Experience ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to understand the role played by emotional states in the relationship between entertainment and social interaction with salespeople and shopper satisfaction. Design/methodology/approach The proposed model was tested using a survey-based study, with a sample size of 318 mall shoppers. Findings The results indicate that pleasure and dominance are mediators in the relationship between entertainment and social interaction with salespeople and mall shopper satisfaction. Moreover, regarding the direct relations, entertainment directly influences satisfaction, while social interaction does not. Practical implications The results have practical implications for mall managers and mall developers. Specifically, entertainment can be used to attract shoppers and to enhance their satisfaction with the overall shopping experience. Practical suggestions to this end are offered. Originality/value This study’s contribution is twofold: first, this study adds to research by addressing the gap in research regarding shopper emotional states. Specifically, it addresses the mediating role played by emotional states of shoppers on the impact of entertainment and social interaction in satisfaction. Second, the study concentrates on the role of salespeople by focusing on the social aspects of the interaction.

Women’s presence in top management and the performance of microfinance institutions in West Africa

2019 ◽  
Vol 47 (2) ◽  
pp. 207-222 ◽  
Author(s):  
Hamadou Boubacar
Keyword(s):  
Peer Review ◽  
Social Performance ◽  
West African ◽  
Senior Management ◽  
Social Orientation ◽  
Top Management ◽  
Microfinance Institutions ◽  
Content Type ◽  
The Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the relationship between the presence of women in senior management and the performance of microfinance organizations in the West African Economic and Monetary Union (WAEMU). Design/methodology/approach Using a data set of 266 microfinance institutions (MFIs) for the period 2013–2017, the study assesses the impact of women’s representation in senior management and on the boards of West African MFIs on these institutions’ financial and social performance. Findings The results indicate that board size and diversity positively and significantly affect the social performance of MFIs, particularly in relation to women’s participation in decision-making regarding expanding services to poor people. In essence, greater gender diversity at the board and management levels promotes the social orientation of MFIs. Research limitations/implications The low representation of women on boards and as managers makes it difficult to more accurately determine the true impact of women in senior positions on MFIs performance. Practical implications The author recommends minimum quotas for women in the top management of MFIs. This would help these institutions incorporate key skills and actively involve all members. Also, regulation places constraints on the ability of West African MFIs to mobilize deposits and this negatively impacts their financial performance. Originality/value This investigation highlights the importance of including women in the top management of MFIs to improve these institutions’ performance. It also underscores an interesting problem and answers questions raised in the existing literature by either rejecting or confirming the findings. As players in the microfinance sector recognize that board diversity is important for the success of any microfinance institution, this paper helps shed light on the situation of these organizations in the WAEMU. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0365

Gossip: a channel for the development of personal reputation

2017 ◽  
Vol 25 (3) ◽  
pp. 516-535 ◽  
Author(s):  
Robert Zinko ◽  
Charles Tuchtan ◽  
James Hunt ◽  
James Meurs ◽  
Christopher Furner ◽  
...  
Keyword(s):  
Social Norms ◽  
Empirical Evidence ◽  
Design Methodology ◽  
Conceptual Analysis ◽  
Review Of The Literature ◽  
Content Type ◽  
Integrate Theory ◽  
The Social ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to empirically test the extent to which gossip plays a role in individual reputation development in the context of contemporary organizations. This study answers the continuous calls to integrate theory across fields by exploring the theoretical links between these two constructs. Design/methodology/approach This study provides a conceptual analysis and general review of the literature on gossip and reputation. The relationship between these two constructs is investigated through a two-study package (lab and field) yielding convergent results. Findings The findings of this study are that gossip contributes to organizational identity in that it reinforces the social norms of groups and that gossip serves as an important enabler of reputational development. This study provides empirical evidence that gossip serves a more significant role in the development of personal reputation than more formal methods of communication. Practical implications As organizations and individuals attempt to develop and capitalize on the effects of individuals’ reputations, this study provides practical insights into the knowledge that needs to be built regarding the method by which this development can occur. This study points to the practical value of gossip in the creation of personal reputation. Originality/value The theoretical framework in this study highlights the centrality of gossip as a primary enabler of reputation development in contemporary organizations. Reputation theory is advanced by studying a segment of the construct that has, until now, been excluded from consideration in this field.

Sign in / Sign up

Export Citation Format

Share Document