Is Microcredit a Reverse Innovation?

2020 ◽  
pp. 231971452096292
Author(s):  
Arvind Ashta ◽  
Surender Mor
Keyword(s):  
Social Innovation ◽  
Essential Feature ◽  
Developed Countries ◽  
Corporate Image ◽  
Reverse Innovation ◽  
Microfinance Institutions ◽  
Group Lending ◽  
Developed Country ◽  
The Poor ◽  
Broad Concept

The concept of reverse innovation can be defined on a spectrum ranging from narrow to broad. We look at the broad concept, which indicates that an innovation travels successfully from a developing country to a developed country. A few authors have indicated that microcredit is a reverse innovation. However, credit by itself is not an innovation, nor is lending to the poor. The essential feature of modern-day microcredit in developing countries is that it acts as a social innovation, using group lending, being primarily directed towards women and creating financially stable institutions. We do not find evidence that any of these features have been adopted by a developed country’s microfinance institutions (MFIs) in a sustainable manner. We consider that only the use of the words ‘microfinance’ and 'microcredit' have been adopted by developed countries to further the corporate image, and researchers should be aware that ‘microfinance’ holds different connotations in different regions.

Resurgence of an Ancient Idea? A Study on the History of Microfinance

2020 ◽  
Vol 9 (2) ◽  
pp. 78-84 ◽  
Author(s):  
Mohammad Zainuddin ◽  
Ida Md Yasin
Keyword(s):  
Developed Countries ◽  
Early History ◽  
Historical Research ◽  
Microfinance Institutions ◽  
Simple Idea ◽  
The Poor ◽  
History Of Evolution ◽  
Global Movement ◽  
History Of ◽  
Developing And Developed Countries

Microfinance revolution, as it was frequently called, did not happen overnight. Microfinance has a long history of evolution, from a simple idea to a global movement, through which it came into the present shape. But much of its history is yet to be written systematically. In fact, there is no historical research so far from the perspective of microfinance. Little is thus known about the early history of some of the oldest forms of lending to the poor. The current study offers a historical look at microfinance and aims at documenting the evolution of modern microfinance institutions. The object of the research is to recognize the historical depth of microfinance and give a picture of how this idea emerged and developed overtime. The study reveals that moneylending to the poor was always in existence in various forms in different periods of time in both developing and developed countries. It has a long history, particularly in Asia but also in Africa and Europe.

Reverse Innovation and the Bottom of the Pyramid Proposition

2014 ◽  
pp. 32-52
Author(s):  
Nebojša Radojević ◽  
Jahan Ara Peerally
Keyword(s):  
Multinational Enterprises ◽  
Large Scale ◽  
Social Impact ◽  
Developed Countries ◽  
Social Needs ◽  
Future Research ◽  
Bottom Of The Pyramid ◽  
Reverse Innovation ◽  
Developed Country ◽  
The Social

Analysing cases from India, this chapter reveals flaws in recent claims that reverse innovation can resolve some of the world's most urgent social problems. Reverse innovation implies the diffusion of innovations from developing to developed countries, and is therefore, per se, irrelevant for the social needs of the former. If understood more broadly, as a strategic approach, reverse innovation may reduce some dimensions of inequality. However, as an instrument of poverty reduction, reverse innovation equals the known and compelling but doubtful proposition that developed country multinational enterprises may induce large-scale prosperity simply by doing business with the world's poorest. In this chapter, the authors assess the social impact of reverse innovations and contrast previous wholesale claims on those impacts with an in-depth analysis. The authors’ analysis reveals that these social impacts are not as significant as currently believed. The chapter concludes by suggesting future research avenues on the bottom of the pyramid, which will be of key relevance to academics and managers alike.

Reverse Innovation and the Bottom of the Pyramid Proposition

2016 ◽  
pp. 1143-1164
Author(s):  
Nebojša Radojević ◽  
Jahan Ara Peerally
Keyword(s):  
Multinational Enterprises ◽  
Large Scale ◽  
Social Impact ◽  
Developed Countries ◽  
Social Needs ◽  
Future Research ◽  
Bottom Of The Pyramid ◽  
Reverse Innovation ◽  
Developed Country ◽  
The Social

Analysing cases from India, this chapter reveals flaws in recent claims that reverse innovation can resolve some of the world's most urgent social problems. Reverse innovation implies the diffusion of innovations from developing to developed countries, and is therefore, per se, irrelevant for the social needs of the former. If understood more broadly, as a strategic approach, reverse innovation may reduce some dimensions of inequality. However, as an instrument of poverty reduction, reverse innovation equals the known and compelling but doubtful proposition that developed country multinational enterprises may induce large-scale prosperity simply by doing business with the world's poorest. In this chapter, the authors assess the social impact of reverse innovations and contrast previous wholesale claims on those impacts with an in-depth analysis. The authors' analysis reveals that these social impacts are not as significant as currently believed. The chapter concludes by suggesting future research avenues on the bottom of the pyramid, which will be of key relevance to academics and managers alike.

scholarly journals Globalization Impact on Multinational Enterprises

World ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 216-230
Author(s):  
Justine Kyove ◽  
Katerina Streltsova ◽  
Ufuoma Odibo ◽  
Giuseppe T. Cirella
Keyword(s):  
Developing Country ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Global Market ◽  
Data Availability ◽  
Negative Effects ◽  
Developed Country ◽  
Excellent Starting Point ◽  
Starting Point ◽  
The Impact

The impact of globalization on multinational enterprises was examined from the years 1980 to 2020. A scoping literature review was conducted for a total of 141 articles. Qualitative, quantitative, and mixed typologies were categorized and conclusions were drawn regarding the influence and performance (i.e., positive or negative effects) of globalization. Developed countries show more saturated markets than developing countries that favor developing country multinational enterprises to rely heavily on foreign sales for revenue growth. Developed country multinationals are likely to use more advanced factors of production to create revenue, whereas developing country multinationals are more likely to use less advanced forms. A number of common trends and issues showed corporate social responsibility, emerging markets, political issues, and economic matters as key to global market production. Recommendations signal a strong need for more research that addresses contributive effects in the different economies, starting with the emerging to the developed. Limitations of data availability and inconsistency posed a challenge for this review, yet the use of operationalization, techniques, and analyses from the business literature enabled this study to be an excellent starting point for additional work in the field.

Comparing entrepreneurial communities

2015 ◽  
Vol 9 (3) ◽  
pp. 206-220 ◽  
Author(s):  
Justin Paul ◽  
Archana Shrivastava
Keyword(s):  
Information Technology ◽  
Developed Countries ◽  
Personality Factors ◽  
Asian Countries ◽  
Cross Sectional ◽  
Developed Country ◽  
Content Type ◽  
Mba Students ◽  
Emerging Country ◽  
Survey Responses

Purpose – The purpose of this paper is to compare entrepreneurial attributes of MBA students, the next generation business people, from two important Asian countries, India from South Asia and Japan from East Asia (India, being an emerging country and Japan, a developed country). Design/methodology/approach – Survey responses from MBA students in India and Japan were measured on an entrepreneurial personality index. Bateman and Crant’s scale consisting of 17 traits is used to identify if entrepreneurial traits are a learned cultural behaviour or intrinsic personality factors. Findings – Although the findings indicate that India has benefitted from entrepreneurship in the information technology and information technology-enabled service ventures during the past two decades, the country still has a long way to go when compared to developed countries like Japan, where entrepreneurship is widespread. Research limitations/implications – The results are based on a single survey, using cross-sectional data. Originality/value – The level of entrepreneurship differs considerably across countries and periods. The authors put forward a theoretical framework to denote the linkage between entrepreneurial attitude, pro-active personality and culture, besides highlighting the three pillars of entrepreneurship.

scholarly journals INAPPROPRIATE TECHNOLOGY What Is in It for the Rich?

2007 ◽  
Vol 11 (4) ◽  
pp. 487-518 ◽  
Author(s):  
ANA FERNANDES ◽  
KRISHNA B. KUMAR
Keyword(s):  
Green Revolution ◽  
Developed Countries ◽  
Welfare Effects ◽  
Luxury Good ◽  
Rich Region ◽  
The Poor ◽  
Poor Region ◽  
Inferior Good ◽  
The Rich ◽  
Local Use

In this paper, we investigate incentives, other than altruism, that developed countries have for improving developing country technologies. We propose a simple model of international trade between two regions, in which individuals have preferences over an inferior good and a luxury good. The poor region has a comparative advantage in the production of the inferior good. Even when costly adaptation of the technology to the poor region's characteristics is required—making the technology inappropriate for local use—there are parameter configurations for which the rich region has an incentive to incur this cost. It benefits from a terms-of-trade improvement and from greater specialization in the luxury good. Indeed, there are cases where the rich region would prefer to improve the poor region's technology for producing the inferior good rather than its own. We apply our model to the Green Revolution and provide a quantitative assessment of its welfare effects.

Lethal Toxic Encephalopathy Due to Childhood Shigellosis in a Developed Country

PEDIATRICS ◽  
1992 ◽  
Vol 89 (6) ◽  
pp. 1189-1193
Author(s):  
Avner Goren ◽  
Serem Freier ◽  
Justen H. Passwell
Keyword(s):  
Cause Of Death ◽  
Clinical Signs ◽  
Antibiotic Sensitivity ◽  
Developed Countries ◽  
Toxic Encephalopathy ◽  
Control Group ◽  
Healthy Children ◽  
Developed Country ◽  
Patients Âgés ◽  
Shigella Species

Shigellosis results in considerable morbidity in endemic areas, but mortality is rare in developed countries. All pediatric deaths (n = 15) in Israel following shigellosis in the past 10 years were reviewed. The patients' ages ranged from 5 months to 11 years; there were eight boys and seven girls. Three were institutionalized mentally retarded patients, 11 were healthy children. Twelve had definite clinical signs of brain death within 48 hours of onset of disease. Cause of death in all patients was consistent with toxic encephalopathy. No other systemic complication was implicated as the cause of death except for one case consistent with a "Reye-like" syndrome. Shigella species were as follows: 8 flexneri, 4 sonnei, 1 dysenteriae, and 2 were not identified. Case-control study of these patients vs surviving, hospitalized patients with shigellosis showed similar severity of fever, diarrhea, vomiting, and dehydration and similar incidence of convulsions. Headache was a prominent feature of patients who died; 5 of 7 verbal patients complained of this symptom as opposed to 2 of 20 in the control group (P < .01). There were no significant differences in the hematological and biochemical profile (except for an increased incidence of hyponatremia in the study group), pattern of shigella species, or antibiotic sensitivity. These findings indicate that mortality from shigellosis in a developed country is due primarily to the toxic encephalopathy syndrome.

Start-up motives and challenges facing female entrepreneurs in Tanzania

2019 ◽  
Vol 11 (2) ◽  
pp. 102-119 ◽  
Author(s):  
Nsubili Isaga
Keyword(s):  
Urban Areas ◽  
Developed Countries ◽  
Access To Finance ◽  
Female Entrepreneurs ◽  
Public And Private ◽  
Developed Country ◽  
Content Type ◽  
The Government ◽  
Survey Responses ◽  
Practical Implications

Purpose Research on women-owned business is more extensive in developed countries than in developing countries and such one cannot compare the results. This paper aims to examine the motives of women in Tanzania (a less developed country) to start their own businesses and the challenges they faced in running their businesses. Design/methodology/approach Based on 400 response to a semi-structured questionnaire and in-depth interview with 20 female entrepreneurs. Subsequently, descriptive and factors analysis were performed to analyze the data Findings Based on survey responses, the primary reason for starting a business was to create employment for the woman herself. Other motives include supplementing income and enabling women to be able to do the kind of work they wanted to do. According to the factor analysis, female entrepreneurs are driven more by push factors than pull factors. The most serious problems faced by female entrepreneurs are lack of access to finance, gender-related problems and social and cultural commitments. Research limitations/implications The sample was selected from urban areas of only three regions, out of 26 regions in Tanzania. Researchers may extend the study to other regions; also, the non-probability sampling method used in this study essentially means that there is a limitation to the extent to which the research findings can be generalized to the rest of the population of female entrepreneurs in Tanzania. Practical implications Policy makers, financial institutions and all organization that have a stake on development on female entrepreneurs in Tanzania should design policies and programs that encourage and promote the creation and growth of businesses. Collective efforts from the government, public and private institutions and NGOs are needed to eliminate the challenges, especially gender-related problems. Practical implications By studying female owner-managers’ motivations and constraints, the author suggests that to a greater extent, gender-related problems, social and cultural commitments and access to finance and networks are the constraints faced by female entrepreneurs. Originality/value The research on female entrepreneurs in the context of Tanzania is scarce, this study responds to a need of better understanding women motivations and constraints. By studying these factors, this study shows that startup motives and constraints faced by female entrepreneurs are unique to different contexts.

What drives credit risk of microfinance institutions? International evidence

2017 ◽  
Vol 13 (5) ◽  
pp. 541-559 ◽  
Author(s):  
Naima Lassoued
Keyword(s):  
Credit Risk ◽  
Institutional Environment ◽  
Microfinance Institutions ◽  
Group Lending ◽  
Content Type ◽  
Random Effects Models ◽  
Credit Quality ◽  
Country Level ◽  
Enforcement Cost ◽  
Practical Implications

Purpose The purpose of this paper is to shed light on the factors that affect microfinance institutions’ (MFI) credit risk. These factors include MFIs’ characteristics and country-level indicators. Design/methodology/approach This empirical study uses an unbalanced panel data of 638 MFIs from 87 countries observed over a period ranging from 2005 to 2015. Random-effects models are used to estimate the models. Findings The results reveal that group-lending methodology, percent of loan granted to women and diversification activities reduce credit risk; credit quality is enhanced by the relevance of the information published by public or private bureaus and law enforcement cost increases credit risk. Finally, credit risk tends to be limited in a good institutional environment. Practical implications Several implications can be drawn in light of these findings. For MFIs’ managers, using group lending or granting more credit to women and diversifying their activities enhance their credit quality. Furthermore, authorities need to strength debt repayment institutions and reinforce institutional environment to help MFIs to limit their credit risk. Originality/value Previous studies focus on specific MFIs’ practices that enhance repayment rate or on country-level indicators. One of the contributions of this paper is the use of both types of indicators.

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