Dynamic capabilities and enterprise growth: the mediating effect of networking

PurposeEnterprise growth drives competitiveness, innovations, employment creation, income generation and social inclusion in societies. The purpose of this paper is to examine the mediating effect of networking on the relationship between dynamic capabilities and enterprise growth of financial cooperatives.Design/methodology/approachThis is a cross-sectional survey and quantitative study of 269 financial cooperatives based on structural equation modelling and bootstrapping techniques analysis.FindingsThe results reveal that dynamic capabilities are vital in promoting the growth of financial cooperatives. In addition, networking partially enhances the contribution of dynamic capabilities to the growth of financial cooperatives. Therefore, dynamic capabilities and networking play a key role in promoting the growth of financial cooperative enterprises.Research limitations/implicationsThis was a cross-sectional survey. It did not trace the changes in behavioural and attitudinal aspects of enterprise growth over time. A longitudinal approach is recommended.Practical implicationsIt is imperative that managers of financial cooperatives enhance their coordination, learning and competitive response capabilities through consultation, exchange and sharing of information among staff and other stakeholders, to increase the membership, capital and income volumes, depicting growth of financial cooperatives.Originality/valueThis study provides an insight on the mediating effect of networking on the enterprise growth of financial cooperatives in developing countries founded on networks theoretical framework. Unlike previous studies that modelled direct relationship of enterprise growth.

Community Banking Services and the Fight Against Poverty in Ghana: Could this be the Panacea for Sustainable Community Development?

The general objective of this study was to assess the effects of a cooperative society on the livelihood of farmers in Ghana. The convenience and simple random sampling methods of data collection were used to select two hundred (200) out of two thousand and seventeen (2,017) farmers who were clients of the study institution, and four staff at the cooperative studied for the research. The major instruments that were used comprised a structured questionnaire in both cases and an interview schedule for only those farmers who were unable to read. The data collected were analysed using the Statistical Product and Service Solution’ version 20 (SPSS) and Microsoft excel. The findings from the research indicate that services of the cooperative have led to significant improvements in the livelihood of the farmers. The conclusion reached was that the farmers were empowered by loans which enabled them acquire farms inputs, implements and other forms of assets. On the basis of these findings, it was recommended that establishment of financial cooperatives in farming communities should be encouraged by the government, district assemblies and community leaders to enable farmers improve on their productive entrepreneurial activities in agriculture to boost rural household incomes which implicitly fights rural poverty and improves national development.

Heterogeneity of associates, capital structure and profitability of non-financial cooperatives in Colombia

Esta investigación tiene como objetivo estudiar la estructura de capital y rentabilidad en organizaciones cooperativas. Con una base de datos de 199 cooperativas colombianas no financieras en el periodo 2009-2013 y estimando modelos panel, se encuentra que variaciones en la heterogeneidad socioeconómica de los asociados afecta la estructura de capital de largo plazo en 23%, la estructura de capital de corto plazo en 13% y la rentabilidad en 6%. Se concluye que el principio de libre entrada y salida de personas de organizaciones con propiedad colectiva y gobierno democrático incide en los indicadores financieros de la organización.

An innovative resilience approach: Financial self-help groups in contemporary financial landscapes in the Netherlands

This study questions efficiency-driven institutions in the financial sector during and after the financial crisis of 2008. Frustration about inadequately working financial institutions encouraged citizens to employ self-help initiatives reflected in the revival of, for example, financial cooperatives, sharing economies and community currencies. Some of these grassroots initiatives, such as financial self-help groups, are imported by migrants and refugees. Compared to the formal banking system, financial self-help groups claim effectivity and a human face instead of efficiency in operation and management. We look at financial self-help groups among Ethiopians and Ghanaians living in the Netherlands, placing these financial self-help groups within the contemporary financial landscape. Here, diversity instead of a monoculture of banking institutions shows us a way to a more sustainable financial system. Moreover, this article shows that a combination of different kinds of resilience creates possibilities for analysing the dynamics of a kaleidoscope of financial arrangements and institutions.

A comparative analysis of financial affordability in Islamic home financing instrumentsin Malaysia

Purpose This study aims to compare and contrast the financial affordability of Islamic home financing instruments such as bay’ bithaman ajil and musharakah mutanaqisah (MM) offered by various home financing institutions in Malaysia. Design/methodology/approach Mathematical simulations were carried out in examining the financial affordability (or lack thereof) of various Islamic home financing by both Islamic commercial banks (ICB) and financial cooperatives (FC). Findings This study has shown that MM by FC is a workable, more financially affordable option to potential homeowners. Unlike ICB, MM by FC uses rental rates as a benchmarking tool because of its inherent nature of flexibility. Research limitations/implications MM by FC has the potential to reduce the cost of home acquisition (purchase affordability) and the amount of monthly installments (repayment affordability) of homeowners in Malaysia. Originality/value This study shows the financial implication of unaffordable Islamic home financing instruments may have on the Malaysian households, which were derived from using official data from various government agencies.