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Institutionalizing Ethics In Institutional Voids: Building Positive Ethical Strength To Serve Women Microfinance Borrowers In Negative Contexts, Subrata Chakrabarty, A E. Bass
Institutionalizing Ethics In Institutional Voids: Building Positive Ethical Strength To Serve Women Microfinance Borrowers In Negative Contexts, Subrata Chakrabarty, A E. Bass
Subrata Chakrabarty
This study examines whether microfinance institutions (MFIs) that serve women borrowers at the base of the economic pyramid are likely to adopt a written code of positive organizational ethics (POE). Using econometric analysis of operational and economic data of a sample of MFIs from across the world, we find that two contextual factors —poverty level and lack of women's empowerment— moderate the influence of an MFI's percentage of women borrowers on the probability of the MFI having a POE code. MFIs that serve more women borrowers are more likely to adopt a POE code, especially in negative contexts (where women …
Corporate Governance In Microfinance Institutions: Board Composition And The Ability To Face Institutional Voids, Subrata Chakrabarty, A E. Bass
Corporate Governance In Microfinance Institutions: Board Composition And The Ability To Face Institutional Voids, Subrata Chakrabarty, A E. Bass
Subrata Chakrabarty
Research Question/Issue: We utilize institutional theory to examine corporate governance in microfinance institutions (MFIs). Many MFIs operate at the bottom of the economic pyramid (BOP), which is usually agrarian, impoverished, and plagued with institutional voids. We investigate the link between the composition of the boards of MFIs and the ability of the MFIs to face institutional voids to ensure organizational viability.
Research Findings/Insights: We find that MFIs with boards that have more socio-economic expertise and female representation are better able to lower the MFI’s costs of operating at the BOP. However, this relationship weakens when the effectiveness of agrarian institutions …
Encouraging Entrepreneurship: Microfinance, Knowledge Support, And The Costs Of Operating In Institutional Voids, Subrata Chakrabarty, A E. Bass
Encouraging Entrepreneurship: Microfinance, Knowledge Support, And The Costs Of Operating In Institutional Voids, Subrata Chakrabarty, A E. Bass
Subrata Chakrabarty
This study focuses on the supplemented strategies of microfinance institutions (MFIs), in which the MFI offers nonfinancial services, such as entrepreneurship related knowledge, in addition to financial services to impoverished borrowers at the bottom of the pyramid (BoP). We examine two contextual factors— foreign direct investment (FDI) and loan defaults— to better understand the relationship between providing knowledge support to encourage entrepreneurship and costs of operating at the BoP for MFIs. In contexts where FDI is low and loan defaults are high, providing knowledge support to encourage entrepreneurship aggravates the MFI's costs of operating at the BoP. However, in contexts …