2013
DOI: 10.1002/tie.21569
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Encouraging Entrepreneurship: Microfinance, Knowledge Support, and the Costs of Operating in Institutional Voids

Abstract: 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 contex… Show more

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Cited by 44 publications
(31 citation statements)
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“…First, although we investigated the role of cultural dimensions, these may not be the only meaningful moderators. The strength of social exchanges may also vary, for example, as a function of the extent to which countries' institutions have embraced modernity (e.g., Chakrabarty 2009;Chakrabarty and Bass 2013, 2014a, b, 2015Inglehart and Baker 2000;Parboteeah et al 2004). Furthermore, because cultural dimensions exert their influence in ''bundles'' rather than isolated from one another, their simultaneous influence needs to be assessed.…”
Section: Limitations and Future Researchmentioning
confidence: 98%
“…First, although we investigated the role of cultural dimensions, these may not be the only meaningful moderators. The strength of social exchanges may also vary, for example, as a function of the extent to which countries' institutions have embraced modernity (e.g., Chakrabarty 2009;Chakrabarty and Bass 2013, 2014a, b, 2015Inglehart and Baker 2000;Parboteeah et al 2004). Furthermore, because cultural dimensions exert their influence in ''bundles'' rather than isolated from one another, their simultaneous influence needs to be assessed.…”
Section: Limitations and Future Researchmentioning
confidence: 98%
“…This is measured as ratio of the foreign direct investment inflow to gross domestic product of the target country (Chakrabarty & Bass, 2013a;World Bank, 2011). Inflow of FDI is both an indication of, and a contributor to, better investment climates, and hence we control for the same.…”
Section: Foreign Direct Investmentmentioning
confidence: 99%
“…Given that the benefits of environmental programs can extend across organizational functions, we believe that there will be future research opportunities to integrate the organizational learning literature with the environmental management literature. There is substantial scope to extend recent research on how organizational factors play a role in the transfer of knowledge across organizational functions (Chakrabarty, in press; Chakrabarty & Bass, 2013a, 2013b).…”
Section: Discussionmentioning
confidence: 54%