Strategic responses of microfinance institutions to the Coronavirus disease (COVID-19) crisis in Ghana

Yeboah, Thomas; Antoh, Ernestina Fredua; Kumi, Emmanuel

doi:10.1080/09614524.2021.1991890

Cited by 7 publications

(5 citation statements)

References 13 publications

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“…The study applied the contingency theory to assess how the SACCOS borrowers had prepared to repay their loans during the contingency situations. Despite scholars such as; Shrestha (2020), Cytonn (2021), Mgema and Komba (2020) and Yeboah et al (2021) declaring that COVID-19 has affected the provision of financial services in MFIs and SACCOS but none of the studies had assessed empirically how the COVID-19 pandemics influenced the loan repayment. Furthermore, the studies concentrated on MFI related variables and not on how borrowers' strategies promoted loan repayment during contingency situations such as COVID-19 pandemic.…”

Section: Emergency Of Covid-19mentioning

confidence: 99%

“…In Ghana, COVID-19 restricted MFI's new loan disbursement, collections and repayments. Therefore, the COVID-19 pandemic prompted MFIs to reschedule repayment of loans, reduce physical loan activities and apply digital loan technologies (Yeboah et al, 2021). In Pakistan, the income of the MFIs clients declined by 90% due to the COVID-19 pandemic.…”

Section: Covid-19 Influence On Loan Repayment In Mfismentioning

confidence: 99%

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Clients’ Demographics and Strategies Influence on Loan Repayment during Covid-19 Pandemic: Evidence from Tanzanian Savings and Credits Cooperative Societies (SACCOS)

Magali

2023

PAJBM

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The study assessed the influence of the clients’ demographics and strategies on loan repayment during the Corona Outbreak (COVID-19) in Tanzania. The study used Morogoro and Mvomero Teachers SACCOS (MMTS) as its case. The cross-sectional and explanatory designs, survey strategy and random sampling were applied to selected 98 SACCOS borrowers for the study. IBM SPSS software was used to enter the data and analysis was executed using descriptive and Ordinary Least Square (OLS) techniques. The study unveiled that COVID-19 deteriorated the loan portfolio during the pandemic. The findings further uncovered that the business owners were mostly affected by the pandemic and the majority of the borrowers repaid their loans using alternative sources of income. The regression analysis revealed that the amount of loan borrowed positively and significantly influenced the loan repayment while age, level of education and economic activity negatively and significantly influenced the loan repayment. The study concluded that during the COVID-19 pandemic, the repayment of loans for Tanzanian SACCOS was not conducive because of poor repayment strategies and the influence of clients’ demographic factors. The study recommended policymakers to design policies that would enhance the repayment of loans for SACCOS borrowers during pandemics. The study contributed to the contingency theory by recommending borrowers’ diverse loan repayment strategies during contingency situations.

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Section: Emergency Of Covid-19mentioning

confidence: 99%

Section: Covid-19 Influence On Loan Repayment In Mfismentioning

confidence: 99%

Clients’ Demographics and Strategies Influence on Loan Repayment during Covid-19 Pandemic: Evidence from Tanzanian Savings and Credits Cooperative Societies (SACCOS)

Magali

2023

PAJBM

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“…Salespeople who can absorb as much information as possible from customers can transform this information into new ideas according to customer requests (Mammadbayov et al, 2021). When dealing with customers, MFI salespeople often face different client characteristics, such as gender, age, business scale, and occupation (Yeboah et al, 2022). Therefore, to implement an innovative sales strategy, good adaptability is required.…”

Section: Adaptive Selling Capability and Innovative Selling Behaviormentioning

confidence: 99%

Examining the Antecedents and Consequences of Adaptive Selling Capability: Study from Microfinance Institutions in Indonesia

Ahmadi

Widhiastuti

Helmy

et al. 2023

ABAC J

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In the heated business competition of today’s financial services sector, small conventional banks such as microfinance institutions (MFIs) must maintain superior salespeople with adaptive selling capabilities to increase sales performance. Therefore, it is critical to investigate the determinant factor and consequences of salespeople’s adaptive selling capability. This study proposed to examine the effect of psychological empowerment dimensions, namely: meaning, competence, self-determination, and impact, on adaptive selling capability. In addition, this research also scrutinises the link between adaptive selling capability and sales performance by examining innovative selling behavior as a mediating variable. A total of 205 salespeople from 34 MFIs in Central Java, Indonesia, participated in the survey. Based on structural equation modelling (PLS-SEM) analyses, this study found that psychological empowerment dimensions significantly affect adaptive selling capability. Findings also demonstrate that adaptive selling capability positively influences innovative selling behaviour. Finally, the results revealed that innovative selling behaviour mediates the relationship between adaptive selling capability and sales performance. This research provides insight for MFI managers to improve sales performance by cultivating employee psychological empowerment, which impacts adaptive selling capability and innovative selling behavior.

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“…This may represent a smaller figure given the relatively large percentage of unregistered microfinance institutions in the country. The recent financial clean-up, which resulted in the revocation of licenses for 347 registered institutions, as well as the novel coronavirus, have slowed the microfinance market's growth trajectory (Yeboah et al 2022 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…This has induced several concerns among policymakers about the optimal national approach to tackle inequality and poverty in the country. Despite this, one cannot fail to recognize the growing size of the microfinance market in the country (Appietu et al 2020 ; Yeboah et al 2022 ). For instance, between 2000 and 2013, the total number of microfinance clients in Ghana grew at an annual compound rate of 16 percent, while deposits and loans grew by 21 percent and 25 percent respectively (GHAMFIN 2014 ; World Bank 2016 ).…”

Section: Introductionmentioning

confidence: 99%

Spatial analysis of the effect of microfinance on poverty and inequality in Ghana

2022

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Although microfinance is usually delivered with a spatial outlook, the literature is so far silent on the potential spatial effect of microfinance delivery. The aim of this study was, therefore, to examine the effect of microfinance intensity on spatial inequality and poverty in Ghana. Using the 6th (2012/2013) and 7th (2016/2017) rounds of data from a national survey on living standards in Ghana, the study first examined the pattern of district-level poverty and inequality in Ghana and then adopted spatial econometric techniques to explore the spatial correlation between microfinance, inequality, and poverty. The results revealed that microfinance has a significant negative impact on spatial inequality and poverty in Ghana. The spatial effect of microfinance intensity on poverty and inequality is characterized by both direct and spillover effects on neighbours. It was identified that the outreach of microfinance drives within-district disparity, whereas the disparity in microfinance credit distribution powers between-district disparity. Additionally, while there is evidence of an indirect effect, the indirect effect diffuses monotonically as the number of neighbours increases. The study's findings advocate for a complementary approach to microfinance delivery, as well as the elimination of institutional barriers that limit access, availability, and operational delivery of microfinance services in order to achieve spatially optimal microfinance delivery. Supplementary Information The online version contains supplementary material available at 10.1007/s40847-022-00210-3.

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Strategic responses of microfinance institutions to the Coronavirus disease (COVID-19) crisis in Ghana

Cited by 7 publications

References 13 publications

Clients’ Demographics and Strategies Influence on Loan Repayment during Covid-19 Pandemic: Evidence from Tanzanian Savings and Credits Cooperative Societies (SACCOS)

Clients’ Demographics and Strategies Influence on Loan Repayment during Covid-19 Pandemic: Evidence from Tanzanian Savings and Credits Cooperative Societies (SACCOS)

Examining the Antecedents and Consequences of Adaptive Selling Capability: Study from Microfinance Institutions in Indonesia

Spatial analysis of the effect of microfinance on poverty and inequality in Ghana

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