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The impact of international influence on microbanks' performance: A global survey

  • Mersland, Roy
  • Randøy, Trond
  • Strøm, Reidar Øystein

Microbanks serve micro-enterprises and poor people with financial services. This study examines how various aspects of international influence affect microbanks' financial and social performance. Grounded in agency theory and resource-based theory, we argue that there are multiple ways that the internationalization of microbanks might affect performance. Specifically, we argue that one can distinguish between four sources of such internationalization effects; international initiator, international directorship, international debt, and international affiliation/networks. This study utilizes data from 379 microbanks in 73 developing countries - assessed between 2001 and 2008. We find that the internationalization of microbanks to a large extend enhances social performance, but does not enhance financial performance.

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Article provided by Elsevier in its journal International Business Review.

Volume (Year): 20 (2011)
Issue (Month): 2 (April)
Pages: 163-176

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Handle: RePEc:eee:iburev:v:20:y:2011:i:2:p:163-176
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  1. Oxelheim, Lars & Randøy, Trond & Stonehill, Arthur, 2001. "On the Treatment of Finance-Specific Factors Within the OLI Paradigm," Working Paper Series 554, Research Institute of Industrial Economics.
  2. Morduch, Jonathan, 2000. "The Microfinance Schism," World Development, Elsevier, vol. 28(4), pages 617-629, April.
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  21. repec:hhs:iuiwop:554 is not listed on IDEAS
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