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Micro-finance agencies and SMEs: model of explication of tacit knowledge

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  • Patricia A. Rowe
  • Michael J. Christie
  • Frank Hoy

Abstract

This paper contributes to a new area of research, namely: institutional preparedness of economic development agencies for developing small and medium-sized enterprises (SMEs). The cases presented illustrate variations in the micro-finance lender agency-enterprise development of processes for sharing vision and interdependence. In clarifying the nature of the agency-enterprise relationship along these two dimensions, we develop a set of propositions. Our model contends: 1) that effective processes for sharing vision and good cooperation maximise the likelihood of explication of tacit knowledge; 2) that ineffective processes for sharing vision and good cooperation lead to ad hoc explication of tacit knowledge; 3) ineffective processes for sharing vision and poor cooperation minimise the likelihood of explication of tacit knowledge; 4) effective processes for sharing vision and poor cooperation maximise the likelihood of explication of tacit knowledge.

Suggested Citation

  • Patricia A. Rowe & Michael J. Christie & Frank Hoy, 2010. "Micro-finance agencies and SMEs: model of explication of tacit knowledge," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 11(1), pages 55-73.
  • Handle: RePEc:ids:ijesbu:v:11:y:2010:i:1:p:55-73
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    References listed on IDEAS

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