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What drives micro-entrepreneurs’ value-oriented innovative behavior in microfinance: an entrepreneurial resourcefulness perspective

Author

Listed:
  • Jing A. Zhang

    (University of Otago)

  • Conor O’Kane

    (University of Otago)

  • Denis Griffin

    (Wairarapa Education, Business & Technology UCOL | Te Pukenga)

Abstract

Drawing on the perspective of entrepreneurial resourcefulness, we investigate how relational social ties in microfinance facilitate value-oriented innovative behavior through self-reliant financial bootstrapping. We also examine how joint bootstrapping interacts with self-reliant financial bootstrapping to influence value-oriented innovative behavior among micro-entrepreneurs. We apply both symmetrical (PLS-SEM) and asymmetrical (fsQCA) approaches to a sample of 292 micro-entrepreneurs engaged in microfinance in Mexico, a developing mixed-market economy. The PLS-SEM results demonstrate that self-reliant financial bootstrapping is an effective mechanism through which relational social ties positively impact value-oriented innovative behavior. Additionally, the positive role of self-reliant financial bootstrapping in value-oriented innovative behavior is more significant when micro-entrepreneurs have a low level of joint bootstrapping. These findings are reinforced by the fsQCA results, which show that value-oriented innovative behavior arises from various configurations of relational social ties, self-reliant financial bootstrapping, joint bootstrapping, and democratic and financial factors. Our findings offer important theoretical and practical implications.

Suggested Citation

  • Jing A. Zhang & Conor O’Kane & Denis Griffin, 2025. "What drives micro-entrepreneurs’ value-oriented innovative behavior in microfinance: an entrepreneurial resourcefulness perspective," Small Business Economics, Springer, vol. 65(3), pages 2033-2062, October.
    • Handle: RePEc:kap:sbusec:v:65:y:2025:i:3:d:10.1007_s11187-025-01081-8
    DOI: 10.1007/s11187-025-01081-8
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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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