IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v31y2019i3d10.1057_s41287-018-0155-2.html
   My bibliography  Save this article

Interrogating Microfinance Performance Beyond Products, Clients and the Environment: Insights From the Work of BRAC in Tanzania

Author

Listed:
  • Nicola Banks

    (The University of Manchester)

  • Dan Brockington

    (The University of Sheffield)

  • David Hulme

    (The University of Manchester)

  • Mathilde Maitrot

    (The University of York)

Abstract

The performance of microfinance organisations can depend on many factors. Current research emphasizes factors pertaining to clients, products, or broader environments, but researchers have paid less attention to the workings and internal systems of microfinance organisations. We explore how variation in performance within an organisation can alter the consequences of loans and their popularity among clients and potential clients. We illustrate with data from BRAC in Tanzania, where the arrival and rapid expansion of BRAC’s microfinance programme provides an apposite case study.

Suggested Citation

  • Nicola Banks & Dan Brockington & David Hulme & Mathilde Maitrot, 2019. "Interrogating Microfinance Performance Beyond Products, Clients and the Environment: Insights From the Work of BRAC in Tanzania," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 339-363, July.
  • Handle: RePEc:pal:eurjdr:v:31:y:2019:i:3:d:10.1057_s41287-018-0155-2
    DOI: 10.1057/s41287-018-0155-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41287-018-0155-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41287-018-0155-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joanna Ledgerwood & Victoria White, 2006. "Transforming Microfinance Institutions : Providing Full Financial Services to the Poor," World Bank Publications - Books, The World Bank Group, number 7086, December.
    2. Richard L. Meyer, 2002. "The demand for flexible microfinance products: lessons from Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(3), pages 351-368.
    3. J. Copestake & P. Dawson & J.-P. Fanning & A. McKay & K. Wright-Revolledo, 2005. "Monitoring the Diversity of the Poverty Outreach and Impact of Microfinance: A Comparison of Methods Using Data from Peru," Development Policy Review, Overseas Development Institute, vol. 23(6), pages 703-723, November.
    4. Hartarska, Valentina M., 2005. "Governance and Performance of Microfinance Institutions in Central and Eastern Europe and the Newly Independent States," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24568, European Association of Agricultural Economists.
    5. Katsushi S. Imai & MD. Shafiul Azam, 2011. "Does Microfinance Reduce Poverty in Bangladesh? New Evidence from Household Panel Data," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 633-653, October.
    6. Ahlin, Christian & Lin, Jocelyn & Maio, Michael, 2011. "Where does microfinance flourish? Microfinance institution performance in macroeconomic context," Journal of Development Economics, Elsevier, vol. 95(2), pages 105-120, July.
    7. Boehe, Dirk Michael & Barin Cruz, Luciano, 2013. "Gender and Microfinance Performance: Why Does the Institutional Context Matter?," World Development, Elsevier, vol. 47(C), pages 121-135.
    8. Brian T. Pentland & Martha S. Feldman & Markus C. Becker & Peng Liu, 2012. "Dynamics of Organizational Routines: A Generative Model," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1484-1508, December.
    9. Hartarska, Valentina, 2005. "Governance and performance of microfinance institutions in Central and Eastern Europe and the Newly Independent States," World Development, Elsevier, vol. 33(10), pages 1627-1643, October.
    10. Daniel Makina & Louisa Malobola, 2004. "Impact assessment of microfinance programmes, including lessons from Khula Enterprise Finance," Development Southern Africa, Taylor & Francis Journals, vol. 21(5), pages 799-814.
    11. Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    12. Tchakoute-Tchuigoua, Hubert, 2010. "Is there a difference in performance by the legal status of microfinance institutions?," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(4), pages 436-442, November.
    13. Rob Dixon & John Ritchie & Juliana Siwale, 2007. "Loan officers and loan ‘delinquency’ in Microfinance: A Zambian case," Accounting Forum, Taylor & Francis Journals, vol. 31(1), pages 47-71, March.
    14. Jennifer A. Howard-Grenville, 2005. "The Persistence of Flexible Organizational Routines: The Role of Agency and Organizational Context," Organization Science, INFORMS, vol. 16(6), pages 618-636, December.
    15. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series 190, World Institute for Development Economic Research (UNU-WIDER).
    16. Marrit van den Berg & Robert Lensink & Roselia Servin, 2015. "Loan Officers' Gender and Microfinance Repayment Rates," Journal of Development Studies, Taylor & Francis Journals, vol. 51(9), pages 1241-1254, September.
    17. Mark Schreiner, 2002. "Aspects of outreach: a framework for discussion of the social benefits of microfinance," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 591-603.
    18. van Rooyen, C. & Stewart, R. & de Wet, T., 2012. "The Impact of Microfinance in Sub-Saharan Africa: A Systematic Review of the Evidence," World Development, Elsevier, vol. 40(11), pages 2249-2262.
    19. Cull, Robert & Demirgüç-Kunt, Asli & Morduch, Jonathan, 2011. "Does Regulatory Supervision Curtail Microfinance Profitability and Outreach?," World Development, Elsevier, vol. 39(6), pages 949-965, June.
    20. Marc Labie & Pierre-Guillaume Méon & Ariane Szafarz, 2009. "Discrimination in Microfinance: The Role of Credit Officers," Working Papers CEB 09-017.RS, ULB -- Universite Libre de Bruxelles.
    21. Orazio Attanasio & Britta Augsburg & Ralph De Haas & Emla Fitzsimons & Heike Harmgart, 2015. "The Impacts of Microfinance: Evidence from Joint-Liability Lending in Mongolia," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 90-122, January.
    22. Rients Galema & Robert Lensink & Roy Mersland, 2012. "Do Powerful CEOs Determine Microfinance Performance?," Journal of Management Studies, Wiley Blackwell, vol. 49(4), pages 718-742, June.
    23. Leif Atle Beisland & Roy Mersland, 2012. "The use of microfinance services among economically active disabled people: Evidence from Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 24, pages 69-83, January.
    24. Rodrigo Canales, 2014. "Weaving Straw into Gold: Managing Organizational Tensions Between Standardization and Flexibility in Microfinance," Organization Science, INFORMS, vol. 25(1), pages 1-28, February.
    25. Abhijit Banerjee & Esther Duflo & Rachel Glennerster & Cynthia Kinnan, 2015. "The Miracle of Microfinance? Evidence from a Randomized Evaluation," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 22-53, January.
    26. Ashim Kumar Kar & Ranjula Bali Swain, 2014. "Competition in Microfinance: Does It Affect Performance, Portfolio Quality, and Capitalization?," Palgrave Studies in Impact Finance, in: Roy Mersland & R. Øystein Strøm (ed.), Microfinance Institutions, chapter 11, pages 208-226, Palgrave Macmillan.
    27. Abu Zafar Shahriar, 2012. "Impact of Microfinance on Seasonal Hardship in Northern Bangladesh: A Propensity Score Matching Approach," Journal of South Asian Development, , vol. 7(1), pages 43-64, April.
    28. Roy Mersland & Reidar Øystein Strøm, 2008. "Performance and trade-offs in Microfinance Organisations-does ownership matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(5), pages 598-612.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Niels Hermes & Marek Hudon, 2018. "Determinants Of The Performance Of Microfinance Institutions: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1483-1513, December.
    2. Ahmad Nawaz & Sana Iqbal & Sadaf Ehsan, 2018. "Does Social Performance Drive Corporate Governance Mechanism In Case of Asian MFIs? An Issue of Endogeneity," Global Business Review, International Management Institute, vol. 19(4), pages 988-1012, August.
    3. Hermes, Cornelis & Hudon, M., 2018. "Determinants of the Performance of Microfinance Institutions: A Systematic Review," Research Report 2018008, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    4. Nawaz, Ahmad & Iqbal, Sana, 2015. "Does Social Performance Drives Corporate Governance Mechanism in MFIs? An Issue of Endogeneity," MPRA Paper 65312, University Library of Munich, Germany.
    5. Nawaz, Ahmad & Iqbal, Sana, 2015. "Financial Performance And Corporate Governance In Microfinance: Who Drives Who? An Evidence From Asia," MPRA Paper 65327, University Library of Munich, Germany.
    6. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    7. Hossain, Shahadat & Galbreath, Jeremy & Hasan, Mostafa Monzur & Randøy, Trond, 2020. "Does competition enhance the double-bottom-line performance of microfinance institutions?," Journal of Banking & Finance, Elsevier, vol. 113(C).
    8. Aruna Balammal & R. Madhumathi & M.P. Ganesh, 2016. "Pentagon Performance Model of Indian MFIs," Paradigm, , vol. 20(1), pages 1-13, June.
    9. Tchakoute-Tchuigoua, Hubert & Soumaré, Issouf, 2019. "The effect of loan approval decentralization on microfinance institutions' outreach and loan portfolio quality," Journal of Business Research, Elsevier, vol. 94(C), pages 1-17.
    10. Bibi, Uzma & Balli, Hatice Ozer & Matthews, Claire D. & Tripe, David W.L., 2018. "New approaches to measure the social performance of microfinance institutions (MFIs)," International Review of Economics & Finance, Elsevier, vol. 53(C), pages 88-97.
    11. Simon Zaby, 2019. "Science Mapping of the Global Knowledge Base on Microfinance: Influential Authors and Documents, 1989–2019," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    12. Wijesiri, Mahinda & Yaron, Jacob & Meoli, Michele, 2017. "Assessing the financial and outreach efficiency of microfinance institutions: Do age and size matter?," Journal of Multinational Financial Management, Elsevier, vol. 40(C), pages 63-76.
    13. Namrata Gupta & Anita Mirchandani, 2020. "Corporate governance and performance of microfinance institutions: recent global evidences," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(2), pages 307-326, June.
    14. Soumaré, Issouf & Tchakoute Tchuigoua, Hubert & Hessou, Hélyoth T.S., 2020. "Are microfinance institutions resilient to economic slowdown? Evidence from their capital ratio adjustment over the business cycle," Economic Modelling, Elsevier, vol. 92(C), pages 1-22.
    15. Iqbal, Sana & Nawaz, Ahmad & Ehsan, Sadaf, 2019. "Financial performance and corporate governance in microfinance: Evidence from Asia," Journal of Asian Economics, Elsevier, vol. 60(C), pages 1-13.
    16. Md. Ali Rasel & Sandar Win, 2020. "Microfinance governance: a systematic review and future research directions," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(7), pages 1811-1847, April.
    17. Wijesiri, Mahinda & Yaron, Jacob & Meoli, Michele, 2015. "Performance of microfinance institutions in achieving the poverty outreach and financial sustainability: When age and size matter?," MPRA Paper 69821, University Library of Munich, Germany.
    18. Sujani Thrikawala & Stuart Locke & Krishna Reddy, 2017. "Dynamic endogeneity and corporate governance-performance relationship," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 44(5), pages 727-744, October.
    19. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    20. Dan Brockington & Nicola Banks, 2014. "Exploring the Success of BRAC Tanzania’s Microcredit Programme," Global Development Institute Working Paper Series 20214, GDI, The University of Manchester.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:eurjdr:v:31:y:2019:i:3:d:10.1057_s41287-018-0155-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.