Microfinance Institutions Influenced by National Culture: An Evidence Based on Investigating 35 Countries

Microfinance Institutions Influenced by National Culture: An Evidence Based on Investigating 35 Countries

Zsuzsanna Banász (University of Pannonia, Hungary) and Anikó Csepregi (University of Pannonia, Hungary)
DOI: 10.4018/978-1-5225-2716-9.ch010
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Abstract

Many studies deal with the determinants of countries' culture or efficiency of microfinance institutions (MFIs). The purpose of this chapter is to fill the gap in the literature, namely, to analyze the connection between national cultural features and indicators of countries' microfinance institutions. The authors summarize the mission and operation of microfinance institutions, the six dimensions of national culture and three knowledge strategies. 35 countries representing the subject of the research, the statistics of which are available for both MFIs' side and national cultural side. The rank correlation and the investigation of TOP 5 countries show that the MFIs are successful in countries characterized by high level of power distance, collectivistic culture, high level of uncertainty avoidance and restraint culture. The chapter also lists few countries where MFIs could be successfully introduced based on their national cultural features and recommends certain knowledge strategies for effective operation.
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Background

This section starts with previous studies on microfinance institutions (MFIs) that is aimed to reduce poverty. The next part is about national cultural peculiarities which can determine the efficiency of MFIs. This section ends with the importance of knowledge strategy that can help the operation of MFIs.

This paper aims to fill in the gap in the literature of, i.e. analysing the connection between MFIs and national cultural features.

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