nach oben

Review of Managerial Science

17.05.2024 | Original Paper

Governing professional microfinance associations: the Tanzanian case through the prism of institutional design

verfasst von: Tristan Caballero-Montes, Cécile Godfroid

Erschienen in: Review of Managerial Science

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Given recent criticisms, orienting the practices of microfinance institutions towards the achievement of their social missions is critical. Going beyond the dichotomous “government-or-market” view, we investigate a fundamental but barely studied actor: professional microfinance associations (MFAs). Despite their central position and the roles that they aim to endorse in the field, MFAs face organizational and governance obstacles limiting their impact, including free riding among member organizations. Our study explores the root causes of free riding within microfinance associations. Thanks to a three-month stay at the Tanzanian MFA, TAMFI, we carried out an immersive fieldwork, which enabled us to collect diverse types of qualitative data, in an inductive perspective: observations during multiple events related to TAMFI’s activities and initiatives, multiple semi-directed interviews with key, local, stakeholders, and reviews of specific documents and reports available at the MFA. Discovering the organizational issues faced by the MFA, we used Elinor Ostrom’s institutional design principles for governing collective action as theoretical lenses, which helped explain some of the mechanisms preventing the MFA to play its desired roles. Among root causes of free riding, we identified trade-offs related to membership heterogeneity, inappropriate distribution of inputs and outputs among member organizations, the lack of monitoring and sanctioning capacity of the associations, and a weak integration into regulatory processes, especially. With a theoretical contribution, we also suggest interdependencies among these institutional issues, which should be considered when governing microfinance associations.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Savings and credit cooperatives.

From recent contacts with the field, it appeared that the 2020 covid crisis slowed the enforcement of regulations and the deployment of the system for registering MFIs. The grace period was thus extended.

TAMFI collected uncomprehensive information on Tanzanian MFIs. This relates to participating MFIs only.

Village and community banks.

As of early 2022.

ADA – Appui au Développement Autonome (2010) Practice and innovation in microfinance. N°2

Adams A, Tewari DD (2021) Client protection and microfinance regulation: lessons from Africa. Savings Dev 43:1–20

Afonso JS, Morvant-Roux S, Guérin I (2017) Doing good by doing well? Microfinance, self-regulation and borrowers’ over-indebtedness in the Dominican Republic. J Int Dev 29(7):919–935. https://doi.org/10.1002/jid.3244CrossRef

Ahrne G, Brunsson N (2005) Organizations and meta-organizations. Scand J Manag 21(4):429–424. https://doi.org/10.1016/j.scaman.2005.09.005CrossRef

Albareda L, Sison AJ (2020) Commons organizing: embedding common good and institutions for collective action. Insights from ethics and economics. J Bus Ethics 166(4):727–743. https://doi.org/10.1007/s10551-020-04580-8CrossRef

Auerbach C, Silverstein L (2003) Qualitative data: an introduction to coding and analysis. University, New York

Beck T (2020) Finance, institutions and development. In: Baland J-M, Bourguignon F, Platteau J-P, Verdier (eds) The handbook of institutions and economic development. T., Princeton University Press, Princeton, pp 218–251CrossRef

BOT – Bank of Tanzania (2005) Tanzania microfinance institutions directory

Bowen F (2019) Marking their own homework: the pragmatic and moral legitimacy of industry self-regulation. J Bus Ethics 156(1):257–272. https://doi.org/10.1007/s10551-017-3635-yCrossRef

Brickell K, Picchioni F, Natarajan N, Guermond V, Parsons L, Zanello G, Bateman M (2020) Compounding crises of social reproduction: Microfinance, over-indebtedness and the COVID-19 pandemic. World Dev 136:105087. https://doi.org/10.1016/j.worlddev.2020.105087CrossRef

Brouwers D (2015) Effective codes of conduct: a guide for microfinance associations. SEEP Network report

Brüntrup M (2003) Les associations des institutions de microfinance: Le Cas De L’association professionnelle des institutions de la microfinance du Mali. GTZ report

Caballero-Montes T (2023) Integrating market conditions into regulatory decisions on microfinance interest rates: does competition matter? Ann Finance 19(2):201–232. https://doi.org/10.1007/s10436-022-00417CrossRef

Caballero-Montes T, Godfroid C, Labie M (2021) Are interest rate caps a relevant tool to cool down overheating microfinance markets? Strategic Change 30(4):319–330. https://doi.org/10.1002/jsc.2426CrossRef

Chen G, Rasmussen S (2005) Emerging issues for national microfinance associations. ShoreBank Advisory Services and Pakistan Microfinance Association

Cook T, Isem J (2004) What is a network? The diversity of networks in microfinance today. CGAP Occasional paper, N°26

Dardot P, Laval C (2014) Commun. Essai sur la révolution Au XXie siècle. La Découverte, Paris

De Gobbi M (2003) The role of a professional association in mutual microfinance: The case of Madagascar. International Labour Organization Working Paper, N° 37

Demsetz H (1967) Toward a theory of property rights. Am Econ Rev 57(2):347–359. https://doi.org/10.1057/9780230523210_9CrossRef

Dezso D (2015) Microfinance associations: roles and new leadership opportunities. SEEP Network report

Di Maggio PJ, Powel WW (1991) The New Institutionalism in organizational analysis. University of Chicago Press

Elkington J (2006) Governance for sustainability. Corp Governance: Int Rev 14(6):522–529CrossRef

Fournier V (2013) Commoning: on the social organisation of the commons. M@n@gement 16(4):433–453. https://doi.org/10.3917/mana.164.0433CrossRef

Friedman A, Phillips M (2004) Balancing strategy and accountability: a model for the governance of professional associations. Nonprofit Manage Leadersh 15(2):187–204. https://doi.org/10.1002/nml.61CrossRef

Ghate P (2007) Consumer protection in Indian microfinance: lessons from Andra Pradesh and the Microfinance Bill. Economic Political Wkly 42(13):1176–1184

Glaser B (1978) Theoretical sensitivity. Sociology, Mill Valley

Grafton QR (2000) Governance of the commons: a role for the state. Land Econ 76(4):504–517. https://doi.org/10.2307/3146949CrossRef

Green NW (2020) Regulating over-indebtedness: local state power in Cambodia’s microfinance market. Dev Change 51(6):1429–1453. https://doi.org/10.1111/dech.12620CrossRef

Gross R, Brüntrup M (2003) Microfinance associations (MFA): their role in developing the Microfinance Sector. GTZ report

Guérin I, Labie M, Morvant-Roux S (2018) Inadequate growth, over-indebtedness, and crises in microcredit: what have we learned? Enterp Dev Microfinance 29(2):118–132. https://doi.org/10.3362/1755-1986.17-00013CrossRef

Gugerty MK (2008) The effectiveness of NGO self-regulation: theory and evidence from Africa. Public Administration and Development. Int J Manage Res Pract 28(2):105–118. https://doi.org/10.1002/pad.490CrossRef

Guillemette F, Luckerhoff J (2009) L’induction en méthodologie de la théorisation enracinée (MTE). Recherches Qualitatives 28(2):3–20CrossRef

Guillemette F, Luckerhoff J (2012) Méthodologie De La théorisation enracinée: fondements, procédures et usages. Presses de l’Université du Québec: Québec

Gulati R, Puranam P, Tushman M (2012) Meta-organization design: rethinking design in interorganizational and community contexts. Strateg Manag J 33(6):571–586. https://doi.org/10.1002/smj.1975CrossRef

Gunningham N, Rees J (1997) Industry self-regulation: an institutional perspective. Law Policy 19(4):363–414. https://doi.org/10.1111/1467-9930.t01-1-00033CrossRef

Gupta N, Mirchandani A (2020) Corporate governance and performance of microfinance institutions: recent global evidences. J Manage Governance 24:307–326. https://doi.org/10.1007/s10997-018-9446-4CrossRef

Hardin G (1968) The tragedy of the commons: the population problem has no technical solution; it requires a fundamental extension in morality. Science 162(3859):1243–1248. https://doi.org/10.1126/science.162.3859.1243CrossRef

Haufler V (2001) A public role for the private sector: industry self-regulation in a global economy. The Carnegie Endowment for International Peace, Washington

Héritier A, Eckert S (2009) Self-regulation by associations: collective action problems in European environmental regulation. Bus Politics 11(1):1–22. https://doi.org/10.2202/1469-3569.1250CrossRef

Hudak K (2011) Building microfinance associations: goals, implementation and policy implications. Nonprofit Policy Forum 2(1):1–24. https://doi.org/10.2202/2154-3348.1020CrossRef

Hummel J, Berends H, Tuertscher P (2017) What do we have in common? Collective action among heterogeneous actors in a meta-organization. EGOS Conference, https://www.egos.org/jart/prj3/egos/releases/de/upload/Uploads/MBA-2017_st-24_Hummel_et-al.pdf (accessed on 13th February 2022)

Jamali D, Safieddine AM, Rabbath M (2008) Corporate governance and corporate social responsibility synergies and interrelationships. Corp Governance: Int Rev 16(5):443–459. https://doi.org/10.1111/j.1467-8683.2008.00702.xCrossRef

Jones P (2004) All for one and one for all’: transactions cost and collective action. Polit Stud 52(3):450–468. https://doi.org/10.1111/j.1467-9248.2004.00490.xCrossRef

Kendall N (1999) Good corporate governance, ‘Accountants’ Digest, vol 40. The ICA in England and Wales, UK

Kilbane SC, Beck JH (1990) Professional associations and the free rider problem: the case of optometry. Public Choice 65(2):181–187CrossRef

King AA, Lenox MJ (2000) Industry self-regulation without sanctions: the chemical industry’s responsible Care Program. Acad Manag J 43(4):698–716. https://doi.org/10.5465/1556362CrossRef

Knoke D (1988) Incentives in collective action organizations. Am Sociol Rev 53(3):311–329. https://doi.org/10.2307/2095641CrossRef

Lapenu C, Konini Z, Razakaharivelo C (2009) Évaluation De La Performance Sociale: les enjeux d’une Finance Responsable. Revue Tiers Monde 197(1):37–54. https://doi.org/10.3917/rtm.197.0037CrossRef

Lapoutte A (2021) Résilience D’une méta-organisation: Le Cas D’un Commun De L’alimentation. Ann Public Cooper Econ 92(1):79–100. https://doi.org/10.1111/apce.12288CrossRef

Lejeune C (2019) Manuel d’analyse qualitative. Analyser sans compter ni classer (2nd ed.). De Boeck, Louvain-la-Neuve

Lenox LJ (2006) The role of private decentralized institutions in sustaining industry self-regulation. Organ Sci 17(6):677–690. https://doi.org/10.1287/orsc.1060.0211CrossRef

Lenox MJ, Nash J (2003) Industry self-regulation and adverse selection: a comparison across four trade association programs. Bus Strategy Environ 12:343–356. https://doi.org/10.1002/bse.380CrossRef

Lovejoy TE (2006) Protected areas: a prism for a changing world. Trends Ecol Evol 21(6):329–333. https://doi.org/10.1016/j.tree.2006.04.005CrossRef

MFP – Ministry of Finance and Planning (2017) National Microfinance Policy

Milana C, Ashta A (2020) Microfinance and financial inclusion: challenges and opportunities. Strategic Change 29(3):257–266. https://doi.org/10.1002/jsc.2339CrossRef

Mirondo R (2016) Microfinance Institutions Have Trust in New Law. The Citizine. https://www.thecitizen.co.tz/tanzania/magazines/microfinance-institutions-have-trust-in-new-law-2570672 (accessed on 13th February 2022)

Mori N, Mersland R (2014) Boards in microfinance institutions: how do stakeholders matter? J Manage Governance 18:235–313. https://doi.org/10.1007/s10997-011-9191-4CrossRef

Olson M (1965) The logic of collective action: public goods and the theory of groups. Harvard University Press, CambridgeCrossRef

Ostrom E (1990) Governing the commons: the evolution of institutions for collective action. Cambridge University Press, CambridgeCrossRef

Ostrom E (2005) Understanding institutional diversity. Princeton University Press, Princeton

Ostrom E (2008) Design principles of robust property–rights institutions: What have we learned Proceedings of the 2008 Land Policy Conference, Lincoln Institute, pp. 23–52, https://www.lincolninst.edu/sites/default/files/pubfiles/2076_1399_LP2008-ch02-Design-Principles-of-Robust-Property-Rights-Institutions_0.pdf (accessed on 13th February 2022)

Ostrom E (2010) Beyond markets and states: polycentric governance of complex economic systems. Am Econ Rev 100(3):641–672CrossRef

Périlleux A, Nyssens M (2017) Understanding cooperative finance as a new common. Ann Public Cooper Econ 88(2):155–177. https://doi.org/10.1111/apce.12160CrossRef

Posner RA (1977) Economic analysis of Law. Wolters Kluwer

Raymond L (2003) Private rights in public resources: equity and property allocation in market-based environmental policy. Resources for the Future, Washington

Rubambey G (2005) Policy, regulatory and supervisory environment for microfinance in Tanzania: essays on Regulation and Supervision. Bank of Tanzania

Sengupta U, Dezso D (2013) Keeping an edge: what will it take in the current microfinance context? SEEP Network report

Shadlen K (2002) Orphaned by democracy: small industry in contemporary Mexico. Comp Politics 35(1):43–62. https://doi.org/10.2307/4146927CrossRef

Singh SK, Gaur SS (2020) Corporate growth, sustainability, and business ethics in twenty first century. J Manage Governance 24:303–305CrossRef

Strauss AL, Corbin J (1998) Basics of qualitative research, 2nd edn. SAGE, New York

Sumila V (2014) Microfinance unguided. The Citizen. https://www.thecitizen.co.tz/News/Business/Microfinance--unguided-/1840434-2238610-116y2u3/index.html (accessed on 13th February 2022)

TAMFI – Tanzania Association of Microfinance Institutions (2017) Data collection project. Report on Tanzania Microfinance Institutions

Tenn S, McInerny P, McAllister P (2006) Building strong networks: an institutional strengthening guide for microfinance networks. SEEP Network

Titel: Governing professional microfinance associations: the Tanzanian case through the prism of institutional design
verfasst von: Tristan Caballero-Montes
Cécile Godfroid
Publikationsdatum: 17.05.2024
Verlag: Springer Berlin Heidelberg
Erschienen in: Review of Managerial Science
Print ISSN: 1863-6683
Elektronische ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-024-00767-9

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Premium Partner