شواهدی از موسسات تأمین مالی خرد در کنیا
Abstract
Introduction
Method
Results
Discussion
Conclusion
Implications of the Study
Limitations and Suggestions for Future Research
References
Abstract
The study aimed at determining the influence of organizational culture on the performance of microfinance institutions in Kenya. A descriptive cross-sectional survey design was adopted. Secondary data were collected from annual reports by the Association of Microfinance Institutions in Kenya and the Microfinance Rating Africa. Primary data were collected using structured questionnaire targeting the chief executive officer, human resource manager, and marketing manager. Data were analyzed using factor analysis and hierarchical regression. Our analysis identifies clan and hierarchy as the dominant cultural typologies in the microfinance industry. The results obtained demonstrate that organizational culture has a significant influence on non market performance. In addition, market culture is inversely associated with debt/equity ratio. We conclude that organizational culture is a major source of sustainable competitive advantage in the microfinance industry. Furthermore, we conclude that market culture promotes financial independence and sustainability in the long term.
Introduction
Business firms operating in competitive markets are consistently under pressure to monitor and improve their performance with the goal of meeting the ever-increasing expectations of investors, employees, and customers. Microfinance institutions (MFIs) operate in competitive financial sector characterized by dominant and resourceendowed commercial banks and the member supported savings and credit cooperative societies that enjoy a large number of loyal clientele. Unlike their competitors, majority of MFIs rely on debt from established lenders to provide credit services to their customers. However, developing countries where majority of the MFIs are domiciled have stringent depositor protection regulations that constrain the bulk of nondeposit taking MFIs to mobilize funds from the public. Therefore, exceptional management of organizational resources to compete in the market is essential for the performance of MFIs. Performance relates to the results and outcomes the top management of the firm plans to achieve (Thompson, Strickland, & Gamble, 2008). The upper echelons of firms based in unpredictable and competitive industries spend most of their time and effort in search of answers to performance enhancement questions. The performance management challenge has equally attracted attention of researchers in management. Over the years, studies have attempted to explain how organizational performance can be managed by finding a strategic fit between the firm’s diverse range of resources and changes in the external environment. Organizational culture has been identified as an important intangible resource and a barrier to imitation with powerful effects on performance. Schein (1985) proposed that organizational culture serves the dual roles of adaptation to changes in the environment external to the firm and enabling internal integration. Colyer (2000) suggest that performance can be understood better by analyzing organizational culture as firms respond to changing circumstances based on their established culture.