Lending Groups and Different Social Capitals in Developed and Developing Countries
Lending groups (LGs) and social capital are two central elements to the many microfinance solutions operating around the world. However, LG effectiveness in reducing transaction costs and lending risks for microfinance institutions (MFIs) is mediated by institutional environments. Starting from this...
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| Format: | Article |
| Language: | English |
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Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
2016-11-01
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| Series: | RAC: Revista de Administração Contemporânea |
| Subjects: | |
| Online Access: | http://www.anpad.org.br/periodicos/arq_pdf/a_1745.pdf |
| _version_ | 1797714150361661440 |
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| author | Diego A. B. Marconatto Luciano Barin-Cruz Eugenio Pedrozo |
| author_facet | Diego A. B. Marconatto Luciano Barin-Cruz Eugenio Pedrozo |
| author_sort | Diego A. B. Marconatto |
| collection | DOAJ |
| description | Lending groups (LGs) and social capital are two central elements to the many microfinance solutions operating around the world. However, LG effectiveness in reducing transaction costs and lending risks for microfinance institutions (MFIs) is mediated by institutional environments. Starting from this assumption, we discuss the existent interactions between the institutional environments of developed (Anglo-Saxon and communitarian) and developing countries with different stocks of social capital (individual, network and institutional) and the influences of this interaction on LG effectiveness. In order to do so, we applied the institutional perspective of O. Williamson to build a theoretical framework to examine the interaction of all these conditions, allowing for analysis of their main relations within the microfinance context. Based on this framework, we propose on the one hand that in developing and Anglo-Saxon developed nations, stocks of both individual and network social capital are the most important for an LG’s effectiveness. However, in Anglo-Saxon countries, these two stocks of social capital are complemented by formal contracting devices. In communitarian developed countries, on the other hand, the stocks of institutional social capital have a stronger positive impact on LG dynamics. |
| first_indexed | 2024-03-12T07:47:40Z |
| format | Article |
| id | doaj.art-491401d0828d4a96b722165ddd70cf64 |
| institution | Directory Open Access Journal |
| issn | 1982-7849 |
| language | English |
| last_indexed | 2024-03-12T07:47:40Z |
| publishDate | 2016-11-01 |
| publisher | Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) |
| record_format | Article |
| series | RAC: Revista de Administração Contemporânea |
| spelling | doaj.art-491401d0828d4a96b722165ddd70cf642023-09-02T20:49:49ZengAssociação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)RAC: Revista de Administração Contemporânea1982-78492016-11-0120665167210.1590/1982-7849rac2016150050Lending Groups and Different Social Capitals in Developed and Developing CountriesDiego A. B. Marconatto0Luciano Barin-Cruz1Eugenio Pedrozo2Universidade do Vale do Rio dos SinosHEC MontréalUniversidade Federal do Rio Grande do SulLending groups (LGs) and social capital are two central elements to the many microfinance solutions operating around the world. However, LG effectiveness in reducing transaction costs and lending risks for microfinance institutions (MFIs) is mediated by institutional environments. Starting from this assumption, we discuss the existent interactions between the institutional environments of developed (Anglo-Saxon and communitarian) and developing countries with different stocks of social capital (individual, network and institutional) and the influences of this interaction on LG effectiveness. In order to do so, we applied the institutional perspective of O. Williamson to build a theoretical framework to examine the interaction of all these conditions, allowing for analysis of their main relations within the microfinance context. Based on this framework, we propose on the one hand that in developing and Anglo-Saxon developed nations, stocks of both individual and network social capital are the most important for an LG’s effectiveness. However, in Anglo-Saxon countries, these two stocks of social capital are complemented by formal contracting devices. In communitarian developed countries, on the other hand, the stocks of institutional social capital have a stronger positive impact on LG dynamics.http://www.anpad.org.br/periodicos/arq_pdf/a_1745.pdfmicrofinance; lending groups; social capital; institutional environment. |
| spellingShingle | Diego A. B. Marconatto Luciano Barin-Cruz Eugenio Pedrozo Lending Groups and Different Social Capitals in Developed and Developing Countries RAC: Revista de Administração Contemporânea microfinance; lending groups; social capital; institutional environment. |
| title | Lending Groups and Different Social Capitals in Developed and Developing Countries |
| title_full | Lending Groups and Different Social Capitals in Developed and Developing Countries |
| title_fullStr | Lending Groups and Different Social Capitals in Developed and Developing Countries |
| title_full_unstemmed | Lending Groups and Different Social Capitals in Developed and Developing Countries |
| title_short | Lending Groups and Different Social Capitals in Developed and Developing Countries |
| title_sort | lending groups and different social capitals in developed and developing countries |
| topic | microfinance; lending groups; social capital; institutional environment. |
| url | http://www.anpad.org.br/periodicos/arq_pdf/a_1745.pdf |
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