On the Social and Financial Effects of the Transformation of Microfinance NGOs

This article examines the social and financial performance of an international sample of non-governmental organizations (NGOs) which transformed into microfinance institutions (TMFI). It shows that recent calls for the transformation of NGOs into TMFIs help improve the financial sustainability and the breadth of outreach of microfinance activities. However, this transformation hinders the depth of the services provided by TMFIs. This is especially significant in the case of bank-TMFIs and suggests that although the transformation might increase the financial independence of TMFIs, it might cause a mission drift that both NGOs and policy-makers ought to consider.     

Doing Well by Returning to the Origin. Mission Drift,Outreach and Financial Performance of Microfinance Institutions

The majority of studies discussed the existence of a trade-off between financial performance and outreach, pointing out those MFIs that look for higher profits lead to lower outreach. Another stream of research discussed the phenomena of mission drift, which see MFIs leave from their social mission, which is to provide micro financial services to break the cycle of poverty by reducing financial exclusion and move away from the traditional microcredit business model by three different ways. The paper contribute to the debate focussing the impact of mission drift phenomena on both financial performance and outreach of MFIs. This paper uses a dataset of 194 microfinance institutions (MFIs), 788 annual ratings from 2001 to 2010, collected by MicroFinanza Rating, an international MFIs’ rating agency, to study and test three hypotheses on the relationship between mission drift, financial performance and outreach of MFIs. Data analysed with mixed effect regressions shows that a trade-off exist between financial performance and outreach. Results show that mission drift positively impacts on financial performance but it reduces outreach. MFIs should be encouraged to clearly define if their main aim is to assure remuneration of shareholders or if they want to contribute to the outreach of poor.     

Nonprofit mission statement focus and financial performance

Mission statements have been adopted nearly universally in nonprofit organizations. Their ubiquity is based on a presumption that a well‐designed mission statement is linked to better organizational performance because it provides a framework for decision making, influence over staff and volunteer motivation, and a mechanism for signaling organizational legitimacy to stakeholders. Despite collective confidence in mission statement utility, the relationship between mission statements and performance has received minimal attention. In this exploratory study we measured several attributes of mission statements in women's rights nonprofit organizations, with particular attention to the degree to which the statement focuses on organizational purpose and the relationship between focus and several measures of organization financial performance. The findings indicated that mission statements with a more focused geographic scope were associated with lower overhead ratios. In contrast, mission statements that identified more target client groups were associated with larger one‐year increases in contribution. Despite the statistical significance, the relationships were weak, calling into question common assumptions about the importance of the mission statement to a nonprofit organization.     

A mission beyond journalism: advocacy and media practices of award giving in China

Chinese media organizations do not yet have an established and widely adopted journalistic paradigm. Thus, some journalists believe they should go beyond journalism's conventional roles and participate directly in social advocacy. They practice not only advocacy journalism but also social advocacy by hosting public forums, organizing journalism training camps, and giving various awards to social activists, cultural elites, celebrities, business people, and fellow journalists. This research explores the award-giving practices of several influential Chinese media organizations. It contends that a complex array of forces and factors interact to shape the award-giving practices of contemporary Chinese media. In contemporary China, the marketized and mission-burdened media tend to use the award-giving practice as a means to build their brand image and fulfill their social mission (i.e. advocacy of values). Award giving is also intended to help media organizations network with like-minded representatives of civil society. This analysis thus demonstrates that award-giving practices help build mutual recognition between the media and a specific group of social elites in China and lead to the formation of an alliance of “the weak” when confronting the authoritarian state machine.     

Accessibility to micro-finance services by people with disabilities in Bushenyi District,Uganda

The Poverty Reduction Strategy of the Ugandan Government identified provision of microfinance as one of its interventions. Despite the known connection between poverty and people with disabilities, it remains unclear to what extent this intervention includes or accommodates them. This study seeks to gain a better understanding of how people with physical and sensory disabilities access existing microfinance services in the Bushenyi District of Uganda. Qualitative and quantitative methodologies are used. The findings suggest that people with disabilities are not necessarily denied access to microfinance if they meet the desired requirements. These relate to adequate savings or collateral and perceived trustworthiness. These are seen to be key determinants of success and can be linked to impaired functioning relating to limited mobility, distance, poorer access to information and disabled people’s own negative attitudes. Increasing access and utilization of microfinance services by people with disabilities requires formulation of financial policies that accord them special consideration. At the same time, improvement is needed in the knowledge, attitudes and skills of the people with disabilities themselves and also microfinance providers.     

From Boom to Bust: How Different Has Microfinance Been from Traditional Banking?

This article presents in‐depth analysis of developments in the microfinance sector before and after the collapse of Lehman Brothers in 2008, by comparing them with developments in the traditional banking sectors of emerging markets and developing countries. Its findings indicate that microfinance has been part of the same credit boom observed in the traditional banking sector, and that the boom was also fostered by substantial inflows of foreign capital. Further, that risks associated with credit booms in the traditional sector also evolved in the microfinance sector. The article comes to the conclusion that, by becoming part of the global financial system, microfinance has lost one of the characteristics distinguishing it from traditional banking, namely, its greater resilience to crises in domestic and global financial markets.     

Integrating normative values and/in value creation: A strategic management decision aid tool for social enterprises' values practices

Normative values are one of the most central motives for the creation of nonprofits and social enterprises. Nevertheless, their actual role in the management of these organizations has been little explored. Furthermore, the social enterprise literature has typically approached the concept of value from a value creation perspective. This paper looks at the role played by normative values in the strategic management decisions of a nonprofit social enterprise and unpacks the dynamics between the enactment of these values and the creation of social and economic value. In terms of practical implications, this research allows for proposal of a value‐based, strategic management decision aid tool that emerged from the in‐depth, longitudinal study of a work integration social enterprise. Our findings suggest that the enactment of normative values can actually feed in economic value creation, which, in turn, allows for strengthened respect of the normative values, thus generating virtuous cycles that ultimately help the organization to find a coherence between its social mission and market.     

Surviving mission drift: How charities can turn dependence on government contract funding to their own advantage

The widespread contracting out to British charities of welfare services previously furnished by the state has resulted in many charities operating in fields well outside those specified by their original missions. Challenges connected with charity mission drift have received a great deal of (mainly negative and critical) attention in the nonprofit practitioner literature in recent years, yet no academic research has been completed into exactly how charities respond managerially and operationally to government‐induced mission drift. This empirical study attempted to fill this important gap in knowledge about charity management through in‐depth case studies of three charities known to have experienced substantial mission drift during the last decade, focusing on the styles and types of approach the organizations had adopted in their dealings with government funding agencies. It emerged that the three charities accepted mission drift as a fact of life. Rather than simply supplying contract services to government bodies, the charities were highly proactive in seeking to initiate, direct, control, and assume overall strategic responsibility for state‐funded activities.     

Accessibility and clarity of state child welfare agency mission statements

The authors reviewed 40 mission statements guiding U.S. public child welfare practice for accessibility, clarity, and values. Nine of the 40 state-administered child welfare agencies had not posted their missions on the Web as of October 2002, and 30 mission statements required a 12th-grade or college reading level for easy comprehension. The mission statements most often expressed the goals, values, and processes of safety, permanence, well-being, family preservation, cultural competence, self-sufficiency, and partnership. Mission statements can be an important tool for improving child welfare outcomes by providing direction; therefore, agency administrators should consider how clear and accessible their state agency mission statements are.     

The microfinance promise—can it be kept? A macro perspective

After five decades of rapid expansion of microfinance worldwide, little is known about its aggregate effects and whether the “microfinance promise” of poverty reduction holds at the macro level. Challenging questions have arisen. Here we explore the dynamic response of microfinance on economic growth, financial deepening and income inequality. Countries are grouped into three broad clusters (stable, moderate and poor) based on macro‐institutional variables. Our results show that microfinance has a significant long‐term ability to affect the broader economy. However, the impact and dynamics of microfinance differ substantially across macro‐institutional environments. It grows in weaker environments, reaches its peak in developing economies, and then gradually “dies out” in more stable economies. While there is evidence of a positive impact of microfinance at the aggregate level, the response is different depending on whether countries are poor, moderately developed or economically stable. Once countries climb up the macro‐institutional “ladder,” microfinance can take a different shape and its relationship with other macroeconomic fundamentals can change. Our results indicate that microfinance has the strongest effect when the external environment is supportive and proactive; in weak environments, microfinance cannot grow sufficiently. Therefore, more attention should be given to supporting the socioeconomic dimensions of economies.     

Women’s microfinance participation and HIV literacy in Bangladesh: results from a nationally representative study

ABSTRACT

This study evaluated the association between microfinance participation and HIV literacy within a nationally representative sample of 3,614 married women aged 15–49 years from the Bangladesh Demographic and Health Survey, 2011. Using logistic regression, we assessed the relationship between microfinance participation and HIV literacy. Controlling for demographic factors such as wealth, age, and education, we found that microfinance participants were 30% more likely to be HIV literate, in comparison with women who did not participate in microfinance. These results suggest that microfinance is a cost-effective way to enhance HIV literacy for poor, less educated women in rural areas of Bangladesh.     

Staff characteristics and the exclusion of persons with disabilities: evidence from the microfinance industry in Uganda

This study uses survey data from the microfinance industry in Uganda to investigate whether there are differences among industry staff members in beliefs and views regarding persons with disabilities. For several of the questions, various staff sub-groups respond significantly differently. A recurring result is that staff members who have a relative with disabilities often express views that differ from the views of other staff members. Moreover, we find significant differences related to the age of the staff members. For instance, younger staff members are more positive and optimistic regarding the potential to reach more clients with disabilities. The employment position of the individual staff member also appears to be relevant: credit officers are relatively more likely (than other staff types) to indicate that discrimination could be a problem in the microfinance industry. Interestingly, we do not observe any differences in views and beliefs that are related to staff member gender.     

Is theory development essential for the social work dissertation?

Grounded theory methodology (GTM) is a popular methodology used in social work dissertation research. GTM entails the development of theory ‘grounded in’ and generated from data systematically gathered and analyzed through qualitative methods. But little is known of its theory development and relationship to social work education at the doctoral level. In this article, we reflect on contemporary usage of GTM with respect to the state of theory development in social work education by reviewing a sample of Canadian social work doctoral dissertations that utilize GTM, identifying if and how theory was developed. Our analysis draws from a broader review of GTM research published as social work doctoral dissertations in Canada using the Qualitative Research Quality Checklist (QRQC). The findings indicate that almost half of the dissertations in the sample did not contribute to theory development, and for many, theory development was not the intention. This raises a question about whether theory development when utilizing GTM is essential in social work dissertation research, and perhaps, whether the focus should be on exploring a social work issue rather than generating theory. The paper concludes with considerations for social work educators in regards to research methodology, epistemology, and theory.     

Toward a Sociology of Criminological Theory

It is a truism to remind ourselves that scientific theory is a human product subject to many of the same social processes that govern other social acts. Science, however, whether social or natural, pretends to claim a higher mission, a more sophisticated methodology, and more consequential and reliable outcomes than human efforts arising from other spheres. The present paper examines the propagation, ascension, acceptance, and demise of twentieth century criminological theories in the United States. Data from publications in peer reviewed journals over the last 30 years suggest that several non-scientific factors are most influential in determining which theories are tested, cited, and discussed in criminological circles.     

Leading a Large‐Scale Distributed Social Enterprise

Distributed social enterprises with national or international footprints face unique management challenges. To cast a lens on these challenges, we analyze the case of the US‐based social enterprise Goodwill Industries, a century‐old, hybrid nonprofit organization with annual business‐related revenue of more than $5.5 billion. The economic benefits that accrue from this business are used to support a social mission that has continued to evolve for more than 100 years. We explore how Goodwill is organized and how its management works to continually balance economic and social objectives to facilitate long‐term success.     

From Urban to Rural: Lessons for Microfinance from Argentina

The recent success of microfinance for the urban self‐employed contrasts with decades of failure on the part of public development banks for small farmers. This article describes the ways in which rural microfinance organisations have tried to adapt the lessons of urban microfinance to manage the risks and control the costs of the supply of financial services in rural areas. It then asks whether the lessons of urban microfinance are likely to apply in the poorest rural areas of Argentina. The article concludes that microfinance is unlikely to improve access to small loans and small deposits for many of the rural poor in Argentina; distances are too great, farmers too specialised, and wages too high. Improved access depends not on targeting loans by government decree but on strengthening institutions that support financial markets.     

Is peer regulation perceived as an effective mediator to strengthen the mission orientation of INGO leaders?

International non-governmental organizations (INGOs) operate in competitive funding markets and face political pressures, which can incentivize their leaders to compromise their mission-oriented strategy for more resource security. This article empirically investigates whether INGO leaders perceive peer regulation as an effective governance mechanism that allows them to strengthen their mission-oriented strategy to withstand these economic and political constraints. In particular, we assess whether peer regulation is perceived to promote organizational learning processes. We test a partial least squares structural equation model (PLS-SEM) based on a unique data set from an international survey among 201 INGO leaders from 21 countries. Our findings suggest that INGO leaders indeed perceive that peer regulation strengthens their mission orientation, despite the economic competition and political opportunity constraints their organization faces. This effect is partially mediated by organizational learning processes. Our findings are based on a constructivist perspective that emphasizes the learneffect of peer regulation on INGOs' strategic orientation, and allows the derivation of several managerial recommendations to foster INGOs' strategic autonomy.     

伊斯兰文化的金融约束与微型金融发展

本文利用文化维度理论,剖析了伊斯兰地区的人文特征,深入研究了伊斯兰文化的金融约束及当地微型金融服务的现实需求与人文嵌入方式。伊斯兰文化具有权利差距小、不确定性规避强、集体主义、阴柔气质以及长期取向等五大特征;伊斯兰文化对微型金融服务具有强力的约束效应,不但反对高利贷和利率,而且强调借贷双方的道德准则;伊斯兰微型金融服务通过成本加融资、利润共享及慈善贷款三种方式融入伊斯兰社区,因展现出形式灵活、运作高效等优越性而普受欢迎;微型金融服务与社区人文环境的有效交融是伊斯兰微型金融取得成功的关键之处。     

What is the Point of Change? Change Point Detection in Relational Event Models

This paper presents an extension to the relational event model with change points (REM-CP) to study abrupt changes to social interaction behavior in temporal networks. A change point detection algorithm is proposed for exploring when and which network effects abruptly change, and a confirmatory approach to test the presence of a change point at a given moment. The effectiveness of the methodology was assessed with numerical simulations and NASA’s Apollo 13 mission data. The latter revealed dynamic communication behavior and identified time zones where most change points occurred, including around the time of the famous quote “Houston, we’ve had a problem.”     

Employment and basic needs: lessons of a mission to Portugal

The task of the International Labour Organization (ILO) mission that visited Portugal in 1977 differed in several respects from that of earlier missions undertaken in the framework of the World Employment Programme: 1) with a per capita consumption of U.S. $1000 a year, Portugal is far better off than the other countries to which ILO missions were sent; 2) following the Revolution of April 25, 1974, Portugal had already adopted many of the recommendations such as those concerning income redistribution and land reform contained in the reports of earlier ILO missions; and 3) as a consequence of the above, the ILO mission to Portugal was not asked to produce a report and make recommendations, but to participate directly in the drafting of the 1977-80 Plan through a joint Portuguese-ILO Working Group. The present article draws both on the report of the Working Group and on subsequent research. Open unemployment is a recent phenomenon in Portugal, and the objective of the Medium-Term Plan is to improve basic-needs satisfaction and reduce unemployment. It can be reasonably assumed that the increased activity of the agricultural sector, together with continued north-south migration, will absorb much of the existing underemployment. Concerning industry, the reorientation of industrial growth towards the requirements of a basic-needs strategy and more employment-intensive production represents a considerable change from past strategies and policies. Concerning the basic-needs approach as a development strategy, it is useful to show that such a strategy remains compatible with the pursuit of more traditional objectives, such as sustained growth, full employment, balance-of-payments equilibrium, equitable income distribution, and harmonious regional development.