National Culture and Microfinance: Do the Cultural Dimensions Impact Microfinance Performance?

Proceedings of International Conference on Economics and Business Management 2019 (pp. 1-4). Cairo, Egypt

4 Pages Posted: 31 Jan 2019

See all articles by Mohammad Zainuddin

Mohammad Zainuddin

Australian National University (ANU)

Ida Md. Yasin

Putra Business School, Universiti Putra Malaysia

Ishtiaque Arif

Putra Business School

Abu Bakar Abdul Hamid

University Putra Malaysia

Date Written: January 2019

Abstract

Microfinance sector is highly international and culturally diverse. While an increasing body of literature examines the relationship of national culture with the country’s economic performance, innovation performance and firm performance, research on the influence of national culture on the performance of microfinance institutions (MFIs) is rather sparse. Microborrowers’ entrepreneurial ability, risk-taking attitudes, attitudes towards the role of women, trustworthiness may all be shaped by a country’s cultural dimensions which, in turn, may influence the success of microfinance program. However, despite microfinance’s deep embeddedness in cultural contexts, international difference in microfinance remains largely an understudied area. This study underscores the importance of cultural effects on microfinance financial and social performance. It gives a brief review of the scant research that deals with the impact of national culture on MFI performance. The paper improves our understanding of the interplay between microfinance organizations and the national culture where MFIs are located, and why the levels of success of MFIs vary across countries.

Keywords: Microfinance, National Culture, Hofstede Dimensions

JEL Classification: G21, Z10

Suggested Citation

Zainuddin, Mohammad and Yasin, Ida Md. and Arif, Ishtiaque and Abdul Hamid, Abu Bakar, National Culture and Microfinance: Do the Cultural Dimensions Impact Microfinance Performance? (January 2019). Proceedings of International Conference on Economics and Business Management 2019 (pp. 1-4). Cairo, Egypt, Available at SSRN: https://ssrn.com/abstract=3319011

Mohammad Zainuddin (Contact Author)

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Ida Md. Yasin

Putra Business School, Universiti Putra Malaysia

43400 UPM Serdang
Selangor
Malaysia

HOME PAGE: http://putrabusinessschool.edu.my

Ishtiaque Arif

Putra Business School ( email )

Selangor Darul Ehsan
Serdang 43400
Malaysia

Abu Bakar Abdul Hamid

University Putra Malaysia ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

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