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How Does National Culture Influence Microfinance Institutions?: Evidence Based on Investigating 45 Countries
Abstract
Many studies deal with the determinants of countries' culture or efficiency of microfinance institutions (MFIs). This chapter aims to fill the gap in the literature by analyzing the connection between national cultural features and indicators of countries' MFIs. The summary of analyses made regarding MFIs is followed by the national cultural dimensions, and how knowledge strategy could serve poverty reduction. Forty-five countries represent the subject of the research. Their statistics are available for both MFIs and national culture. Rank correlation and investigation of TOP5 countries show that the MFIs are successful in countries characterized by high levels of power distance, collectivistic, long-term-oriented and restraint culture. Based on these results, the chapter lists countries where MFIs could be successfully introduced based on their national cultural features and recommends certain knowledge strategies for effective operation. Finally, research directions as a continuation of this study are also presented.
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