The impact of prosocial microlending on entrepreneurship in emerging economies: A cross-national natural experiment

Minxu Shen, Jason Chan, Yi Ding, Jin Chen

Research output: Chapter in Book/Conference proceedingConference contributionpeer-review

Abstract

Microfinance is deemed as a viable means to alleviate poverty through encouraging entrepreneurial activity. Recently, a new form of microfinance, namely prosocial microlending, is gaining popularity. Different from traditional for-profit microfinance, prosocial microlending is both financial and prosocial in nature. Despite its rapid expansion, there is a lack of understanding on whether and how this new form of microfinance affects entrepreneurship in emerging economies. In this study, we evaluate the impact of the introduction of the world's largest prosocial microlending platform (i.e., Kiva.org) into emerging economies on entrepreneurial activity. Using a cross-national research setting, our results show that the introduction of Kiva.org into emerging economies has a positive effect on entrepreneurial activity. More interestingly, this relationship is contingent on the socioeconomic development of countries (i.e., political, economic, and social institutions). Our study makes both theoretical and practical contributions to the understanding of microfinance, socioeconomic development, and entrepreneurship in emerging economies.

Original languageEnglish
Title of host publicationAmericas Conference on Information Systems 2018
Subtitle of host publicationDigital Disruption, AMCIS 2018
PublisherAssociation for Information Systems
ISBN (Print)9780996683166
Publication statusPublished - 2018
Externally publishedYes
Event24th Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018 - New Orleans, United States
Duration: 16 Aug 201818 Aug 2018

Publication series

NameAmericas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018

Conference

Conference24th Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018
Country/TerritoryUnited States
CityNew Orleans
Period16/08/1818/08/18

Keywords

  • Emerging economies
  • Entrepreneurship
  • Institution
  • Prosocial microlending
  • Socioeconomic development

ASJC Scopus subject areas

  • Information Systems

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