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/Report/Conference proceedingConference contribution

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 (US)
Title of host publicationAmericas Conference on Information Systems 2018
Subtitle of host publicationDigital Disruption, AMCIS 2018
PublisherAssociation for Information Systems
ISBN (Print)9780996683166
StatePublished - Jan 1 2018
Event24th Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018 - New Orleans, United States
Duration: Aug 16 2018Aug 18 2018

Publication series

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

Other

Other24th Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018
CountryUnited States
CityNew Orleans
Period8/16/188/18/18

Keywords

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

Fingerprint Dive into the research topics of 'The impact of prosocial microlending on entrepreneurship in emerging economies: A cross-national natural experiment'. Together they form a unique fingerprint.

  • Cite this

    Shen, M., Chan, J., Ding, Y., & Chen, J. (2018). The impact of prosocial microlending on entrepreneurship in emerging economies: A cross-national natural experiment. In Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018 (Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018). Association for Information Systems.