Morgan Stanley's Approach to Assessing Credit Risks in the Microfinance Industry

Growing investor interest in microfinance combined with strong demand from microfinance institutions (MFIs) for capital have caused the financial industry and rating agencies to seek more reliable and precise methods for assessing the risks of MFIs. Drawing on the work of various industry leaders as well as its own experience, Morgan Stanley's Microfinance Institutions Group has created a comprehensive internal credit analysis and rating methodology—one that, by producing global (foreign and local currency) scale ratings, enables its analysts to assess and compare risks both within the growing microfinance sector and relative to other sectors.     

Context-general and Context-specific Determinants of Online Satisfaction and Loyalty for Commerce and Content Sites

We use the context-general and context-specific factor approach to examine the generalizability of satisfaction and loyalty models across two disparate online contexts—online retailing and content site browsing. Our conceptual models include the moderating effects of user-characteristic Web expertise, besides main effects of Web site factors and Web expertise. Results indicate that satisfaction and loyalty judgments are sensitive to both context-general and context-specific determinants, as well as to some interactions between them. Among context-general determinants, ease of use and customer service are positively related to satisfaction, Web community to loyalty, and Web expertise to both satisfaction and loyalty. Flow, a context-specific determinant, has a significant positive effect on satisfaction alone; security affects loyalty alone; and fulfillment/reliability and information quality are significant predictors of both satisfaction and loyalty. The results show that Web expertise moderates the effect of ease of use on satisfaction. The study contributes to marketing theory and practice by identifying satisfaction and loyalty mechanisms that are potentially generalizable across the two online contexts and providing a guiding framework for simultaneous consideration of context-specific and context-general factors in future research.     

Revenue-sharing contracts across an extended supply chain

Revenue-sharing contracts have been heavily researched and promoted in the academic literature. However, despite some well-documented examples (e.g., the way Blockbuster and film studios were able to increase availability of the latest video releases in rental shops through a revenue-sharing contract), they seem to be much less prevalent in practice. A possible reason for this gap between theory and practice is that most academic research has focused on two-party contracts involving only one buyer and one supplier, while in reality, most supply chains consist of multiple stages. When there are several stages in the chain—as is the case for many extended, global supply chains—the traditional revenue-sharing contract is no longer optimal for the two contracting parties, as every other participant in the chain is able to leverage the revenue-sharing contract to its own advantage. Put another way, a revenue-sharing contract between only two parties is not incentive-compatible across all participants. Accordingly, we suggest that a revenue-sharing contract should involve all the supply chain partners, and propose a spanning revenue-sharing contract that accomplishes coordination and incentive-compatibility across the same.     

Implementation of Social Innovations in Subsistence Marketplaces: A Facilitated Institutional Change Process Model

Implementation of social innovations in subsistence marketplaces often fails as a result of not bringing about institutional change. In this article, we study the process through which social enterprises facilitate local communities in effecting the process of institutional change as they introduce social innovations. Analyzing rich ethnographic data from 19 social enterprises, we develop the process of “facilitated institutional work” for implementing social innovation. We present a process model for implementing social innovation with four distinct stages involving social enterprises—(1) legitimating themselves within local communities, (2) disrupting aspects of the local institutional environment, (3) helping re‐envision institutional norms or practices, and (4) resourcing the institutional change process. The four stages relate to important concerns that local communities have in working with social enterprises implementing social innovations. These community‐level concerns revolve around the following questions: (1) Why should we allow an external social enterprise to be involved in our affairs? (2) Why do we need to change? (3) What should we change and what should we sustain? and (4) What role should we play in implementing change (such as in mobilizing resources)? This article demonstrates that bringing about institutional change is often necessary for implementing social innovations in subsistence marketplaces. The findings depict a participatory approach in which social enterprises work with local communities to bring about the institutional conditions necessary for implementing social innovation.     

Strengthening organizational ambidexterity with top management team mechanisms and processes

Abstract

Organizational ambidexterity is the organizational capability to simultaneously pursue explorative and exploitative innovation strategies. Studies have examined the Top Management Team (TMT) actions and decisions with the ambidextrous orientation of a firm. Further, studies have also shown that a behaviourally integrated TMT is positively associated with organizational ambidexterity. However, there has been limited research examining the antecedents to the behaviourally integrated TMT. Anchored in the upper echelons perspective, we have examined the influence of TMT processes and mechanisms on organizational ambidexterity. The TMT is observed to positively influence ambidexterity by enhancing the firm’s ability to meet the differentiation-integration challenges, and by facilitating the effective deployment of ambidextrous Human Resource (HR) architectures for employee learning. Thereby, this investigation examines the effect of TMT processes and mechanisms in enabling structural as well as contextual ambidexterity. The results from a sample of 78 hi-tech Small and Medium Enterprises (SMEs) across different industries were analysed using partial least squares structural equation modelling. We find the mediating role of TMT behavioural integration in the effect of TMT connectedness and TMT cross-functional interfacing mechanisms on organizational ambidexterity. However, our results show that rewards contingent on organizational performance do not motivate the TMT members to facilitate organizational ambidexterity. The results from this study lend support to the upper echelons perspective and add to two distinct streams of literature namely organizational ambidexterity and behavioural integration.     

Book briefs

Agricultural mechanization and the evolution of farming systems in Sub‐Saharan Africa, World Bank publication, John Hopkins University Press, Baltimore and Lon‐don, 1987

Livestock development in Latin America, World Bank publication. 1986

Liberty, Market and State: Political economy in the 1980s, Wheatsheaf Books, Brighton, 1986

Law, custom and social order: The colonial experience in Malawi and Zambia, Cambridge University Press, Cambridge. 1985     

农业增长和经济发展:全球化视角的观点

本文重新考察了农业部门增长对经济全面发展的贡献这一古老命题，并试图探讨在一个日益全球化的世界中，这一命题是否依然有效。有足够的经验证据支持这一命题。实际上，除了一些城市型国家的经济发展没有强劲的农业增长外，很难再找出其他什么例外。然而，有很多国家既没有见到其农业增长，也没有见到其经济发展。即使在那些农业增长显著的国家，国内也存在巨大的地区差异。本文同时研究了促进或限制农业转型的因素。全球化进程及其引致的农业食品体系变革，是为农业主导的增长提供了新的机会？还是使得那些受排斥的国家、地区或群体被进一步的边缘化？本文还研究了导致这种被排斥的因素，包括全球化力量和国内政策与治理方面的弱点。最后，本文探讨了降低农业体系转型成本的政策措施，包括向那些落后的国家、地区或群体提供安全保障体系等。     

Is research on marginal lands catching up? The case of unfavourable wheat growing environments⋆

It is widely believed that the Green Revolution had very little effect in unfavourable or marginal environments. Many researchers have been concerned about the slow progress of technical change in marginal environments and the level of research resources allocated to these areas. This paper provides empirical evidence that there has been significant growth in wheat yield potential in marginal environments, especially during the post‐Green Revolution. International yield trial data, covering all major wheat growing environments from 1964 to 1999, were used in estimating the growth in wheat yield potential and changes in yield variability. The global database on wheat varietal adoption and yield gains based on estimated wheat yield growth rates were used to determine production increases due to wheat breeding research. Results show greater progress in shifting the wheat yield frontier in marginal areas, particularly in drought and high temperature environments. Furthermore, yield variability in marginal environments has notably declined, while it has increased slightly in favourable environments. While initial gains came from crossover of varieties from favourable environments, targeted breeding efforts have contributed significantly to more recent productivity growth in marginal environments. Increased production from marginal environments accounted for around 25% of the total wheat production increase in 1997. These findings show greater progress in wheat research and the huge potential of improving wheat productivity in unfavourable environments.