Co-production in business training in microfinance institutions: a conceptual approach

Abstract

Recent developments in service literature highlight the importance of co-production between the firm and the client in order to create value. This paper presents a model of co-production within the context of microfinance provision and investigates the dyadic relationship between Trainers from microfinance institutions (MFIs) and the Owner Managers of micro and small enterprises (MSEs). The paper develops a model that identifies the factors that facilitate co-production between Trainers and Owner Managers. It also goes on to examine how these factors foster the outcomes that ensue for the businesses and MFIs concerned. The model offers researchers a framework for empirical studies in the microfinance setting. Furthermore, microfinance policy makers can use this model to formulate strategies that offer numerous benefits to both MFIs and Owner Managers.

The influence of trainees' characteristics on the transfer of entrepreneurship training: Evidence from microfinance institutions in Tanzania

“…The bulk of studies on education level and training show its positive influence, although there is some inconsistency in the results. Qualitative research conducted by Abeysekera et al (2017) found that the education of owner managers influenced their ability to follow the training. In Europe, the level of trainees' knowledge and skills was found to have a positive impact on entrepreneurship (Zamfir et al, 2018).…”

“…There is a growing consensus that entrepreneurship training offered to microentrepreneurs enables them to acquire knowledge, skills and attitudes (KSAs) that can be applied to improve clients' enterprise growth and sustainability (Gegenfurtner et al, 2020;Prediger & Gut, 2014). It is often argued that effective entrepreneurship training contributes considerably toward eliminating poverty by transforming the poor into successful microentrepreneurs (Abeysekera et al, 2017;Mihret Dessie & Shumetie Ademe, 2017). However, training initiatives face criticism of failure to enhance entrepreneurship in developing economies which exhibit enormous skill gaps (Awais Bhatti et al, 2013;Oware, 2020).…”