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The innovation necessity: Evidence from microcredit in the Dominican Republic
Author(s) -
Bradley Steven W.,
Artz Kendall,
Hulett Jimmy
Publication year - 2012
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1761
Subject(s) - microfinance , competitor analysis , loan , business , the republic , economics , marketing , economic growth , finance , philosophy , theology
This study examines the role of business innovation as an important, but understudied intervening relationship between microcredit loans and income level. Using archival and survey data of microcredit clients from the Dominican Republic, the study finds that loan size has a positive effect on income level, but only in the presence of business innovation. We find that greater business training in relation to competitors is a significant indicator of business innovation. The findings also suggest that personal characteristics and competitive environment play a joint, but opposite role with innovation in predicting income level. Copyright © 2010 John Wiley & Sons, Ltd.