The study by Thrikawala, Locke and Reddy (2013) specifically identified and prescribed
best corporate governance practices for MFIs. The practices were developed by using
multiple MFI outcomes for many years and with special reference to the social
performance for the poor. These practices were also designed with the understanding of
the nature of the relationship that exists between corporate governance and institutional
success that mainly focus on MFIs in developing countries. More specifically, the
practices identified in the study include; board diversity, board size, independent
directors, CEO/chairman duality, ownership type, corporate mission, internal and
external auditors, type of donors and regulatory and commercial environment.
Despite the importance of corporate governance practices to organizations such as MFIs,
these practices have not attracted much research and interest. In particular, research on
corporate governance practices in MFIs from the Nigerian perspective has been
neglected. The review of the past studies indicates previous research primarily
concentrated on examining corporate governance practices as adopted in other types of
organizations as well as in other developed and developing countries.
v. ICT Practices
Information, communication and technology (ICT) practices are considered not only
important to MFIs but also their organizational performance. As the microfinance
industry grows, ICT is being endorsed as an important tool to facilitate it expansion and
reach (Kauffman & Riggins, 2012). According to Serrano-Cinca and Gutiérrez-Nieto
(2014), as an important business practice, ICT adoption reduce the operating costs related
to the process of providing microcredit. The ICT practices are needed for managing a
large number of clients as well as to enable the organization reduce operating costs and
improving efficiency.
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- Summer '17
- Iking
- Management
