Micro-finance agencies and SMEs: model of explication of tacit knowledge Online publication date: Tue, 03-Aug-2010
by Patricia A. Rowe, Michael J. Christie, Frank Hoy
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 11, No. 1, 2010
Abstract: This paper contributes to a new area of research, namely: institutional preparedness of economic development agencies for developing small and medium-sized enterprises (SMEs). The cases presented illustrate variations in the micro-finance lender agency-enterprise development of processes for sharing vision and interdependence. In clarifying the nature of the agency-enterprise relationship along these two dimensions, we develop a set of propositions. Our model contends: 1) that effective processes for sharing vision and good cooperation maximise the likelihood of explication of tacit knowledge; 2) that ineffective processes for sharing vision and good cooperation lead to ad hoc explication of tacit knowledge; 3) ineffective processes for sharing vision and poor cooperation minimise the likelihood of explication of tacit knowledge; 4) effective processes for sharing vision and poor cooperation maximise the likelihood of explication of tacit knowledge.
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