Title: Micro-finance agencies and SMEs: model of explication of tacit knowledge

Authors: Patricia A. Rowe, Michael J. Christie, Frank Hoy

Addresses: UQ Business School, The University of Queensland, St. Lucia, Qld, 4072, Australia. ' Division of Research, Southern Cross University, Lismore, NSW, 2480, Australia. ' Worcester Polytechnic, Worcester, Mass, 01609-2280, USA

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.

Keywords: microfinance; microcredit; tacit knowledge; interdependence; shared visions; institutional preparedness; economic development agencies; lenders; loans; cooperation; explication; small and medium-sized enterprises; SMEs; entrepreneurship; finance.

DOI: 10.1504/IJESB.2010.034432

International Journal of Entrepreneurship and Small Business, 2010 Vol.11 No.1, pp.55 - 73

Published online: 03 Aug 2010 *

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