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.