Analysis Grid of Adjustment Strategies of Non-profit Organizations Benefiting From Microcredit to the Constraints of Microfinance Institutions: The Case of Burundi

Marie-Goreth Nduwayo and Michel Sayumwe

International Journal of Financial Research, 2018, vol. 9, issue 3, 86-97

Abstract: Based on the work of Henderson and Venkatraman (1993) on strategic alignment, the objective of this article is to explain that the strategic alignment of microcredit beneficiary not for profit Organizations (NPOs) is achieved through their adjustment to the constraints of their lessors. We thus discuss the adaptation of Burundian NPOs benefiting from microcredit by taking into account a specific attribute of a difficult economic environment: the threat of their survival. The physiological needs of their members are at the origin of their reactions of adaptation to the constraints of the lessor. This adaptation enables them to acquire and maintain the resources necessary for their survival. This article explains this adaptation by highlighting the strategic actions of the members of the NPOs who are beneficiaries of microcredit.

Keywords: not for profit organizations; adjustment strategies; microfinance institutions; microcredit; Burundi (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:9:y:2018:i:3:p:86-97

DOI: 10.5430/ijfr.v9n3p86

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