This paper examines the effect of training and capacity building on reciprocity in microfinance institutions (MFI). Borrower loyalty requirements in MFI go beyond financial incentives and capacity building helps in skilling borrowers and securing borrower loyalty. The study proposes training expenditures as a determinant of reciprocity. Using an unbalanced panel data of 211 Indian MFIs, we proxy training expenditures by cost per loan and training services are approximated by offices and borrower per staff member. The paper shows that training expenditure has a positive and significant effect on reciprocity, measured in terms of borrower retention and deposit to loan ratio. We also show the interrelationship between training expenditures and performance measures. Our paper contributes to practice by identifying the positive role of training expenditures in securing borrower loyalty and increase in outreach which, in turn, helps to improve performance of MFIs.

Abdulai, A. and Tewari, D.D. (2016) ‘Efficiency of microfinance institutions in sub-Saharan Africa: a stochastic frontier approach’, Ghana Journal of Development Studies 13(2): 117–39 <http://dx.doi.org/10.4314/gjds.v13i2.7>.

Abdulai, A. and Tewari, D.D. (2017) ‘Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa’, Enterprise Development and Microfinance 28(3): 162–81 <https://doi.org/10.3362/1755-1986.16-00014>.

Aboagye, A.Q. and Otieku, J. (2010) ‘Are Ghanaian MFIs’ performance associated with corporate governance?’ Corporate Governance: The International Journal of Business in Society 10(3): 307–20 <https://doi.org/10.1108/14720701011051938>.

Adams, D.W. and Vogel, R.C. (2016) ‘Microfinance dreams’, Enterprise Development and Microfinance 27(2): 142–54 <https://doi.org:10.3362/1755-1986.2016.010>.

Adhikary, S. and Papachristou, G. (2014) ‘Is there a trade-off between financial performance and outreach in South Asian microfinance institutions?’ Journal of Developing Areas 48(4): 381–402 <http://doi.org/10.1353/jda.2014.0081>.

Ahmed, S.M. (2009) ‘Capability development among the ultra-poor in Bangladesh: a case study’, Journal of Health, Population, and Nutrition 27(4): 528–35 <http://doi.org/10.3329/jhpn.v27i4.3399>.

Akgunduz, Y. and Sanli, S.C. (2017) ‘The effect of employee advocacy and perceived organizational support on job embeddedness and turnover intention in hotels’, Journal of Hospitality and Tourism Management 31: 118–25 <https://doi.org/10.1016/j.jhtm.2016.12.002>.

Alvord, S.H., Brown, L.D. and Letts, C.W. (2004) ‘Social entrepreneurship and societal transformation: an exploratory study’, Journal of Applied Behavioral Science 40(3): 260–82 <https://doi.org/10.1177/0021886304266847>.

Austin, J., Stevenson, H. and Wei-Skillern, J. (2006) ‘Social and commercial entrepreneurship: same, different, or both?’ Entrepreneurship Theory and Practice 30(1): 1–22 <https://doi.org/10.5700/rausp1055>.

Ayayi, A.G. and Sene, M. (2010) ‘What drives microfinance institution’s financial sustainability’, Journal of Developing Areas 44(1): 303–24 <http://doi.org/10.1353/jda.0.0093>.

Bassem, B.S. (2009) ‘Governance and performance of microfinance institutions in Mediterranean countries’, Journal of Business Economics and Management 10(1): 31–43 <10.3846/1611-1699.2009.10.31-43>.

Besley, T. (1995) ‘Savings, credit and insurance’, in D. Rodrik and M.R. Rosenzweig (eds), Handbook of Development Economics, pp. 2123–207, Oxford: Elsevier.

Charitonenko, S. and Campion, A. (2003) ‘Expanding commercial microfinance in rural areas: constraints and opportunities’, in Paving the Way Forward: An International Conference on Best Practice on Rural Finance (Vol. 2), Washington, DC.

Copestake, J. (2000) ‘Integrating impact monitoring and assessment of microfinance’, Development in Practice 10(5): 705–11 <http://dx.doi.org/10.1080/09614520050195580>.

Cornée, S. and Szafarz, A. (2014) ‘Vive la différence: social banks and reciprocity in the credit market’, Journal of Business Ethics 125(3): 361–80 <https://doi.org/10.1007/s10551-013-1922-9>.

Cornée, S., Masclet, D. and Thenet, G. (2009) ‘Long-term relationship and reciprocity in credit market experiment: implications for microfinance’, In Congrès AFFI 2009, pp. 1–36.

Dehejia, R., Montgomery, H. and Morduch, J. (2012) ‘Do interest rates matter? Credit demand in the Dhaka slums’, Journal of Development Economics 97(2): 437–49 <https://doi.org/10.1016/j.jdeveco.2011.06.001>.

Frederick, F.R. and Thomas, T.E.A.L. (1996) The Loyalty Effect: The Hidden Force behind Growth, Profits, and Lasting Value, Boston, MA: Harvard Business School Press.

Gouldner, A.W. (1960) ‘The norm of reciprocity: a preliminary statement’, American Sociological Review 25(2): 161–78 <http://dx.doi.org/10.2307/2092623>.

Henry, S. (2006) Good Practice in Business Development Services: How Do We Enhance Entrepreneurial Skills in MFI Clients, Toronto: Alterna Savings.

Hoppner, J.J. and Griffith, D.A. (2011) ‘The role of reciprocity in clarifying the performance payoff of relational behavior’, Journal of Marketing Research 48(5): 920–8 <http://doi.org/10.2307/23033529>.

Hudon, M. (2007) ‘Fair interest rates when lending to the poor’, Ethics and Economics 5(1): 1–8.

Hulme, D. and Mosley, P. (1996) Finance Against Poverty, Volume I: Analysis and Recommendations, London: Routledge.

Jones, L. and Turner, K. (2014) ‘At the nexus of investment and development: lessons from a 60-year experiment in SME impact investing’, Enterprise Development and Microfinance 25(4): 299–310 <http://doi.org/10.3362/1755-1986.2014.028>.

Jothilakshmi, M., Krishnaraj, R. and Sudeepkumar, N.K. (2009) ‘Empowering the members of women SHGs in livestock farming through need-based trainings’, Asia-Pacific Journal of Rural Development 19(2): 17–30.

Kar, A.K. (2011) ‘Microfinance institutions: a cross-country empirical investigation of outreach and sustainability’, Journal of Small Business & Entrepreneurship 24(3): 427–46 <http://doi.org/10.1080/08276331.2011.10593547>.

Karlan, D. and Valdivia, M. (2011) ‘Teaching entrepreneurship: impact of business training on microfinance clients and institutions’, Review of Economics and Statistics 93(2): 510–27 <http://doi.org/10.1162/REST_a_00074>.

Ledgerwood, J. (1999) Sustainable Banking with the Poor: Microfinance Handbook, Washington, DC: World Bank.

Mahmud, K.T., Mohamed, Z.A., Ismail, M.M., Shamsudin, M.N. and Hilton, D. (2007) ‘Perception and attitude of microcredit borrowers towards effectiveness of agricultural diversification and intensification project in Bangladesh’, Asia-Pacific Journal of Rural Development 17(2): 67–83 <http://doi.org/10.1177/1018529120070205>.

Mahmud, K.T., Parvez, A., Hilton, D., Kabir, G.M. and Wahid, I.S. (2014) ‘The role of training in reducing poverty: the case of agricultural workers receiving microcredit in Bangladesh’, International Journal of Training and Development 18(4): 282–90 <http://dx.doi.org/10.1111/ijtd.12039>.

Mersland, R. and Strøm, R.Ø. (2009) ‘Performance and governance in microfinance institutions’, Journal of Banking & Finance 33(4): 662–9 <http://doi.org/10.1016/j.jbankfin.2008.11>.

Nanayakkara, G. (2017) ‘Interaction and higher order effects of factors affecting the performance of microfinancing institutions’, International Journal of Social Economics 44(7): 900–20 <https://doi.org/10.1108/IJSE-12-2014-0251>.

Nwachukwu, J. (2014) ‘Interest rates, target markets and sustainability in microfinance’, Oxford Development Studies 42(1): 86–110 <https://doi.org/10.1080/13600818.2013.827164>.

Olivares-Polanco, F. (2005) ‘Commercializing microfinance and deepening outreach? Empirical evidence from Latin America’, ESR Review 7(2): 47–69.

Oster, S.M. (1995) Strategic Management for Nonprofit Organizations: Theory and Cases, New York: Oxford University Press.

Pagura, M.E., Graham, D.H. and Meyer, R.L. (2001) ‘Determinants of borrower dropout in microfinance: an empirical investigation in Mali’, in 2001 Annual Meeting, 5–8 August, Chicago, IL (No. 20568), Milwaukee, WI: American Agricultural Economics Association.

Pati, A.P. (2012) ‘Regulation versus outreach and sustainability: a study of the performance of microfinance institutions in India’, IUP Journal of Bank Management 11(4): 41–56.

Pearlman, S. (2010) Flexibility Matters: Do More Rigid Loan Contracts Reduce Demand for Microfinance? [online], CAF Working Paper, 2010/10, Caracas: CAF <http://scioteca.caf.com/handle/123456789/214> [accessed 10 June 2019].

Rabin, M. (1993) ‘Incorporating fairness into game theory and economics’, The American Economic Review 83(5): 1281–302 <http://doi.org/10.2307/2117561>.

Rashid, A. and Twaha, K. (2013) ‘Exploring the determinants of the productivity of Indian microfinance institutions’, Theoretical and Applied Economics 18(12): 83–96.

Robinson, M. (1995) ‘Introducing savings mobilization in microfinance programs: when and how’, Cavite, Philippines: Microfinance Network.

Rosholm, M., Nielsen, H.S. and Dabalen, A. (2007) ‘Evaluation of training in African enterprises’, Journal of Development Economics 84(1): 310–29 <https://doi.org/10.1016/j.jdeveco.2005.11.008>.

Sekabira, H. (2013) ‘Capital structure and its role on performance of microfinance institutions: the Ugandan case’, Sustainable Agriculture Research 2(3): 86–100 <http://doi.org/10.5539/sar.v2n3p86>.

Sharma, P.R. (2009) ‘Financial sustainability of selected MFIs of Nepal’, Journal of Nepalese Business Studies 5(1): 24–36 <https://doi.org/10.3126/jnbs.v5i1.2077>.

Sinha, F. (2013) ‘Banking on self-help groups: twenty years on’, Enterprise Development and Microfinance 24(1): 74–6 <https://doi.org/10.3362/1755-1986.2013.007>.

Swain, R.B. and Varghese, A. (2013) ‘Delivery mechanisms and impact of microfinance training in Indian self-help groups’, Journal of International Development 25(1): 11–21 <https://doi.org/10.1002/jid.1817>.

Zeija, F. (2013) ‘The sustainability of MFIs in Uganda: the need for consumer protection while balancing stakeholders’ interests’, Enterprise Development and Microfinance 24(3): 249–61 <https://doi.org/10.3362/1755-1986.2013.023>.

Abdulai, A. and Tewari, D.D. (2016) ‘Efficiency of microfinance institutions in sub-Saharan Africa: a stochastic frontier approach’, Ghana Journal of Development Studies 13(2): 117–39 <http://dx.doi.org/10.4314/gjds.v13i2.7>.

Abdulai, A. and Tewari, D.D. (2017) ‘Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa’, Enterprise Development and Microfinance 28(3): 162–81 <https://doi.org/10.3362/1755-1986.16-00014>.

Aboagye, A.Q. and Otieku, J. (2010) ‘Are Ghanaian MFIs’ performance associated with corporate governance?’ Corporate Governance: The International Journal of Business in Society 10(3): 307–20 <https://doi.org/10.1108/14720701011051938>.

Adams, D.W. and Vogel, R.C. (2016) ‘Microfinance dreams’, Enterprise Development and Microfinance 27(2): 142–54 <https://doi.org:10.3362/1755-1986.2016.010>.

Adhikary, S. and Papachristou, G. (2014) ‘Is there a trade-off between financial performance and outreach in South Asian microfinance institutions?’ Journal of Developing Areas 48(4): 381–402 <http://doi.org/10.1353/jda.2014.0081>.

Ahmed, S.M. (2009) ‘Capability development among the ultra-poor in Bangladesh: a case study’, Journal of Health, Population, and Nutrition 27(4): 528–35 <http://doi.org/10.3329/jhpn.v27i4.3399>.

Akgunduz, Y. and Sanli, S.C. (2017) ‘The effect of employee advocacy and perceived organizational support on job embeddedness and turnover intention in hotels’, Journal of Hospitality and Tourism Management 31: 118–25 <https://doi.org/10.1016/j.jhtm.2016.12.002>.

Alvord, S.H., Brown, L.D. and Letts, C.W. (2004) ‘Social entrepreneurship and societal transformation: an exploratory study’, Journal of Applied Behavioral Science 40(3): 260–82 <https://doi.org/10.1177/0021886304266847>.

Austin, J., Stevenson, H. and Wei-Skillern, J. (2006) ‘Social and commercial entrepreneurship: same, different, or both?’ Entrepreneurship Theory and Practice 30(1): 1–22 <https://doi.org/10.5700/rausp1055>.

Ayayi, A.G. and Sene, M. (2010) ‘What drives microfinance institution’s financial sustainability’, Journal of Developing Areas 44(1): 303–24 <http://doi.org/10.1353/jda.0.0093>.

Bassem, B.S. (2009) ‘Governance and performance of microfinance institutions in Mediterranean countries’, Journal of Business Economics and Management 10(1): 31–43 <10.3846/1611-1699.2009.10.31-43>.

Besley, T. (1995) ‘Savings, credit and insurance’, in D. Rodrik and M.R. Rosenzweig (eds), Handbook of Development Economics, pp. 2123–207, Oxford: Elsevier.

Charitonenko, S. and Campion, A. (2003) ‘Expanding commercial microfinance in rural areas: constraints and opportunities’, in Paving the Way Forward: An International Conference on Best Practice on Rural Finance (Vol. 2), Washington, DC.

Copestake, J. (2000) ‘Integrating impact monitoring and assessment of microfinance’, Development in Practice 10(5): 705–11 <http://dx.doi.org/10.1080/09614520050195580>.

Cornée, S. and Szafarz, A. (2014) ‘Vive la différence: social banks and reciprocity in the credit market’, Journal of Business Ethics 125(3): 361–80 <https://doi.org/10.1007/s10551-013-1922-9>.

Cornée, S., Masclet, D. and Thenet, G. (2009) ‘Long-term relationship and reciprocity in credit market experiment: implications for microfinance’, In Congrès AFFI 2009, pp. 1–36.

Dehejia, R., Montgomery, H. and Morduch, J. (2012) ‘Do interest rates matter? Credit demand in the Dhaka slums’, Journal of Development Economics 97(2): 437–49 <https://doi.org/10.1016/j.jdeveco.2011.06.001>.

Frederick, F.R. and Thomas, T.E.A.L. (1996) The Loyalty Effect: The Hidden Force behind Growth, Profits, and Lasting Value, Boston, MA: Harvard Business School Press.

Gouldner, A.W. (1960) ‘The norm of reciprocity: a preliminary statement’, American Sociological Review 25(2): 161–78 <http://dx.doi.org/10.2307/2092623>.

Henry, S. (2006) Good Practice in Business Development Services: How Do We Enhance Entrepreneurial Skills in MFI Clients, Toronto: Alterna Savings.

Hoppner, J.J. and Griffith, D.A. (2011) ‘The role of reciprocity in clarifying the performance payoff of relational behavior’, Journal of Marketing Research 48(5): 920–8 <http://doi.org/10.2307/23033529>.

Hudon, M. (2007) ‘Fair interest rates when lending to the poor’, Ethics and Economics 5(1): 1–8.

Hulme, D. and Mosley, P. (1996) Finance Against Poverty, Volume I: Analysis and Recommendations, London: Routledge.

Jones, L. and Turner, K. (2014) ‘At the nexus of investment and development: lessons from a 60-year experiment in SME impact investing’, Enterprise Development and Microfinance 25(4): 299–310 <http://doi.org/10.3362/1755-1986.2014.028>.

Jothilakshmi, M., Krishnaraj, R. and Sudeepkumar, N.K. (2009) ‘Empowering the members of women SHGs in livestock farming through need-based trainings’, Asia-Pacific Journal of Rural Development 19(2): 17–30.

Kar, A.K. (2011) ‘Microfinance institutions: a cross-country empirical investigation of outreach and sustainability’, Journal of Small Business & Entrepreneurship 24(3): 427–46 <http://doi.org/10.1080/08276331.2011.10593547>.

Karlan, D. and Valdivia, M. (2011) ‘Teaching entrepreneurship: impact of business training on microfinance clients and institutions’, Review of Economics and Statistics 93(2): 510–27 <http://doi.org/10.1162/REST_a_00074>.

Ledgerwood, J. (1999) Sustainable Banking with the Poor: Microfinance Handbook, Washington, DC: World Bank.

Mahmud, K.T., Mohamed, Z.A., Ismail, M.M., Shamsudin, M.N. and Hilton, D. (2007) ‘Perception and attitude of microcredit borrowers towards effectiveness of agricultural diversification and intensification project in Bangladesh’, Asia-Pacific Journal of Rural Development 17(2): 67–83 <http://doi.org/10.1177/1018529120070205>.

Mahmud, K.T., Parvez, A., Hilton, D., Kabir, G.M. and Wahid, I.S. (2014) ‘The role of training in reducing poverty: the case of agricultural workers receiving microcredit in Bangladesh’, International Journal of Training and Development 18(4): 282–90 <http://dx.doi.org/10.1111/ijtd.12039>.

Mersland, R. and Strøm, R.Ø. (2009) ‘Performance and governance in microfinance institutions’, Journal of Banking & Finance 33(4): 662–9 <http://doi.org/10.1016/j.jbankfin.2008.11>.

Nanayakkara, G. (2017) ‘Interaction and higher order effects of factors affecting the performance of microfinancing institutions’, International Journal of Social Economics 44(7): 900–20 <https://doi.org/10.1108/IJSE-12-2014-0251>.

Nwachukwu, J. (2014) ‘Interest rates, target markets and sustainability in microfinance’, Oxford Development Studies 42(1): 86–110 <https://doi.org/10.1080/13600818.2013.827164>.

Olivares-Polanco, F. (2005) ‘Commercializing microfinance and deepening outreach? Empirical evidence from Latin America’, ESR Review 7(2): 47–69.

Oster, S.M. (1995) Strategic Management for Nonprofit Organizations: Theory and Cases, New York: Oxford University Press.

Pagura, M.E., Graham, D.H. and Meyer, R.L. (2001) ‘Determinants of borrower dropout in microfinance: an empirical investigation in Mali’, in 2001 Annual Meeting, 5–8 August, Chicago, IL (No. 20568), Milwaukee, WI: American Agricultural Economics Association.

Pati, A.P. (2012) ‘Regulation versus outreach and sustainability: a study of the performance of microfinance institutions in India’, IUP Journal of Bank Management 11(4): 41–56.

Pearlman, S. (2010) Flexibility Matters: Do More Rigid Loan Contracts Reduce Demand for Microfinance? [online], CAF Working Paper, 2010/10, Caracas: CAF <http://scioteca.caf.com/handle/123456789/214> [accessed 10 June 2019].

Rabin, M. (1993) ‘Incorporating fairness into game theory and economics’, The American Economic Review 83(5): 1281–302 <http://doi.org/10.2307/2117561>.

Rashid, A. and Twaha, K. (2013) ‘Exploring the determinants of the productivity of Indian microfinance institutions’, Theoretical and Applied Economics 18(12): 83–96.

Robinson, M. (1995) ‘Introducing savings mobilization in microfinance programs: when and how’, Cavite, Philippines: Microfinance Network.

Rosholm, M., Nielsen, H.S. and Dabalen, A. (2007) ‘Evaluation of training in African enterprises’, Journal of Development Economics 84(1): 310–29 <https://doi.org/10.1016/j.jdeveco.2005.11.008>.

Sekabira, H. (2013) ‘Capital structure and its role on performance of microfinance institutions: the Ugandan case’, Sustainable Agriculture Research 2(3): 86–100 <http://doi.org/10.5539/sar.v2n3p86>.

Sharma, P.R. (2009) ‘Financial sustainability of selected MFIs of Nepal’, Journal of Nepalese Business Studies 5(1): 24–36 <https://doi.org/10.3126/jnbs.v5i1.2077>.

Sinha, F. (2013) ‘Banking on self-help groups: twenty years on’, Enterprise Development and Microfinance 24(1): 74–6 <https://doi.org/10.3362/1755-1986.2013.007>.

Swain, R.B. and Varghese, A. (2013) ‘Delivery mechanisms and impact of microfinance training in Indian self-help groups’, Journal of International Development 25(1): 11–21 <https://doi.org/10.1002/jid.1817>.

Zeija, F. (2013) ‘The sustainability of MFIs in Uganda: the need for consumer protection while balancing stakeholders’ interests’, Enterprise Development and Microfinance 24(3): 249–61 <https://doi.org/10.3362/1755-1986.2013.023>.

Abdulai, A. and Tewari, D.D. (2016) ‘Efficiency of microfinance institutions in sub-Saharan Africa: a stochastic frontier approach’, Ghana Journal of Development Studies 13(2): 117–39 <http://dx.doi.org/10.4314/gjds.v13i2.7>.

Abdulai, A. and Tewari, D.D. (2017) ‘Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa’, Enterprise Development and Microfinance 28(3): 162–81 <https://doi.org/10.3362/1755-1986.16-00014>.

Aboagye, A.Q. and Otieku, J. (2010) ‘Are Ghanaian MFIs’ performance associated with corporate governance?’ Corporate Governance: The International Journal of Business in Society 10(3): 307–20 <https://doi.org/10.1108/14720701011051938>.

Adams, D.W. and Vogel, R.C. (2016) ‘Microfinance dreams’, Enterprise Development and Microfinance 27(2): 142–54 <https://doi.org:10.3362/1755-1986.2016.010>.

Adhikary, S. and Papachristou, G. (2014) ‘Is there a trade-off between financial performance and outreach in South Asian microfinance institutions?’ Journal of Developing Areas 48(4): 381–402 <http://doi.org/10.1353/jda.2014.0081>.

Ahmed, S.M. (2009) ‘Capability development among the ultra-poor in Bangladesh: a case study’, Journal of Health, Population, and Nutrition 27(4): 528–35 <http://doi.org/10.3329/jhpn.v27i4.3399>.

Akgunduz, Y. and Sanli, S.C. (2017) ‘The effect of employee advocacy and perceived organizational support on job embeddedness and turnover intention in hotels’, Journal of Hospitality and Tourism Management 31: 118–25 <https://doi.org/10.1016/j.jhtm.2016.12.002>.

Alvord, S.H., Brown, L.D. and Letts, C.W. (2004) ‘Social entrepreneurship and societal transformation: an exploratory study’, Journal of Applied Behavioral Science 40(3): 260–82 <https://doi.org/10.1177/0021886304266847>.

Austin, J., Stevenson, H. and Wei-Skillern, J. (2006) ‘Social and commercial entrepreneurship: same, different, or both?’ Entrepreneurship Theory and Practice 30(1): 1–22 <https://doi.org/10.5700/rausp1055>.

Ayayi, A.G. and Sene, M. (2010) ‘What drives microfinance institution’s financial sustainability’, Journal of Developing Areas 44(1): 303–24 <http://doi.org/10.1353/jda.0.0093>.

Bassem, B.S. (2009) ‘Governance and performance of microfinance institutions in Mediterranean countries’, Journal of Business Economics and Management 10(1): 31–43 <10.3846/1611-1699.2009.10.31-43>.

Besley, T. (1995) ‘Savings, credit and insurance’, in D. Rodrik and M.R. Rosenzweig (eds), Handbook of Development Economics, pp. 2123–207, Oxford: Elsevier.

Charitonenko, S. and Campion, A. (2003) ‘Expanding commercial microfinance in rural areas: constraints and opportunities’, in Paving the Way Forward: An International Conference on Best Practice on Rural Finance (Vol. 2), Washington, DC.

Copestake, J. (2000) ‘Integrating impact monitoring and assessment of microfinance’, Development in Practice 10(5): 705–11 <http://dx.doi.org/10.1080/09614520050195580>.

Cornée, S. and Szafarz, A. (2014) ‘Vive la différence: social banks and reciprocity in the credit market’, Journal of Business Ethics 125(3): 361–80 <https://doi.org/10.1007/s10551-013-1922-9>.

Cornée, S., Masclet, D. and Thenet, G. (2009) ‘Long-term relationship and reciprocity in credit market experiment: implications for microfinance’, In Congrès AFFI 2009, pp. 1–36.

Dehejia, R., Montgomery, H. and Morduch, J. (2012) ‘Do interest rates matter? Credit demand in the Dhaka slums’, Journal of Development Economics 97(2): 437–49 <https://doi.org/10.1016/j.jdeveco.2011.06.001>.

Frederick, F.R. and Thomas, T.E.A.L. (1996) The Loyalty Effect: The Hidden Force behind Growth, Profits, and Lasting Value, Boston, MA: Harvard Business School Press.

Gouldner, A.W. (1960) ‘The norm of reciprocity: a preliminary statement’, American Sociological Review 25(2): 161–78 <http://dx.doi.org/10.2307/2092623>.

Henry, S. (2006) Good Practice in Business Development Services: How Do We Enhance Entrepreneurial Skills in MFI Clients, Toronto: Alterna Savings.

Hoppner, J.J. and Griffith, D.A. (2011) ‘The role of reciprocity in clarifying the performance payoff of relational behavior’, Journal of Marketing Research 48(5): 920–8 <http://doi.org/10.2307/23033529>.

Hudon, M. (2007) ‘Fair interest rates when lending to the poor’, Ethics and Economics 5(1): 1–8.

Hulme, D. and Mosley, P. (1996) Finance Against Poverty, Volume I: Analysis and Recommendations, London: Routledge.

Jones, L. and Turner, K. (2014) ‘At the nexus of investment and development: lessons from a 60-year experiment in SME impact investing’, Enterprise Development and Microfinance 25(4): 299–310 <http://doi.org/10.3362/1755-1986.2014.028>.

Jothilakshmi, M., Krishnaraj, R. and Sudeepkumar, N.K. (2009) ‘Empowering the members of women SHGs in livestock farming through need-based trainings’, Asia-Pacific Journal of Rural Development 19(2): 17–30.

Kar, A.K. (2011) ‘Microfinance institutions: a cross-country empirical investigation of outreach and sustainability’, Journal of Small Business & Entrepreneurship 24(3): 427–46 <http://doi.org/10.1080/08276331.2011.10593547>.

Karlan, D. and Valdivia, M. (2011) ‘Teaching entrepreneurship: impact of business training on microfinance clients and institutions’, Review of Economics and Statistics 93(2): 510–27 <http://doi.org/10.1162/REST_a_00074>.

Ledgerwood, J. (1999) Sustainable Banking with the Poor: Microfinance Handbook, Washington, DC: World Bank.

Mahmud, K.T., Mohamed, Z.A., Ismail, M.M., Shamsudin, M.N. and Hilton, D. (2007) ‘Perception and attitude of microcredit borrowers towards effectiveness of agricultural diversification and intensification project in Bangladesh’, Asia-Pacific Journal of Rural Development 17(2): 67–83 <http://doi.org/10.1177/1018529120070205>.

Mahmud, K.T., Parvez, A., Hilton, D., Kabir, G.M. and Wahid, I.S. (2014) ‘The role of training in reducing poverty: the case of agricultural workers receiving microcredit in Bangladesh’, International Journal of Training and Development 18(4): 282–90 <http://dx.doi.org/10.1111/ijtd.12039>.

Mersland, R. and Strøm, R.Ø. (2009) ‘Performance and governance in microfinance institutions’, Journal of Banking & Finance 33(4): 662–9 <http://doi.org/10.1016/j.jbankfin.2008.11>.

Nanayakkara, G. (2017) ‘Interaction and higher order effects of factors affecting the performance of microfinancing institutions’, International Journal of Social Economics 44(7): 900–20 <https://doi.org/10.1108/IJSE-12-2014-0251>.

Nwachukwu, J. (2014) ‘Interest rates, target markets and sustainability in microfinance’, Oxford Development Studies 42(1): 86–110 <https://doi.org/10.1080/13600818.2013.827164>.

Olivares-Polanco, F. (2005) ‘Commercializing microfinance and deepening outreach? Empirical evidence from Latin America’, ESR Review 7(2): 47–69.

Oster, S.M. (1995) Strategic Management for Nonprofit Organizations: Theory and Cases, New York: Oxford University Press.

Pagura, M.E., Graham, D.H. and Meyer, R.L. (2001) ‘Determinants of borrower dropout in microfinance: an empirical investigation in Mali’, in 2001 Annual Meeting, 5–8 August, Chicago, IL (No. 20568), Milwaukee, WI: American Agricultural Economics Association.

Pati, A.P. (2012) ‘Regulation versus outreach and sustainability: a study of the performance of microfinance institutions in India’, IUP Journal of Bank Management 11(4): 41–56.

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