Microfinance: Accountability from the grassroots

Dixon, R.; Ritchie., J.; Siwale, J.

Abstract

Purpose – The purpose of this research is to use an accountability framework to explain the emerging tensions in accountability and how an intended bottom-up approach became progressively supplanted. This paper is set within an emerging Zambian microfinance organisation moving into crisis. Design/methodology/approach – A series of semi-structured interviews were conducted with key local microfinance specialists, managers and accountants, clients and past and current loan officers. Live observation of the client-loan officer interface and internal meetings provided triangulation on accountability relationships in the midst of crisis. Data were analysed using NVIVO, a qualitative computer software package. Findings – The findings show that tensions between vertical and horizontal accountability in practice can be directly translated into heightened pressure and stresses on both the non-governmental organisation (NGO) and its loan officers, which constrain overall accountabilities to other stakeholders and disguise other potential dysfunctions. Research limitations/implications – This study focussed on accountability at the grassroots in microfinance NGOs with a social mission. It reveals potential for further personal, community and socially constituted accounting research within microfinance in particular. Originality/value – The paper adds to the literature on NGO accountability. It will be of value to researchers and practitioners seeking to gain a better understanding of not-for-profit organisations whose goals are not primarily wealth creation. It also gives details on under-researched areas in accounting, namely NGOs and poverty reduction, and practices in Sub-Saharan Africa.

Citation

Dixon, R., Ritchie., J., & Siwale, J. (2006). Microfinance: Accountability from the grassroots. Accounting, Auditing and Accountability Journal, 19(3), 405-427. https://doi.org/10.1108/09513570610670352

• Journal Article Type: Article
• Publication Date: May 1, 2006
• Deposit Date: Mar 26, 2007
• Journal: Accounting Auditing and Accountability
• Print ISSN: 0951-3574
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 19
• Issue: 3
• Pages: 405-427
• DOI: https://doi.org/10.1108/09513570610670352
• Keywords: Finance, Non-governmental organizations, Poverty, Zambia.
• Public URL: https://durham-repository.worktribe.com/output/1547385