Abstract

In order to effectively address the poorest of the poor in BOP markets, microfinance institutions must tackle institutional voids and a market for solutions that encompasses a wide variety of products and services. The literature on the boundary of the firm is utilized to understand the unique factors that drive partnership formation for MFIs in BOP markets. We then develop a contingency fit model for MFI cross-sectoral partnerships that examines the critical factors and resources that apply in different contexts. This model is further explicated with a number of practical MFI examples of cross-sectoral partnering. The paper concludes with implications for research and practice.

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