The important role of staff

Dear Colleagues,

For long I have been interested in how employees have an influence on MFIs’ performance. Often we tend to think that competition, regulation, governance and management are what really decide the performance of a firm. And of course they all matter. However, in MFIs pursuing both social and business objectives and practicing relationship banking, i.e. where the credit officer plays a vital role, I think we have under-estimated the role of employees. Thus, in this new paper of ours published in Journal of Business Research we study how the tenure of employees influence staff performance. We emphasize that employees face tensions in performing their roles which in turn contributes to mission drift. Overall, our findings show that employee tenure affects individual social and financial performance differently and that employees with the longest tenure are the least inclined to experience tradeoff tensions.

The paper is open access and you can read it here:

Best wishes,
Roy Mersland
Professor/Director PhD program
Director Center for Research on Social Enterprises and Microfinance (CERSEM)
School of Business and Law
University of Agder