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Although microfinance (MF) has been established as an effective approach to provide access to financial services for people in low income countries, close to one-third of adults worldwide, about 2 billion people, are still without access. The purpose of this study is therefore to provide knowledge on how MF institutions (MFIs) can innovate and scale their services to improve financial inclusion for more people in need, particularly small holder farmers.

Recent research suggests that Grameen Foundation builds on well-established MF models and focuses on continuously improving the design and increasing the reach of its services. Based on a retrospective longitudinal design, this study draws on dynamic capability theory to identify important lessons in MF innovation at Grameen through analyses of seven key agricultural MF programs.

This study finds that Grameen innovated these programs by sensing country-specific needs; seizing opportunities to use existing technology; creating linkages across multisector partners; adopting a business model that enabled replicability and sustainability of innovation transfer; and 5 integrating solutions that enabled process automation and scaling of outcomes. A key theoretical finding in applying dynamic capabilities theory to studies of innovation in MF revealed the core concepts to be transferrable, valuable, imitable and nonsubstitutable resources.

Using these insights, this study discusses theoretical, practical and policy implications of MF innovation to improve financial inclusion in low-income countries. Practitioners and researchers should assess the transferability of our findings to other MFIs and economic development contexts.

The purpose of this paper is to understand how microfinance initiatives (MFIs) are organized and orchestrated to serve internal and external stakeholders.

A qualitative case study of three international nongovernmental organizations (NGOs)–CARE, Oxfam and Grameen Foundation–provided insights into how they each organize and orchestrate MFIs. We used Pettigrew's (1987, 1990) contextual inquiry framework to guide our data collection and analysis of 20 interviews to understand how capacity building, technology adaptation and outcome measurement interact with content, context and process.

We found that CARE's classical model exemplifies decades of successful MFI service delivery, serving as a benchmark for other NGOs. Oxfam's adaptive model builds on CARE's model to leverage MFIs as platforms for achieving multisectoral outcomes. Finally, Grameen Foundation's innovative model builds on both CARE's classical and Oxfam's adaptive models, using human-centered design and scalable business practices. We also found overlaps between the three models, demonstrating the continuous adaptation of MFI models based on changing contexts, such as the coronavirus disease 2019 (COVID-19) pandemic.

Our research focused on three NGOs headquartered in the USA, involving interviews with staff members having microfinance expertise. We offer analytical generalizability while emphasizing that any change in cultural context, institutional setting or operational conditions may produce different outcomes.

We provide exemplary and comparative insights into key issues related to organizing and orchestrating MFIs for NGO practitioners, scholars and policymakers who wish to understand prevailing service delivery models. Finally, we demonstrate the contextual inquiry framework as a viable approach to learn how NGOs organize and orchestrate MFIs through content, context and process.