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This study examines the relationship between the origin of chief executive officers (CEOs) and performance in hybrid businesses using a sample of 353 microfinance institutions (MFIs) from 76 countries during 1996–2011. The statistical results suggest that MFIs whose CEOs have been recruited internally perform better compared to institutions with externally hired CEOs. The findings are consistent with the view that insider CEOs have firm-specific skills, experience, and network resources that result in enhanced performance in hybrid businesses. Therefore, boards of MFIs searching for a new CEO should look for suitable internal candidates.
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... There is growing evidence linking CEO experience with microfinance performance (Galema, Lensink and Mersland, 2012;Hartarska, 2005;Gohar and Batool, 2015;Randøy, Strøm and Mersland, 2015;Hasan, Quayes and Khalily, 2019;Mersland et al., 2019). We introduce the variable EXP into our analyses. ...
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This paper extends the Fang and Wang (2015) multitier framework to examine how Chief Executive Officers' (CEOs) characteristics determine Microfinance Institutions' performance in Africa. The framework presented is decomposed into three tiers of performance components: financial performance, outreach and sustainability. Our key hypothesis is that varying CEOs' characteristics take distinct channels in influencing MFIs' financial performance, outreach and sustainability. As such we expect to find superior performance from CEOs who are more experienced, have an advanced degree or professional qualification and possibly identify as polyglots compared to their peers.
... The world has acknowledged the reservations of business individuals who are taking various measures and feasibilities to earn more return on their invested capital. In this context: Mersland, Beisland, and Pascal (2019) examined the origin and performance of chief executive officers that are more important and an asset to the hybrid businesses. For the achievement of desired objectives, the role of business owners could not be neglected, and the role of directors is also promotive. ...
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