Todd W. Moss is an Assistant Professor of Entrepreneurship and Sustainability, Whitman School of Management, Syracuse University, Syracuse, NY 13244, USA.
The Effect of Virtuous and Entrepreneurial Orientations on Microfinance Lending and Repayment: A Signaling Theory Perspective
Version of Record online: 4 MAY 2014
© 2014 Baylor University
Entrepreneurship Theory and Practice
Special Issue: Seeding Entrepreneurship with Microfinance
Volume 39, Issue 1, pages 27–52, January 2015
How to Cite
Moss, T. W., Neubaum, D. O. and Meyskens, M. (2015), The Effect of Virtuous and Entrepreneurial Orientations on Microfinance Lending and Repayment: A Signaling Theory Perspective. Entrepreneurship Theory and Practice, 39: 27–52. doi: 10.1111/etap.12110
- Issue online: 4 JAN 2015
- Version of Record online: 4 MAY 2014
The availability of capital for microenterprises has grown rapidly due to microfinancing platforms such as Kiva. The investment decisions of microlenders are challenged due to the limited information about the microenterprises' characteristics and behavioral intentions. Extending signaling theory, we suggest that microenterprises' narratives on microfinancing platforms are an important means to signal valuable characteristics and behavioral intentions to prospective lenders. Results indicate that microenterprises, which signal autonomy, competitive aggressiveness, and risk-taking, are more likely to receive funding, and to receive it more quickly. Microenterprises that signal conscientiousness, courage, empathy, and warmth are less likely to get funded. Rhetorical signaling proactiveness, conscientiousness, courage, warmth, or zeal is negatively associated with loan repayment.