The Institutional Journey of Grameen-Inspired Models in the UK
DOI:
https://doi.org/10.51137/wrp.ijarbm.760Keywords:
Institutional Entrepreneurship, Grameen Model, Microfinance, Financial Exclusion, Community FinanceAbstract
This study examines how microfinance institutions (MFIs) in the United Kingdom have adapted the Grameen model within a developed economy, with a focus on the role of institutional entrepreneurship in addressing institutional complexity. Using a qualitative approach grounded in critical realism, the research draws on five case studies of UK-based MFIs, supported by 11 semi-structured interviews and secondary data. The findings show that organisations encountered significant challenges, including regulatory constraints, cultural misalignment, welfare policy pressures, and competition from high-cost lenders. In response, successful organisations engaged in strategic problem framing, developed partnerships, and shifted towards personal lending models to improve operational sustainability. By contrast, organisations that remained closely aligned with the original Grameen model or maintained rigid organisational identities faced difficulties in adapting to the UK context. The study highlights the importance of hybrid organisational approaches that balance social mission with financial sustainability, as well as the role of identity transformation and external alignment in shaping institutional outcomes. These findings contribute to the literature on institutional entrepreneurship and microfinance by demonstrating how global models are reinterpreted and modified within developed institutional environments.
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