IDEAS home Printed from https://ideas.repec.org/a/eme/ajemsp/ajems-03-2021-0139.html
   My bibliography  Save this article

Relationship lending and financial performance of Savings and Credit Co-operative Societies in Tanzania

Author

Listed:
  • Nathaniel Naiman Towo
  • Esther Ishengoma
  • Neema Mori

Abstract

Purpose - This paper examines the influence of relationship lending on the financial performance of Savings and Credit Co-operative Societies (SACCOS) in Tanzania. Design/methodology/approach - A panel data of 460 observations representing 115 SACCOS from Tanzania was used. Descriptive statistics and panel regression models were employed to analyse the data. Findings - The results show that the duration of the relationship is negatively and significantly related to SACCOS financial performance, substantiating the relationship lending theories. The number of relationships has an insignificant effect on financial performance. Research limitations/implications - The study focused on the duration and the number of relationships as aspects of relationship lending. The paper is limited in the sense that other aspects of relationship lending such as the concentration of relationships that could affect financial performance are not included in this study. The results apply to SACCOS and not to other microfinance institutions with strong bargaining power. Originality/value - This study positions relationship lending in the SACCOS context where the market for the wholesale loan is less competitive.

Suggested Citation

  • Nathaniel Naiman Towo & Esther Ishengoma & Neema Mori, 2022. "Relationship lending and financial performance of Savings and Credit Co-operative Societies in Tanzania," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 13(4), pages 614-635, April.
    • Handle: RePEc:eme:ajemsp:ajems-03-2021-0139
    DOI: 10.1108/AJEMS-03-2021-0139
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJEMS-03-2021-0139/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/AJEMS-03-2021-0139/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/AJEMS-03-2021-0139?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ajemsp:ajems-03-2021-0139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.