Sample Essay
The institution-based view stresses on the focus that must be placed on the bigger picture and that due consideration needs to be given informal and formal institutions. It means for example looking beyond the economic realities to the institutional frameworks behind these for example the legal framework of a nation or even the cultural norms affecting the work habits of its residents (Peng, 2009 ).
Kiva by its very nature is international in its operations. Even at its very initial stages investors from developed countries were helping entrepreneurs from a developing nation in a totally different part of the world.
Kiva by raising funds from outside the developing nations and distributing money as a non-profit organization has at least till now managed to escape much of formal regulation that an established organization working within the developing country would face.
Basically Kiva’s innovative model and use of technology means that it will experience fewer regulatory hindrances then what a traditional microfinance company in Uganda would experience.
This model also allows it to escape from dealing with the cultural norms of developing nations. This basically means that Kiva can expand really fast internationally because it has a model that is not peculiar to the cultural norms of anyone country but is in fact applicable to most developing nations. Basically the model allows the company to expand with relative ease compared to more traditional models (Peng, 2009 ).
However having said this it is important to note that Kiva is still open to some problems when it is analyzed from the institution-based view. For example Kiva eventually has to deal with realities like physical infrastructure, security and poor internet connectivity all of which are an outcome of the institutions peculiar to the the country in which they are working.
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