An Exploration of Service Ecosystem in Microfinance: A Service-Dominant Logic View

Siddike, Md. Abul Kalam and Kohda, Youji School of Knowledge Science

Japan Advanced Institute of Science and Technology, Japan18/06/2016

Outline1. Research Background

2. Research Methodology

3. Exploration of Service Ecosystem in BRAC’s Microfinance

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1. Research Background

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Our Focused Service System• Service Dominant Logic (SDL) can be understood from two point of

view, i. e. Behavior and Structure.• Resource integration is the center of behavior and service system is

considered as structure.

Value in use/context

Service system

Institutions

Resource integration

Value co-creation

Resource liquidityResource density

Behavior

Structure

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Our Approach• There is not so many research for exploration of service ecosystem in

SDL perspective.

• To explore a service ecosystem is difficult due to diverse actors. Listing up diverse actors are very difficult.

• As a result, we explore a service ecosystem using a real life case.

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Research Objective

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To explore the service ecosystems in microfinance in the paradigm of service-

dominant logic.

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2. Research Methodology

Research Methodology• Adopt qualitative case study by interview.

• Interviews with 11 employees and 14 customers from BRAC from 17th of December 2014 to January 2015.

• Direct observation of Village Organization (VO) meetings, and financial education program.

• Analyze the data qualitatively (thematically).

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3. Exploration of Service Ecosystems in BRAC’s Microfinance

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BRAC, Bangladesh• BRAC (Bangladesh Rural Advancement Committee) is one of the biggest

and successful NGOs in Bangladesh.

• BRAC provides a range of microfinance services to the poverty people including microloans, savings, insurance and social services.

• Why we select BRAC as a case? Because BRAC not only provides financial services but also provides a series of social services to build livelihoods, boost consumption and improve well-being through creating self-employment.

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Evolving Business Model in Microfinance

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Introduced Financial literacy through

Customer Service Assistant (CSA)Customer

PO/BM

Advice and monitoring

CSA

Financialeducation

InformationExchange

Previous Business Model

PO/BM CustomerAdvice and Monitoring

PO: Program OrganizerBM: Branch Manager

Current business model

the strengthening of educational opportunity

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Structure and Institutions of Microfinance Service Ecosystem

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Resource Integration in Microfinance

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Theoretical Implications

Conclusion• First time we showed the micro, meso and macro structure of service

ecosystem in real life case.

• On-demand information sharing, 4 days monthly monitoring, financial education, micro-service transactions, social enterprise and community culture are the institutions in service ecosystems.

• Social enterprises from all over the world can adopt the service system model modifying in the local settings.

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Thank you very much for your kind attention

Questions or comments, Please

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