Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks

Faith Gacheri Kamandi; Godfrey Muigai Kinyua; Reuben Njuguna Kinyuru

doi:doi:10.11648/j.ebm.20261205.12

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Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks

Faith Gacheri Kamandi^*

, Godfrey Muigai Kinyua

, Reuben Njuguna Kinyuru

Published in European Business & Management (Volume 12, Issue 5)

Received: 7 October 2026 Accepted: 22 October 2026 Published: 31 October 2026

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Abstract

The microfinance banking industry has contributed significantly to socioeconomic development at family, community, and national levels through financial inclusion, particularly by expanding access to financial services among traditionally underserved groups. However, continued reliance on traditional product designs, conventional financing methods, and standardized service delivery models has constrained the ability of microfinance banks to respond to diverse customer needs and compete effectively in a dynamic financial services environment. This study examined the effect of open-mindedness on the competitiveness of microfinance banks in Kenya, drawing its theoretical anchorage from Dynamic Capabilities Theory and the Open Innovation Model. The study adopted the positivist research paradigm and employed an explanatory research design, consistent with its objective of examining causal linkages among the study variables. The units of analysis and observation were microfinance banks and management personnel, respectively, with a population of 616 management staff. A two-stage sampling procedure combining proportionate stratified and simple random sampling was employed to select 243 management staff, from whom data were collected using a structured questionnaire. Frequency counts, measures of central tendency and measures of dispersion were used to summarise the data, while simple linear regression served as the primary empirical model. The findings established that open-mindedness had a positive effect on the competitiveness of microfinance banks. The study recommends that the Head of Finance and Strategy establish a framework that promotes receptiveness to new ideas and alternative perspectives, facilitates real-time customer feedback and co-creation of value, and incorporates customer insights and adaptive solutions into continuous improvements in processes, products, and services.

Published in	European Business & Management (Volume 12, Issue 5)
DOI	10.11648/j.ebm.20261205.12
Page(s)	100-114
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Firm Competitiveness, Learning Orientation, Open-Mindedness, Reflective Thinking and Receptiveness

References

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Kamandi, F. G., Kinyua, G. M., Kinyuru, R. N. (2026). Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks. European Business & Management, 12(5), 100-114. https://doi.org/10.11648/j.ebm.20261205.12

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Kamandi, F. G.; Kinyua, G. M.; Kinyuru, R. N. Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks. Eur. Bus. Manag. 2026, 12(5), 100-114. doi: 10.11648/j.ebm.20261205.12

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Kamandi FG, Kinyua GM, Kinyuru RN. Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks. Eur Bus Manag. 2026;12(5):100-114. doi: 10.11648/j.ebm.20261205.12

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@article{10.11648/j.ebm.20261205.12,
  author = {Faith Gacheri Kamandi and Godfrey Muigai Kinyua and Reuben Njuguna Kinyuru},
  title = {Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks},
  journal = {European Business & Management},
  volume = {12},
  number = {5},
  pages = {100-114},
  doi = {10.11648/j.ebm.20261205.12},
  url = {https://doi.org/10.11648/j.ebm.20261205.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20261205.12},
  abstract = {The microfinance banking industry has contributed significantly to socioeconomic development at family, community, and national levels through financial inclusion, particularly by expanding access to financial services among traditionally underserved groups. However, continued reliance on traditional product designs, conventional financing methods, and standardized service delivery models has constrained the ability of microfinance banks to respond to diverse customer needs and compete effectively in a dynamic financial services environment. This study examined the effect of open-mindedness on the competitiveness of microfinance banks in Kenya, drawing its theoretical anchorage from Dynamic Capabilities Theory and the Open Innovation Model. The study adopted the positivist research paradigm and employed an explanatory research design, consistent with its objective of examining causal linkages among the study variables. The units of analysis and observation were microfinance banks and management personnel, respectively, with a population of 616 management staff. A two-stage sampling procedure combining proportionate stratified and simple random sampling was employed to select 243 management staff, from whom data were collected using a structured questionnaire. Frequency counts, measures of central tendency and measures of dispersion were used to summarise the data, while simple linear regression served as the primary empirical model. The findings established that open-mindedness had a positive effect on the competitiveness of microfinance banks. The study recommends that the Head of Finance and Strategy establish a framework that promotes receptiveness to new ideas and alternative perspectives, facilitates real-time customer feedback and co-creation of value, and incorporates customer insights and adaptive solutions into continuous improvements in processes, products, and services.},
 year = {2026}
}

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TY  - JOUR
T1  - Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks
AU  - Faith Gacheri Kamandi
AU  - Godfrey Muigai Kinyua
AU  - Reuben Njuguna Kinyuru
Y1  - 2026/10/31
PY  - 2026
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DO  - 10.11648/j.ebm.20261205.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 100
EP  - 114
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20261205.12
AB  - The microfinance banking industry has contributed significantly to socioeconomic development at family, community, and national levels through financial inclusion, particularly by expanding access to financial services among traditionally underserved groups. However, continued reliance on traditional product designs, conventional financing methods, and standardized service delivery models has constrained the ability of microfinance banks to respond to diverse customer needs and compete effectively in a dynamic financial services environment. This study examined the effect of open-mindedness on the competitiveness of microfinance banks in Kenya, drawing its theoretical anchorage from Dynamic Capabilities Theory and the Open Innovation Model. The study adopted the positivist research paradigm and employed an explanatory research design, consistent with its objective of examining causal linkages among the study variables. The units of analysis and observation were microfinance banks and management personnel, respectively, with a population of 616 management staff. A two-stage sampling procedure combining proportionate stratified and simple random sampling was employed to select 243 management staff, from whom data were collected using a structured questionnaire. Frequency counts, measures of central tendency and measures of dispersion were used to summarise the data, while simple linear regression served as the primary empirical model. The findings established that open-mindedness had a positive effect on the competitiveness of microfinance banks. The study recommends that the Head of Finance and Strategy establish a framework that promotes receptiveness to new ideas and alternative perspectives, facilitates real-time customer feedback and co-creation of value, and incorporates customer insights and adaptive solutions into continuous improvements in processes, products, and services.
VL  - 12
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Faith Gacheri Kamandi

School of Business, Economics and Tourism, Kenyatta University, Nairobi, Kenya

Contact Email

http://orcid.org/0009-0005-8788-368X
Godfrey Muigai Kinyua

School of Business, Economics and Tourism, Kenyatta University, Nairobi, Kenya

http://orcid.org/0000-0002-9676-7630
Reuben Njuguna Kinyuru

School of Business, Economics and Tourism, Kenyatta University, Nairobi, Kenya

http://orcid.org/0000-0002-1117-7712

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Kamandi, F. G., Kinyua, G. M., Kinyuru, R. N. (2026). Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks. European Business & Management, 12(5), 100-114. https://doi.org/10.11648/j.ebm.20261205.12

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Kamandi, F. G.; Kinyua, G. M.; Kinyuru, R. N. Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks. Eur. Bus. Manag. 2026, 12(5), 100-114. doi: 10.11648/j.ebm.20261205.12

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Kamandi FG, Kinyua GM, Kinyuru RN. Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks. Eur Bus Manag. 2026;12(5):100-114. doi: 10.11648/j.ebm.20261205.12

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@article{10.11648/j.ebm.20261205.12,
  author = {Faith Gacheri Kamandi and Godfrey Muigai Kinyua and Reuben Njuguna Kinyuru},
  title = {Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks},
  journal = {European Business & Management},
  volume = {12},
  number = {5},
  pages = {100-114},
  doi = {10.11648/j.ebm.20261205.12},
  url = {https://doi.org/10.11648/j.ebm.20261205.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20261205.12},
  abstract = {The microfinance banking industry has contributed significantly to socioeconomic development at family, community, and national levels through financial inclusion, particularly by expanding access to financial services among traditionally underserved groups. However, continued reliance on traditional product designs, conventional financing methods, and standardized service delivery models has constrained the ability of microfinance banks to respond to diverse customer needs and compete effectively in a dynamic financial services environment. This study examined the effect of open-mindedness on the competitiveness of microfinance banks in Kenya, drawing its theoretical anchorage from Dynamic Capabilities Theory and the Open Innovation Model. The study adopted the positivist research paradigm and employed an explanatory research design, consistent with its objective of examining causal linkages among the study variables. The units of analysis and observation were microfinance banks and management personnel, respectively, with a population of 616 management staff. A two-stage sampling procedure combining proportionate stratified and simple random sampling was employed to select 243 management staff, from whom data were collected using a structured questionnaire. Frequency counts, measures of central tendency and measures of dispersion were used to summarise the data, while simple linear regression served as the primary empirical model. The findings established that open-mindedness had a positive effect on the competitiveness of microfinance banks. The study recommends that the Head of Finance and Strategy establish a framework that promotes receptiveness to new ideas and alternative perspectives, facilitates real-time customer feedback and co-creation of value, and incorporates customer insights and adaptive solutions into continuous improvements in processes, products, and services.},
 year = {2026}
}

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TY  - JOUR
T1  - Open-mindedness as a Microfoundation of Competitiveness of Microfinance Banks
AU  - Faith Gacheri Kamandi
AU  - Godfrey Muigai Kinyua
AU  - Reuben Njuguna Kinyuru
Y1  - 2026/10/31
PY  - 2026
N1  - https://doi.org/10.11648/j.ebm.20261205.12
DO  - 10.11648/j.ebm.20261205.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 100
EP  - 114
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20261205.12
AB  - The microfinance banking industry has contributed significantly to socioeconomic development at family, community, and national levels through financial inclusion, particularly by expanding access to financial services among traditionally underserved groups. However, continued reliance on traditional product designs, conventional financing methods, and standardized service delivery models has constrained the ability of microfinance banks to respond to diverse customer needs and compete effectively in a dynamic financial services environment. This study examined the effect of open-mindedness on the competitiveness of microfinance banks in Kenya, drawing its theoretical anchorage from Dynamic Capabilities Theory and the Open Innovation Model. The study adopted the positivist research paradigm and employed an explanatory research design, consistent with its objective of examining causal linkages among the study variables. The units of analysis and observation were microfinance banks and management personnel, respectively, with a population of 616 management staff. A two-stage sampling procedure combining proportionate stratified and simple random sampling was employed to select 243 management staff, from whom data were collected using a structured questionnaire. Frequency counts, measures of central tendency and measures of dispersion were used to summarise the data, while simple linear regression served as the primary empirical model. The findings established that open-mindedness had a positive effect on the competitiveness of microfinance banks. The study recommends that the Head of Finance and Strategy establish a framework that promotes receptiveness to new ideas and alternative perspectives, facilitates real-time customer feedback and co-creation of value, and incorporates customer insights and adaptive solutions into continuous improvements in processes, products, and services.
VL  - 12
IS  - 5
ER  -

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