CO-EVOLUTION OF BOARDS OF DIRECTORS IN MICROFINANCE ORGANIZATIONS: THE CASE OF BANCOSOL AND LOS ANDES

The mission and performance of an enterprise is the legal and strategic responsibility of the Board of Directors (BOD). For the BODs of microfinance institutions (MFIs) this task is even more challenging. This study investigates the connection between the composition and roles of BODs and organizational evolution. It builds on the experiences of BancoSol and Los Andes, two MFIs that pioneered microfinance in Bolivia. The findings support the notion that BODs evolve to fit the needs of organizations at different stages of industry and organizational evolution. While these results are not surprising, previous research has not shown the micro-dynamics involved in this co-evolution and thus their impact on board composition and roles.