Implementing innovative financial models in different cultures: A comparative analysis of China and Mexico

The purpose of this paper is to present evidence about cultural differences between Mexico and China, and analyze their significance when implementing an innovative financial model. Specifically, the authors analyzed the case of the Yunus model (or Grameen model), originally developed in Bangladesh and further implemented in China and Mexico.

This paper uses a comparative quantity study to test the cultural difference which affects the innovative financial model implementation. A materialism and credit overuse value scale (Ponchio and Aranha, 2008; Richins, 2011; Roberts and Jones, 2001) is applied to analyze cultural differences with a sample of 250 people in each country.

The results show that the survey responses are statistically significantly different in these two countries. The Mexican sample shows a greater affinity with luxury and bragging. The Chinese sample shows more responsibility toward credit. Recommendations for the implementation of the innovative financial model considering cultural differences are suggested.

Based on the survey results, gender equality, greater caution with young borrowers, financial education programs, and strict liability agreements to ensure credit repayment, especially for Mexico, are suggested, with the aim of enabling microfinance institutions to increase the successful implementation of the Yunus model in China and Mexico.

There are few existing cultural comparisons between China and Mexico. Therefore, one of the relevant contributions of this work is to shed light on the cultural differences of these two important emerging economies for future research. Additionally, the authors applied a materialism and credit overuse value scale developed to assess consumer behavior as a proxy for culture. The results are relevant for further usage of this scale as a tool to help adapt innovative financial models for application in other cultures.