Chapter 4: Bricolage Through Credit Cooperatives in Germany: A Historical Perspective

Bricolage through microfinance provides a pathway for the financial inclusion of the people at the bottom of the pyramid. German credit cooperatives or collective associations signify the importance of the social capital in facilitating the access to the credit at their door steps. The exclusion of the migrant women is the major concern for the people at the bottom of the pyramid. Both Haas and Raiffeisen are the formats of cooperatives that ensure unlimited liability for the members of the group and limited liability for the members facilitate access to the physical capital for the people at the bottom of the pyramid. Through the case study, the chapter method highlights that the organizational innovation serves as mediator between the resource bricolage, financial performance, and competitive advantage of the members at the bottom of the pyramid. This study highlights that various mass movements started for the emancipation of the poor at the bottom of the pyramid. Two major mass movements that were started for the emancipation of the poor include Hermann Schulze-Delitzsch, a former judge, giving rise to the cooperative institutional structure of German Union of German Cooperatives (Schulze-Delitzsch) and People’s bank based on the people’s savings and credit. In the conclusion study highlights that the Schulze-Delitzsch, as an institutional format failed due to the economic cycles and reasons, Raiffeisen failed due to the unlimited liability and maturity mismatching, with small duration savings being used to fund long term loans.