Harnessing knowledge ecology management perspective in green microfinance through critical discourse analysis

Microfinance institutions (MFI) have become a vital means for providing various types of financial services (such as loan facilities, savings accounts, and others) to individuals who do not have access to traditional banking services (Forcella and Hudon, 2014). Governments across various countries have advocated MFIs to help lower-income individuals and small business owners start or expand their businesses and manage their finances (Nugroho et al., 2017). Through poverty alleviation and enhancement of self-sufficiency among the citizens, MFIs also contribute to the development of the economy (Chirkos, 2014).

Increasing consciousness of the environment and a shift in favour of sustainable financial services have led to the development of a new subset of microfinance, i.e. green microfinance. The prime focus of green MFIs is to provide easy access to individuals and businesses involved in socially responsible activities (Archer and Jones-Christensen, 2011). This, in turn, aids in sustainable development and building a resilient and environmentally conducive society. However, to leverage this sustainable competitive advantage, knowledge management (Vo-Thai and Tran, 2024) and knowledge application aligned with government policy are required (Nguyen et al., 2024).

Green microfinance contributes to nation-building in several ways. First, green MFIs help mitigate the adverse impact of climate change by funding only those individuals and institutions that are involved in environmentally sustainable projects, such as organic farming, renewable energy, and sustainable forestry, leading to the reduction in carbon emissions (Aslam Mia et al., 2020; Lanzavecchia et al., 2021). Second, it provides an impetus for livelihood improvement by offering customized financial services, which can empower the masses and break their vicious cycle of poverty (Khan, 2014). Third, green microfinance fosters innovation and entrepreneurship by collaborating with small businesses and promoting new sustainable business methods using technology adoption and resilient business models (Chirambo, 2017). Such green innovations are accredited to knowledge flows because of a firm’s green activities within knowledge management (Xiong et al., 2024) and its ecology.

While the domain of green microfinance is at a nascent stage, the limited research in this area has investigated the outcomes of the firms supported by green MFIs and identified the factors that foster them in complying with sustainable, environment-friendly practices (Allet, 2013; Chiu, 2015). Additionally, studies have explored the possibilities of scaling green microfinance activities by delving into the opportunities and challenges (Huybrechs et al., 2019). Despite the gradual growth in the green microfinance literature, several challenges and gaps need attention. Firstly, there is no standardized methodology for measuring the impact and outcome of green microfinance activities (García-Pérez et al., 2020), and most of the evaluations undertaken by firms are based on self-reported data, which can be largely biased (Prince et al., 2020). Secondly, the impact of green microfinance activities can be witnessed in the long run. Therefore, it is important to identify the factors that can act as barometers for sustainable development, which remains missing (Tran et al., 2020). Thirdly, the impact of green microfinance is likely to vary from region to region (García-Pérez et al., 2020). Therefore, it is essential to recognize the context or region-specific elements that can be improved for advancing sustainable development. Fourthly, the challenge of scalability and integration of green microfinance with the strategies of the firm is yet to be explored, which, if undertaken, can lead to the enhanced effectiveness of green microfinance as a tool for economic and social development (Huybrechs et al., 2019). Finally, to achieve this strategic integration, the missing knowledge-based view is required to assess the credit behaviour of small and micro enterprises to decide if they need more formal or informal information channels to provide loans (Liu et al., 2022) to the target communities.

Based on the prior literature and research gaps, examining and exploring the various dimensions of green microfinance is pertinent to advance the discussion and contribute to this domain. Further, the ecology theory of knowledge management articulates the flow of knowledge for human interactions and learning communities. Through its theoretical lens, it intends to explain green microfinance’s aims & scope drivers, outcomes, and prospects.

The current study uses a qualitative method of critical discourse analysis (CDA) to answer the research questions below:

While previous studies have focused on various quantitative aspects of green microfinance (Atahau et al., 2021; Beisland et al., 2022), this paper aims to enhance the understanding of the concept through a qualitative approach and spell out the hidden dynamics of the domain which could not be explored through previous quantitative analysis (Jacobs and Tschötschel, 2019). By doing so, this study would be a pioneer in exploring green microfinance through a qualitative discourse through the knowledge ecology management (KEM) theory and shall offer valuable contributions.

Primarily, the study shall decipher the power dynamics between various green microfinance stakeholders and help them understand the initiatives they took to advance their objectives. This helps improve any shortcomings that paved the way for them to achieve their objectives smoothly. Subsequently, the study shall help integrate the dual objectives of poverty alleviation and environmental sustainability by directly linking the two and suggesting the activities that can be undertaken. Furthermore, the study shall also throw light on the perceptions and attitudes of the beneficiaries and how well green microfinance has acted as a tool to create awareness among the masses about its benefits and in achieving the goal of financial inclusion through addressing the knowledge management dilemmas, e.g. bridging the demand-supply gap in rural financial knowledge within the dimension of knowledge ecology (Yang et al., 2022). In addition, the study shall discover the future scope in the domain of green microfinance, along with the steps that policymakers can take to further the goal of sustainable development through green microfinance.

In the following sections, we review the literature and background on green microfinance and its alignment with KEM, followed by the details of the research methodology employed in the study. We then highlight the results of our analysis, followed by discussions on the findings, providing justifications for them, and laying down a conceptual framework. The last section ends with policy implications, conclusions, limitations, gaps, and questions for further research. This study is novel attempt to align KEM perspective to the aspects and outcomes of green microfinance.

The globe has been witnessing a massive debate on transforming the context of sustainability with the help of green finance, and the same has been promoted by the United Nations Sustainable Development Goals (United Nations, 2015). Green finance fosters environmental objectives and caters to financial and social goals (Lee and Lee, 2022). Moreover, environmental management and control are the core of propagating green microfinance activities (Arrive and Feng, 2018). The relationship between environmental management and financial performance has been explored from various angles (Ayayi and Wijesiri, 2022; Velte, 2023; Li and Ramanathan, 2020). Prior studies have looked into the cultural (Esposito et al., 2022), human rights (Idemudia et al., 2020) and financial disclosure regulation (Cosma et al., 2023) aspects concerning the environment and social performance.

Green finance has emerged as a vital tool for promoting financial products and services that can enhance the quality and quantity of environmental sustainability (Verma et al., 2023). The broader perspective is to enhance sustainable investments and stimulate green initiatives by the firms, which shall lead to achieving social, environmental and economic objectives. This would also intensify the quantum of environment-friendly practices in the community (Zhang et al., 2021). One of the integral elements of green finance is microfinance, which focuses on providing various kinds of financial services and loans to needy individuals and small institutions for their business growth and better economic outcomes. These MFIs act as facilitators for achieving sustainable development goals (United Nations, 2015).

By ensuring financial inclusions, green MFIs aim to encapsulate both economic and environmental goals (Sohail and Din, 2023). Considering that these services are knowledge-intensive and innovative institutions and firms are pivotal in a knowledge-driven economy (Duan et al., 2023), such MFIs should align knowledge management perspectives into their activities with a thorough understanding of KEM. The existing relationship between financial knowledge and the credit practices of small and medium enterprises can be harnessed for the expansion of green microfinance and to address the issues of credit constraints and low participation to further financial inclusion (Liu et al., 2022).

Green microfinance has often been used to reduce environmental degradation as funds are provided to institutions that are socially and environmentally responsible (Allet and Hudon, 2013). For instance, in the Indian context, deforestation has declined due to access to green microfinance, and the quantum of afforestation has significantly improved. Moreover, it also leads to providing necessary funds for renewable and clean energy services (Barua and Aziz, 2022) and the creation of shared value in social enterprises that address not just the societal aspects but also the environmental concerns as a result of their enhanced knowledge absorptive capacity (Campos-Climent and Sanchis-Palacio, 2017).

Green microfinance provides funds and ensures financial strength and resilience to individuals and institutions by mitigating risks (Ullah and Khan, 2017). Research evidence suggests that borrowers of green microfinance funds are highly aware of environmental issues and inclined towards undertaking sustainable activities as well (Miled and Landolsi, 2023). Knowledge elicitation on climate matters by including tacit stakeholder inputs (Nikas et al., 2017) can also contribute to the green microfinance ecosystem.

Studies have also advocated a direct and positive linkage between economic development and environmental conservation (Agboola et al., 2021). Green microfinance programs are also linked to the promotion of bio-diversity land use as these are involved in a combination of activities such as credit facilities, technical supervision, and economic incentivization (Bastiaensen et al., 2015), as has been witnessed in the case of such programs in Nicaragua. Climate change is a cause of global concern, and financial institutions, along with other non-financial organizations, are doing their best to tackle these challenges by offering much-needed financial products and services to those who support the agenda of environmental protection (Park and Kim, 2020).

Microfinance has long been recognized as a powerful tool for empowering women in developing countries. It facilitates women’s small-scale enterprises’ access to capital, technology, and other resources.

Green microfinance has seen a new dimension of growth concerning the relationship between green energy and women’s empowerment through a stream of research studies (Hermawati et al., 2023; Atahau et al., 2021). These studies have found that access to funds through green microfinance has led to steady growth in the degree of women’s empowerment and a fall in gender inequality (Atahau et al., 2021). Since there exists an ample number of small-scale organizations as well as self-help groups that are owned and controlled by women in rural areas, access to funds acts as a catalyst for their independent growth and development. Women often use these funds for their business activities and to install clean and renewable energy, fostering environmentally sustainable activities (Manko and Watkins, 2021). These funds are substantially granted for purchasing sustainable machines such as solar panels, wind turbines, water harvesting, water filtration systems and more (Jindo et al., 2023; Chirambo, 2019). These large-scale benefits can also be seen in improved living standards and health conditions.

This evidence is sufficient to highlight the critical role played by green microfinance in improving societal and sustainable development (Pal et al., 2021). Still, further exploration is required to identify the untapped potential of these initiatives and remove any obstacles in promoting sustainable business activities.

The ecology perspective of knowledge management suggests the management of personal, formal, and informal sharing of information across actors, organizations (Värk and Reino, 2020) and communities. Green MFIs emphasize more formal channels of knowledge sharing among their employees and departments due to the positive impact of knowledge management on organizational performance (Matawali, 2018). Effective processes for sharing the vision and cooperation in micro-enterprises can help reduce the understanding gap about high-tech microfinance while enhancing the explicability of tacit knowledge, leading to cognitive trust and better risk management (Rowe et al., 2010). MFIs, being the entities of collaboration, are leading microfinancing service providers that require inter-organizational knowledge sharing to achieve their strategic objective of sustainable development (Taifi and Gharbi, 2016).

The imperfect knowledge environment consisting of weak knowledge sharing, poor knowledge updation process and slow knowledge flows are the issues in accessing and disbursing rural finance that can be addressed with the help of KEM (Yang et al., 2022). Since microfinance is a crucial source to fulfil the financial needs of micro-enterprises, it requires innovative ways such as artificial intelligence (AI) for effective knowledge sharing and management among their stakeholders (Nurjannah et al., 2023). To maintain the sustainable competitiveness of the financial sector, business process reengineering is explained by adaptability, knowledge creation and sharing aspects of knowledge management in MFIs (Nkurunziza et al., 2018). Knowledge management aspects such as learning methods, learning support and learning category can impact microfinance lending through formal MFIs rather than leaving the asset-less borrowers at the mercy of loan sharks charging high interest rates (Thampradit and Fongsuwan, 2014). Hence, the management of explicit and implicit knowledge under KEM, where the term ecology refers to the information systems drawing heavily on social networks for creating, sharing, using and managing knowledge and information (Saeedi, 2018), can help MFIs to perform on the financial indicators, social indicators (Akter et al., 2021) as well as environmental indicators. Thus, KEM can be crucial in knowledge dissemination by creating stakeholder awareness.

This research aims to gain a more comprehensive understanding of green microfinance by establishing a broader perspective on the subject. The study focuses on answering various questions related to green microfinance, which can help stakeholders make better decisions and formulate policies.

CDA has been used to address the proposed research inquiries and accomplish the research objectives. Simply put, CDA is a scholarly instrument that facilitates the revelation of the latent intentions underlying speeches, news articles, videos, and other forms of media publications (Machin and Mayr, 2023; Petintseva, 2022). In addition, it facilitates an exploration of those complex elements that would otherwise remain undetected in a typical situation (Jain et al., 2024). While its initial purpose was to analyse political speeches and debates, CDA has since been applied to numerous disciplines, including health (Yu et al., 2022), finance (Evans et al., 2021) and marketing (Eriksson and Kenalemang, 2023), among others, to conduct a variety of analyses.

The justification for selecting this methodology is that the field of green microfinance is in its infancy, and language-based text analysis will be the most appropriate approach to comprehend the diverse dynamics of the subject (Fairclough, 2023) while at the same time avoiding researcher bias (Butson et al., 2024). Furthermore, given the extensive social and economic ramifications of green microfinance, it can be used to illuminate social discourses that support the development and implementation of policies that can foster financial inclusion (Gleasure et al., 2019).

CDA is a practical methodology that facilitates discourse employing linguistic analysis of recordings and texts. When selecting the data, we relied on three primary sources – newspaper articles, policy documents and videos. Compared to conventional media sources, these elements facilitate the dissemination of information more rapidly (Mitchelstein and Boczkowski, 2009). Furthermore, policy documents and newspaper articles offer a written discourse that can be used to analyse narratives, language and the structuring of texts (Mendes et al., 2022). Applying these would facilitate examining word selection, metaphors and additional aspects to reveal concealed frameworks (Zibin, 2022). Similarly, examining the videos helps discern the speech intonation, non-verbal signals and sound effects, among other elements, to decipher the overarching message and discourse (Joye and Maeseele, 2022).

The methodology used for the analysis was inductive, as the data collected was qualitative. To accomplish the research objectives, we employed the inductive content analysis method to decipher the meanings, concepts and constructs derived from the categorization of the extensive data set (Sheydayi and Dadashpoor, 2023; Lookingbill, 2022). The inductive content analysis was carried out utilizing the Gioia approach (Gioia et al., 2012), which places significant importance on the production of inductive codes that may prove beneficial in deriving meaning and data from the analysis of unstructured texts (Magnani and Gioia, 2023). The approach, which has been extensively integrated with grounded theory, has been the subject of numerous recent studies in various fields (Dhir et al., 2023).

The data for this study were obtained from widely circulated media outlets between November 2019 and September 2023. The selection of 2019 as the cutoff time is predicated on the notion that the concept of green microfinance attracted the attention of the scholarly community and society at large during this time (Zaby, 2019). The information was obtained from various news sources, including prominent institution websites (NASDAQ, Ernst & Young, Deloitte), news platforms, and newspaper articles (Live Mint, Economic Times, The Independent and more). Policy documents and reports from reputable organizations such as the United Nations Environment Programme, International Science Council and other similar organizations were gathered. Data was collected from diverse sources to obtain a more comprehensive range of information and viewpoints from the previous two years (2022 and 2023). The inquiry was conducted with the primary keyword “Green Microfinance,” which retrieved 178 files, including policy documents/reports, videos and newspaper articles.

To conduct the data analysis, the preliminary step was to pool the data in a folder where a set of 178 files were collated. These files included media reports, articles, videos, blogs and other similar sources. Individual coding was done for each of the sample files conducted independently. A separate Excel sheet was also maintained, and the bibliographic details of these files were saved for cross-verification. After organizing these demographic details, the video files were transcripted and converted into a text file for interpretation purposes (Jacobsen et al., 2021). On similar lines, the media articles and blogs were also converted into Word files so that they could be independently read and themes could be identified. The past literature warrants a systematic and scientific approach for identifying the themes in the CDA; thus, Gioia’s approach was chosen for the same (Magnani and Gioia, 2023; Murphy et al., 2017). Two authors read these files word by word and allotted independent codes to the themes and elements they found relevant to the research questions. Once the independent coding was conducted, the entire team held a brainstorming and discussion session to finalize the suitable themes based on the understanding of the literature. Multiple discussions followed involving a few experts in the domain to validate the generated themes (Patrick et al., 2011). After detailed discussions and finalization, 75 open codes were identified. To establish inter-coder reliability and validation, these finalized codes went through the validation process by the experts through Zoom meetings. These open codes were studied in detail for classification, leading to 18 axial codes (Schreieck et al., 2022). In the final stage of analysis, these 18 axial codes led to the determination of four aggregate codes related to the study’s research questions (Rheinhardt et al., 2018; Pratt et al., 2020). Figure 1 provides a summary of the research methodological steps that have been undertaken to conduct the study.

Through analysing the videos, policy documents, and news articles, we sought answers to the four research questions: RQ1. What are the aims and scope of green microfinance within the ambit of knowledge ecology management? RQ2. What are the drivers of green microfinance complemented by knowledge ecology management? RQ3. What are the outcomes of green microfinance as explained by knowledge ecology management? RQ4. What are the prospects of green microfinance as aligned with knowledge ecology management?

The analysis was conducted in three stages: identifying first-order constructs, categorizing them into second-order constructs and creating aggregate coding categories. We derived each aggregate coding category using first and second order constructs. Furthermore, theoretical linkages of KEM theory with each of these aggregate dimensions of microfinance and their corresponding axial codes are presented, refer to Table 1. Moreover, this section presents the findings from our analysis, illustrated through data structure diagrams (Figures 2–5).

In business, knowledge management by transforming data into information and information into knowledge is the quintessential aesthetic; however, knowledge ecology is human-centric in nature and argues for the strategic use of information in a networked information-driven organization (Petrides and Guiney, 2002). To attain sustainable practices, eco-friendly project funding, renewable energy investments and low-income community focus, MFIs can harness knowledge ecology for sustainable development. Refer to  AppendixTable A1 to find the theoretical linkage of KEM to the aims and scope of green microfinance, along with the mapped quoted text extracted from the sample data files.

The first aim of green microfinance is to promote sustainable practices. While the scope of green microfinance is still nascent, it builds the power of the global spread of MFIs to promote sustainable practices (García‐Pérez et al., 2018) that improve the lives of people with low incomes. To ensure the smooth and efficient undertaking of sustainable business practices by the green MFIs (Ab Rahman et al., 2015), the incorporation of low-carbon pathways (Dowla, 2018), integration of pro-climate strategies (Budiman et al., 2016), promoting climate resilience (Chirambo, 2017) and developing green products and services (Allet and Hudon, 2013; Awan et al., 2021) have become essential components.

MFIs play an important role in providing financial assistance (Corrado and Corrado, 2017) and funding to take forward green projects specifically for small businesses, small farmers and vulnerable societies among others, which lack the proper financial strength to innovate (Pansera and Owen, 2013) and build green products and services (Abdur Rouf, 2012). This financial assistance empowers the borrowers to invest in sustainable production processes such as renewable energy solutions (Srinivasan, 2007), eco-friendly products and services (Teki, 2016) and green infrastructure (Brears, 2022). Moreover, green microfinance contributes to safeguarding biodiversity (Mandel et al., 2009) through various initiatives such as decarbonization, funding reforestation projects and global waste management.

Investments by microfinance in renewable energy facilitate the development of green and sustainable energy practices, further reducing reliance on fossil fuels, mitigating the negative climate change (Srinivasan, 2007; Chirambo, 2017), and stimulating economic growth as well as employment generation in the clean energy sector. Renewable energy investments are encouraged due to a variety of factors, such as periods of strengthened economic growth and high fluctuations in fossil fuel prices (Gatto, 2023), which have raised issues about energy security. Furthermore, the introduction and promotion of financial products such as biomass energy grants (Rippey, 2011), sustainable energy stocks (García-Pérez et al., 2017) and clean energy stocks (Carillo, 2013), among others, provide opportunities for investors to invest in green investments.

One of the significant aims driving green MFIs is the development and encouragement of employment or empowerment for vulnerable populations, underprivileged villages and low economies, as well as ensuring gender diversity (Ullah and Khan, 2017). This inclusiveness ensures that the benefits of adopting green practices are not limited to the higher classes but spread across communities, leading to sustainable living for all and welfare enhancement (Tchouassi, 2011). Furthermore, green MFIs also promote village sustainability programs (Atahau et al., 2020) by providing financial assistance and awareness sessions on how to have a sustainable lifestyle along with economic well-being (Uddin et al., 2021), thus acting as catalysts for economic welfare and empowerment.

To push green microfinance, MFIs must generate and leverage their stakeholders’ awareness levels on climate change, green policy incentives, adaptation of sustainable technologies, alternative energy demand and government policy and support. Here, applying information technology in collecting, managing and disseminating information to add value in information exchange is an innovative way under knowledge ecology (Petrides and Guiney, 2002). This engagement with digital technologies for information sharing in a social network is assumed an affordance under Gibson’s ecological perspective to knowledge management (Jarrahi et al., 2019), which can help the MFIs to create and leverage the awareness levels of its clients. Refer to  AppendixTable A1 to find the theoretical linkage of KEM to the drivers of green microfinance, along with the mapped quoted text extracted from the sample data files.

Many incidents, such as rising temperatures, weather-related uncertainties, droughts, floods, forest fires and heat waves, contribute to climate risks (Dowla, 2018). These risks have a heightened impact on MFI clients vulnerable to climate change (Chirambo, 2017) as they have limited resources to protect themselves from such uncertainties. Moreover, their income is dependent on seasonal weather, making them insecure and unstable during such climate change, pushing them further into poverty. Green MFIs are needed to facilitate awareness and financial aid to these communities (Römer and Musshoff, 2017), combat climate risk, mitigate pollution and promote waste management (Abdur Rouf, 2012).

The green microfinance program is developed to take forward the concept of being biodiversity-friendly through various financial tools such as credit provision, incentives to the green industry (Allet and Hudon, 2013), and subsidies to encourage green innovation (Moser and Gonzalez, 2016), providing technical assistance (Garcia and Lensink, 2019), executing carbon taxes to industries generating high pollution, and conditional economic incentives (Sadiq et al., 2023). These drivers of green microfinance differentiate it from microfinance, thus allowing a focus on financial assistance to communities to undertake green practices.

Green microfinance provides a secure environment to research and develop technical advancements combating sustainability issues (Pollinger et al., 2007). Affordable loans allow firms and individuals to install clean production technologies (Hsu et al., 2021), such as solar panels and hydropower plants. It also supports initiatives and practices leading to the development of sustainable smart cities (Papa and Rossi, 2022), such as waste management, using biomass in cooking, and intelligent transportation systems (Jeyasheela Rakkini and Geetha, 2021). Scaling these green technologies through MFIs’ initiatives may allow economic growth and resilience in the future (Kang et al., 2019) by addressing various environmental problems (Ashfaq et al., 2023).

The public’s awareness is increasing regarding the utilization of alternative energies such as solar (Khan et al., 2019), biogas and waste-to-energy (Rao et al., 2009). With this awareness comes the demand for such alternative energies (Srinivasan, 2007). Since these are expensive or unapproachable for everyone to consume, they often lead to the usage of unsustainable energies (Allet, 2013). Green MFIs, with their vast network, focus on bringing such renewable energy projects into existence through financial support and guidance. Partnering with various organizations (Reeves and Sabharwal, 2013), MFIs have the power to set up biogas plants, create solar-powered engines and expand hydroelectric projects.

The initiatives to promote sustainable development and green practices are only possible to execute when the government provides stable regulatory support (Purkayastha et al., 2020). Central banks, government and financial regulatory authorities are accountable for undertaking major investment decisions, and with the absence of stricter ESG rules, promoting sustainable green finance becomes a crucial step towards green transition (Huybrechs et al., 2019). However, stakeholder pressures and regulatory evolutions are leading to ESG integration in bank credit departments and the need for a knowledge-based, sustainability-oriented strategic approach to financing (Saviano et al., 2024.)

By collaborating with MFIs and building a supportive environment (Brears, 2022), the government may mitigate the issues of climate change (Chirambo, 2017) and environmental degradation (Allet and Hudon, 2013). Investment in research and development in sustainable technologies (Ghani et al., 2018) becomes an important step towards this growth. Furthermore, the government may support the MFIs by providing public awareness programs on a mass level, reaching each tier of society. One example is making the public aware of the benefits, incentives and facilities that MFIs provide for undertaking sustainable practices.

Knowledge management is a social process for business improvement. Knowledge supersedes information and is explicit when codified, e.g. rules and guidelines, and implicit when it cannot be codified, e.g. experience (Tzortzaki and Mihiotis, 2014). The outcomes of green microfinance, namely., energy efficiency improvement, socio-economic upliftment, natural resource conservation, pollution control measures and agricultural productivity, can be enhanced through knowledge of ecological management. This experience-based knowledge is personalized, and when shared directly in an interpersonal manner across hardwired social networks, it enhances business outcomes. The size, the locus of the forum, and the diversity of social networks are the qualifiers to access the knowledge resources. For example, periodic meetings can be held for experience sharing among executives in informal ways to learn from each other (Hahn and Subramani, 2000) to enhance green microfinance outcomes. To find the theoretical linkage of KEM to the outcomes of green microfinance, along with the quoted text extracted from the sample data files mapped to the corresponding axial codes, refer to  AppendixTable A1.

The provision of low-cost micro-loans (Kusum Mukherjee, 2014) has allowed individuals, firms, entrepreneurs, and diverse communities to implement energy-efficient infrastructure, reduce the usage of fossil fuels and invest in energy-saving projects (Baird et al., 2017). Moreover, the awareness provided by the MFIs allowed the public to respond to incorporating green practices in their day-to-day operations, thus making them a source for decentralized energy generation.

Green microfinance is a powerful instrument to achieve positive societal impacts by providing access to capital in low-income economies (Hermes, 2014), which can improve the livelihoods of populations at the bottom of the pyramid, enabling them to build assets, increase incomes and reduce their vulnerability to economic and environmental stress (Cull and Morduch, 2017). With loan facilities at cheaper rates, MFIs have uplifted various communities by providing employment and empowerment to vulnerable low-income families, empowering women and generating income for neglected communities with the least resources (Pretes, 2002). This has further allowed access to renewable energy and undertaking green practices such as cleaner cooking and heating solutions.

Funding projects that allow the preservation of natural resources (Murali, 2006) is one of the prime goals of green MFIs. By providing financial assistance to conserve natural resources such as water resource management (Suvarna, 2006), ecosystem, biodiversity (Araya and Christen, 2004), and healthy sustainable fishing, green MFIs attempt to bring about positive changes in the environment such as enhanced livelihood, reduced climate change effects and lowered environmental degradation (Arora and Singh, 2022).

Green microfinance has the power to reduce industrial pollution emissions (Abdur Rouf, 2012) by funding industrial structure upgradation and green technology innovation (Kang et al., 2019) showcasing it is more effective in protecting the environment while bringing economic growth. It has helped develop sustainable transport solutions (Jeyasheela Rakkini and Geetha, 2021) and urban green spaces, leading to the establishment of smart cities (Papa and Rossi, 2022). Moreover, it allows erosion and sediment control in agricultural activities (Lal and Israel, 2006) by promoting innovation in agricultural practices.

Agriculture, the primary income source for many developing nations, has become a paramount area of operation for MFIs (Lal and Israel, 2006). MFIs, through financial assistance, awareness programs, and technological education, bring about a massive difference in the lives of small-scale farmers (Dossou et al., 2020). It helps bring innovation in agroforestry practices, preserving soil health and fertility, and farming drought-resistant crops (Dhakal, 2016). MFIs encourage farmers to undertake organic farming (Harper, 2007), leading to reduced chemical usage and more green agricultural practices.

The knowledge ecology in organizations is a combination of humans, technology, values, practices, and organizational environment that defines the structure of knowledge, value addition and distribution (Chen and Liang, 2016). The prospects of green microfinance, i.e. digital finance collaboration, emerging market expansion, innovative financing models and environment-centric policy, can be leveraged through KEM in a MFI. These interacting individuals, organizations and communities in their given environments are an extended reference to ecology as a metaphor in knowledge management ecology (KME) (Cheng and Leong, 2017). Hence, maintaining a healthy knowledge ecology through the interaction of these elements is important for knowledge management in an organization (Chen et al., 2010), aiming to advance green microfinance. Refer to  AppendixTable A1 to find the theoretical linkage of KEM to the prospects of green microfinance, along with the mapped quoted text extracted from the sample data files.

Green microfinance has enabled access to financial products and services (Jalil, 2021) that promote sustainability. Moreover, it has allowed the streamlining of repayment processes for green projects, making it easier for borrowers to opt for micro-loans (Thomas and Hedrick-Wong, 2019). Further, by harnessing the power of blockchain for transparency and machine learning for customization (Jeyasheela Rakkini and Geetha, 2021), MFIs can build an effective payment and banking system apart from developing innovative green products through nurturing knowledge-based employee capabilities (Biscotti et al., 2018).

As MFIs build a more green and inclusive financial system, the most fruitful progression is observed in emerging markets (Berger, 2000). Green microfinance has allowed people from emerging nations to participate in green initiatives and bring eco-friendly solutions to their environmental challenges (Jones, 2006). Moreover, the availability of loans and financial assistance in these economies has built a local capacity for small-scale entrepreneurs (Omoro and Omwange, 2013) to operate at a much larger scale and build a bigger production plant through sustainable means.

Various innovative blended funding models (Casasnovas and Chliova, 2020) are working in MFIs, enabling individuals to invest in sustainable projects with ease of payment. One such example of these financial models is the Pay-as-you-go (PAYG) model (Guajardo, 2021), where the companies allow rural and low-income communities to access modern clean energy solutions. Similarly, crowdfunding for green projects (Baird et al., 2017) has widened the funding opportunities for entrepreneurs to build green projects (Hermawati et al., 2023). Moreover, investors can invest in green bonds or sustainable stocks (Clapp and Pillay, 2017) through MFIs, building a more sensitized community towards sustainable development and a greener world.

To achieve a broader spectrum of market share, MFIs must collaborate with environmental NGOs, government agencies and other organizations to work towards the same goal of achieving a greener tomorrow (Tanin et al., 2019). These collaborations will allow a widened spread of innovations and opportunities for the right targeted population of low-income households. Furthermore, there is a need to technically educate low-income economies and sensitize them about ecological concerns, allowing them to understand and move towards green production systems (McGuire, 1999) and green product innovation (Khan et al., 2021). MFIs promoting environmental-centric policies (Nugroho et al., 2017) should also set standards for green projects and develop eco-agreements with global institutions for greater impact and economic growth.

With the government and policymakers fostering the objective of financial inclusion with the help of MFIs, the need for a more specific framework and sustainable financing has increased the dimensions of green microfinance (Mushtaq and Bruneau, 2019). This has led to research being conducted in the domain of green microfinance. However, the same is still considered an under-researched area (Jayaram and Singh, 2020), especially from the perspective of KEM. In this study, we conducted a CDA to answer various research questions with the help of 178 data files comprising videos, news media articles and policy reports. The broad objectives of the study were the identification of the aims and scope of green microfinance (RQ1), the prominent drivers of green microfinance (RQ2), the expected outcomes of green microfinance (RQ3) and the major prospects of green microfinance (RQ4) as aligned to the KEM under the knowledge management theory.

For the first research question, the study identified four prominent aims and scopes under green microfinance: sustainable practices, eco-friendly project funding, renewable energy investments and low-income community focus. For instance, the primary aim of green microfinance is to ensure that firms follow practices that lead to minimum environmental destruction (Uddin et al., 2021). This can be achieved by promoting renewable energy use and waste management. Similarly, green microfinance is also directed towards providing funds to entities investing in sustainable and environment-friendly ventures for long-term growth (Sadiq et al., 2021). These institutions also take major initiatives towards fostering the usage of renewable energy sources such as solar and wind energy (Chirambo, 2020) since implementing such practices would automatically reduce carbon emissions and ecological footprint. In the past, multiple dimensions such as diversity effects and alliances (Meschi and Norheim‐Hansen, 2019), corporate governance (Muktadir‐Al‐Mukit and Bhaiyat, 2023) and supply chain decarbonization (Hettler and Graf‐Vlachy, 2023) have been linked to the reduction of carbon emission. The final aim and scope have been derived from building MFIs linked to providing finances to individuals in the underprivileged sections of society (Bharti and Malik, 2021). Access to financial services will further promote the mission of enhancing financial inclusion and financial literacy (Lyons and Kass-Hanna, 2019). Here, human-centric KEM (Petrides and Guiney, 2002) has a prominent role to play by bridging the financial knowledge gap in the network inside and outside the organization, e.g. rural populations (Yang et al., 2022).

The second research question identified key drivers of green microfinance: climate change awareness, green policy incentives, sustainable tech advancements, alternative energy demand and government regulatory support. The individuals and various other stakeholders have become highly aware of the harmful effects of climate-based changes (Mapfumo et al., 2015), which puts pressure on MFIs to take necessary actions in this regard. At the same time, the government is initiating measures that can promote environmentally sustainable activities through various policy actions such as tax concessions and subsidies (Zatti, 2020). These act as a prominent catalyst driving green microfinance activities. The major bottlenecks for complying with sustainable practices were manual workload and monitoring tasks (Rane, 2023). However, with the advancement of technology, all of these can be conducted with the help of machines for which these MFIs provide financing. KEM can contribute innovatively to this information exchange through technology (Petrides and Guiney, 2002) across the MFI’s social networks (Jarrahi et al., 2019).

Furthermore, the increased demands for alternate energy sources have created requisite financial instruments offered by these institutions, further driving the financing of various activities (Qadir et al., 2021). Moreover, the government is also acting in the best interest of these firms/institutions by providing necessary regulatory support that can motivate the firms to promote green financing (Falcone, 2020).

The third research question was aimed at exploring the various outcomes desired out of the green MFIs, and they were found to be energy efficiency improvement, socio-economic upliftment, natural resource conservation, pollution control measures and enhanced agricultural productivity. When firms are established in any economy, they direct their efforts toward achieving specific goals and outcomes, and one of their major expectations is that they ensure energy efficiency (Manko and Watkins, 2021). The MFIs provide funding to those enterprises that follow an environmentally friendly production approach (Aslam Mia et al., 2020), thus leading to energy efficiency in the long-run. Since most of this funding goes to underprivileged borrowers, it also uplifts the disadvantaged sections of society by providing them a source of livelihood (Agarwala et al., 2022). Here, knowledge management, a social process (Tzortzaki and Mihiotis, 2014), helps to enhance business outcomes (Hahn and Subramani, 2000) of green microfinance through sharing knowledge in social networks.

The degradation of the environment is leading to the devastation of flora and fauna. MFIs also contribute to the conservation of resources by avoiding the usage of fossil fuels and various other non-renewable resources (Udeagha and Ngepah, 2023). By providing funding for agricultural activities, such that farmers can make use of new high-yielding innovative products, agricultural productivity is also enhanced as one of the outcomes (Nakano and Magezi, 2020), and measures towards controlling pollution in the environment are also undertaken by preventing the usage of instruments which aggravates pollution (Zhou et al., 2023).

The fourth research question focused on identifying prospects that can be explored in the future and that can be beneficial in further promoting green MFIs supported by knowledge of ecology management. The analysis helped us identify four prominent themes: digital finance collaboration, emerging markets expansion, innovative financing models and environment-centric policy. The world is witnessing a technological revolution where AI is making every transaction effective and efficient (Tyagi et al., 2020). In the same parlance, instruments using such technologies can be adapted for further improvements in the service in the domain of green microfinance.

Though the MFIs are widely appreciated for reaching the economically weaker sections of society and promoting financial literacy, there is further scope for expanding markets and reaching broader markets (Tanin et al., 2019). The existing financing models need further development by integrating innovative financial instruments and models that can provide ease in financing (Huybrechs et al., 2019). These models could incorporate novel instruments such as green bonds and loans. The government can further take measures to enhance the degree of environment-centric policy, which can be linked to the financing services by these institutions (Temesgen, 2021). A healthy knowledge ecology (Chen et al., 2010) enhances the interaction between individuals, organizations and communities (Cheng and Leong, 2017) to advance green microfinance.

Finally, through the application of KEM knowledge-based view on human interactions and learning communities in and outside the organization approaches microfinance credit advancement and MFI’s strategic view to explain the aim, scope, drivers, outcomes and prospects of green microfinance through its theoretical lens. Refer to  AppendixTable A1 to find the theoretical linkage of KEM to the aims and scope, drivers, outcomes and prospects of green microfinance, along with the mapped quoted text extracted from the sample data files.

The conceptual framework depicted in Figure 6 represents the thematic discourses undertaken to uncover the elements that play a crucial role in achieving valuable outcomes of green microfinance.

The three major components of the framework are a) the propellers that push the activities of green microfinance by the MFIs, b) the ambit of activities that have to be undertaken, and c) the resultant consequences that facilitate sustainable growth and development. The framework further encompasses environmental concerns and societal demands, which further reinforce the scope of green microfinance activities.

The drivers, such as awareness of climate change, green policy incentives, sustainable technological advancements, demand for alternate energy and regulatory support by the government, encourage MFIs to follow sustainable practices towards the environment Atahau et al., 2020). These drivers also help firms promote environmentally friendly machinery and raw materials, which will help reduce carbon emissions (Böttcher and Müller, 2013). Moreover, the elements of environmental concerns related to pollution, carbon emission and resource depletion further reinforce firms’ need to adopt sustainable activities (Chevrollier et al., 2023). The firms have to comply with such environmental aspects for their survival in the long run. Furthermore, the growing consciousness among the various stakeholders enhances their expectations from the institutions (Chowdhury and Shumon, 2020). Consumers prefer financial services from firms that consider the environment and showcase commitment towards sustainability by reducing carbon emissions (Lewandowski, 2017; Brouwers et al., 2018).

Based on these prominent drivers, the scope of activities by MFIs is enlarged, and firms are inclined to promote more and more such activities. The primary scope of green microfinance activities extends to investments in renewable energy, eco-friendly projects, sustainable practices and a focus on low-income communities (Zhang et al., 2023). MFIs provide financial support for using renewable-based solutions such as financing solar power plants and small-scale hydropower projects. They also promote many eco-friendly initiatives such as organic farming and waste disposal. The basic premise of green microfinance has always been focused on providing low-cost funding to the underprivileged and low-income earnings communities (Cunha et al., 2021). These loans are provided on the condition that the funds shall be used to promote sustainable activities.

The rationale for advocating these sustainable activities is clear, and they would undoubtedly lead to consequences such as achieving energy efficiency in the operations. Since the firms that receive funding use pro-environment machines and equipment, it shall also lead to conserving natural resources (Kautto, 2006). With the conservation of natural resources, the pollution level shall be mitigated. This shall further improve agricultural productivity as low pollution would cause minimal crop impact (Adegbeye et al., 2020). The improved level of agricultural productivity shall provide better standards of living, which would propagate the socio-economic upliftment of the communities (Mukhlis et al., 2022). The framework highlights that the outcomes are interrelated to each other as they amplify each other for better and productive overall outcomes enhanced through KEM. Refer to  AppendixTable A1 to find the theoretical linkage of KEM to the aims and scope, drivers, outcomes, and prospects of green microfinance, along with the mapped quoted text extracted from the sample data files.

The theme of green microfinance is still in the development stage, with limited research undertaken in this domain (Allet and Hudon, 2013). The current study attempts to understand and comprehend various dimensions of green microfinance in light of KEM. The study uses 178 sample files comprising videos, newspaper articles and policy reports. It follows a systematic qualitative inquiry with the help of CDA to answer several research questions. These questions are directed toward understanding the aims and scope, key drivers, expected outcomes and prospects of green microfinance.

The study uses a systematic approach, namely the Gioia approach (Gioia et al., 2012), to identify various themes in generating codes (75 open codes, 18 axial codes and 4 aggregate codes). The study shall be considered a pioneer in exploring the theme of green microfinance through various verticals, thereby contributing widely to the existing literature and the ecology theory of knowledge management. The usage of CDA in evaluating these media data files not only throws light on the concepts relevant to green microfinance but also expresses the beliefs and opinions that the media and society hold towards the development of this novel concept (Yu et al., 2022; Alexander et al., 2021).

The study offers four significant theoretical implications. First, since the theme of green microfinance is in the development phase, the study shall act as a pioneer in looking into the qualitative aspects of green microfinance and contribute to a better understanding of the domain while making valuable contributions to the existing literature on microfinance through the theoretical lens of KEM. Second, it is very pertinent to gauge the perception of the media as well as their expectations from the government (Bouvier and Machin, 2020). With the help of media articles, videos, and reports, the study expresses the individuals’ opinions through the media lens. This will help policymakers in identifying the areas requiring improvements. Third, the study also offers methodological contributions by using a novel method in the form of CDA (Sahmeni and Afifah, 2019). The method provides robustness to the qualitative inquiry and the results being obtained. Fourth, the study highlights the comprehensive nature of green microfinance and identifies a set of future research prospects that researchers can explore. By identifying prominent research gaps and potential research questions, the study can contribute immensely towards building scholarly literature in the context of green microfinance within the theoretical perspective of KEM, which is still evolving.

The study has some relevant practical implications as well. First, the outcomes of the study help identify the prominent drivers that facilitate the scope for enhancing the level of green microfinance. The government and policymakers can use these drivers to incentivize the institutions further to advance green financing. The drivers shall act as a catalyst for the firms on a hunt to adopt green policies and integrate them throughout their operations. Second, the outcomes expected under the purview of green microfinance shall also help these institutions build a better vision and strategy for achieving these outcomes. This shall impact the degree of achievement of the goals of these institutions. Outcomes of any policy incentivize the institutions/organization to adopt better practices, and these outcomes shall also serve similar purposes for the relevant organizations. Third, the government is keen on promoting sustainability-based financing, where firms that adhere to environmental safety are provided access to funding at low costs. Based on such outcomes, the government may also come up with further regulatory and scheme-based measures that would promote the scope of sustainable development. Finally, the conceptual framework defined in the study sets a roadmap for understanding the pathway towards sustainability-based outcomes. It provides better direction for the firms’ planning and implementation of strategies for achieving the desired objectives with the help of KEM by gathering, processing and disseminating information through its social network-based environment both formally and informally.

Though the study has made a valuable contribution to the literature, future researchers can explore and address some inherent limitations. Primarily, the theme of green microfinance is not widely researched; therefore, the sample used for the analysis is 178 files. Though the volume of data is sufficient to conduct a robust analysis, future researchers can base their analysis on a larger pool of data to enhance the generalizability of the results. Furthermore, the analysis of the study is based majorly on media reports and articles, and it has been found that media houses are influenced by various prominent corporate houses and political parties to address their profitable agendas (Wessel et al., 2023). This leads to biased outcomes, which have been represented in these reports and articles. Therefore, the profound bias can be addressed in future research. Finally, though qualitative inquiries can reveal those hidden dynamics that are not represented by quantitative exploration, these may lead to some degree of interpretation issues due to the subjectiveness of the researcher (Shufutinsky, 2020). Despite the above-mentioned limitations, the contributions made by the study are still relevant. They will act as a base for conducting research in the future and extending the KEM theory.

Moreover, to help future researchers unveil the intricacies of green microfinance and explore it better, this study identified certain gaps and research questions that can be addressed in this domain by future research scholars. Table 2 provides the details of the same.