Details

Case

Kick-Starting Indigenous Innovation: A Case of Akhuwat

Abdul Karim Khan, Shoaib ul Haq

INDUSTRY : NGO Management

AREA : HRM/OB

ORGANIZATION : Akhuwat

LENGTH : 39

LUMS No : 05-761-2014-1

PUBLICATION YEAR : 2014

KEYWORDS:

Indigenous Innovation,Akhuwat,Interest-free Financing,Social Service,NGO,Loan Disbursement,Low Operating Costs

DESCRIPTION:

In 2009, Dr. Amjad Saqib, Executive Director of Akhuwat, was deciding if he should introduce an interest-free financing model that effectively builds on the cultural uniqueness of the local community. This model aims to provide interest-free small loans (qarz e hasna) in the spirit of Islamic brotherhood where most activities are performed by volunteers. All activities revolve around religious institutions like mosques and involve a close interaction with the community. The loan disbursement method provides not only religious sanctity to the whole process but also very low operating costs. Dr. Amjad envisioned a poverty free society built upon the principles of compassion and mutual support, but is the interest-free model the right step in this direction? Moreover, there are questions about the scalability of this model and the composition of donors which need to be resolved before this model can be implemented.

LEARNING OBJECTIVES:

1) To explore the dynamics of an industry to find out the conditions for an alternative business model. 2) To establish the importance of developing indigenous innovative business models. 3) To explote the challenges associated with implementing innovative models. 4) To explore the central role that the Chief Executive Officer (CEO) and the Top Management Team play in organisational change, innovation and adaptation. 5) To understand the authentic leadership style for generating and promoting indigenous business models.

SUBJECTS COVERED:

Human Resource Management, Organizational Behaviour