An integrated framework for analysing performance indicators of Indian microfinance institutions: a multi-stakeholder perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amit Kumar Bardhan ◽  
Barnali Nag ◽  
Chandra Sekhar Mishra ◽  
Pradeep Kumar Tarei
Keyword(s):  
Decision Making ◽  
Financial Performance ◽  
Performance Indicators ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Dyadic Relationship ◽  
Content Type ◽  
Integrated Framework ◽  
Overall Performance ◽  
Performance Dimensions

PurposeAn amalgamation of Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Analytical Network Process (ANP) has been performed to develop a decision-making framework for improving the overall performance of the microfinance institutions. A primary survey was conducted to collect real-time data from the heterogeneous stakeholders of microfinance institutions across India. The validation of the proposed framework is performed by comparing the results against the conventional method of Analytical Hierarchy Process (AHP).Design/methodology/approachThis study identifies various dimensions and indicators for measuring the performance of Indian microfinance institutions. Additionally, the ranking and prioritisation of the performance dimensions and indicators is obtained by considering the mutual interrelation between them.FindingsThe study indicates that there exists a significant dyadic relationship between financial performance and social performance for improving the overall performance of the microfinance institutions. Governance is found to unidirectionally influence both financial and social performance. Among all the considered dimensions, financial performance of a microfinance institution is the most critical dimension for improving the overall performance. The top five performance indicators of the Indian microfinance institutions are funding source, borrowing and overhead cost, size of the firm, end-use of the money and depth of outreach.Research limitations/implicationsThe study was conducted in the context of Indian microfinance institutions; hence the scope of generalisation of the results is limited. This research considers both subjective and objective aspect of the performance dimensions and indicators from the perspective of multiple stakeholders (i.e. firm, society and regulator). The integrated framework is expected to aid in improving overall performance of microfinance institutions by focusing on the most critical (high prioritised) performance indicators.Originality/valueAn integrated DEMATEL-ANP framework is used in the domain of microfinance to assess the performance dimensions. This study is unique in terms of analysing performance of microfinance institutions from the perspective of heterogeneous stakeholders.

Knowledge mapping of microfinance performance research: a bibliometric analysis

2021 ◽  
Vol 48 (3) ◽  
pp. 399-418
Author(s):  
Shabiha Akter ◽  
Md Hamid Uddin ◽  
Ahmad Hakimi Tajuddin
Keyword(s):  
Financial Performance ◽  
Bibliometric Analysis ◽  
Social Performance ◽  
Credit Scoring ◽  
Basic Research ◽  
Future Research ◽  
Knowledge Mapping ◽  
Microfinance Institutions ◽  
Content Type ◽  
Bibliometric Review

PurposePerformance assessment of microfinance institutions (MFIs) has long been a question of considerable research interest. The dual goals – financial performance and social performance of MFIs widely studied yet remain unsolved in the existing literature. To assess the knowledge structure of research in this area and to aid future research, we review the literature with bibliometric analysis.Design/methodology/approachOur study has used bibliographic data of 1,252 scientific documents indexed in the Scopus database from 1995 to 2020 (June 05). We have used the “bibliometrix” package in R language to analyze the data and illustrate the findings.FindingsWe find that there has been an increasing trend in publications, especially from 2006 onwards. Various bibliometric indicators allow us to follow the progression of knowledge along with identifying the most contributing and impactful authors, publication sources, institutions and countries. We illustrate the major research themes and identify that “poverty alleviations”, “group lending” and “credit scoring” are the major emerging and specialized themes besides the basic research evolved around “microfinance” or “microcredit”. Our further analysis of thematic evolution over different time frames reveals that “financial performance” aspect is getting more attention in recent times in evaluating the performance of MFIs.Originality/valueThe insights of knowledge accumulated from our bibliometric review and thematic analysis provide researchers with an efficient comprehension of the advancement of the research on microfinance performance and offer avenues for future scientific endeavors.

scholarly journals Toward a holistic understanding of performance in Lean Manufacturing: a discussion on the relevance of its indicators

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Diana Cardenas-Cristancho ◽  
Laurent Muller ◽  
Davy Monticolo ◽  
Mauricio Camargo
Keyword(s):  
Decision Making ◽  
Performance Indicators ◽  
Lean Manufacturing ◽  
Human Factor ◽  
Content Type ◽  
Novel Approach ◽  
Holistic Understanding ◽  
Overall Performance ◽  
Two Stages ◽  
Practical Implications

Purpose This study aims to propose a novel approach to select and prioritize performance indicators in Lean Manufacturing depending on whether they are influencing or being influenced by others, thereby assisting in the decision-making process for improving overall performance. Design/methodology/approach The methodology comprises two stages. First, a literature review was conducted to identify the performance indicators, and then their interrelationships were analyzed by means of the decision-making trial and evaluation laboratory (DEMATEL) multi-criteria decision-making (MCDM) method. Findings The results provide a comprehensive visualization of the performance indicators in Lean Manufacturing, with a total of 50 identified indicators. Among these, 29 were categorized as causal, meaning that their results mainly influence the others, and 21 as influenced, with their results mostly being influenced by others. Among the causal indicators, those related to the human factor (eight indicators) were the most predominant. However, the most-cited performance families in the literature do not stand out as being causal, but rather as mostly influenced. Practical implications This study can help managers improve and analyze performance more effectively, while focusing on the importance of choosing causal over influenced indicators. Originality/value Performance measurement plays a crucial role for organizations, but because of the increasing number of metrics, there lacks an established framework. This exploratory study thus opens the discussion on relevance to determine a group of coherent and connected indicators that could help measure performance in a more comprehensive manner, rather than in several isolated parts.

System dynamics to turnaround an Indian microfinance institution

Kybernetes ◽  
2016 ◽  
Vol 45 (3) ◽  
pp. 411-433
Author(s):  
Ritika Singh ◽  
Chandan Bhar
Keyword(s):  
System Dynamics ◽  
Performance Indicators ◽  
Social Performance ◽  
Financial System ◽  
Quantitative Model ◽  
Microfinance Institutions ◽  
Content Type ◽  
Long Run ◽  
Microfinance Institution ◽  
Corporate Model

Purpose – The purpose of this paper is to present a policy comparison tool for Indian Microfinance Institutions (MFIs) so that they can choose the best policy for implementation. It provides for turnaround of a troubled MFI by analyzing the performance of different policies. Design/methodology/approach – The paper has done a web survey to identify the need of a strategic tool for MFI. It has built a Decision Support System (DSS) using system dynamics. A corporate model of MFI has been constructed using iThink 10.0.2 software. A quantitative validity test has been done to find the robustness of the model. Finally four policies are tested and the performance indicators have been used to suggest the best policy. Apart from this DSS is used to test the implementation range of a policy. Findings – “Integration of Microfinance with country’s mainstream financial system along with provisioning 1 percent of outstanding loans” is recommended for the MFI as this will increase the financial performance. Research limitations/implications – In its present form the corporate model developed for MFI is not applicable for judging social performance. Therefore MFIs might be sceptic toward it. However, incorporation of certain performance indicators such as financial-self-sufficiency ratio might help in overcoming this reluctance. Practical implications – “Integration of Microfinance with country’s mainstream financial system along with restricting provision” will generate better performance for the MFI. Therefore this policy should be implemented by the MFI. There are other considerations which need to be taken into account while implementing this policy. The integration may require outsourcing of certain operations to banks, utilization of bank branches to disseminate knowledge related to the conduct of transactions, usage of customized bank software to handle the day-to-day business, development of new softwares for mobile messaging to help poor customers avail of schemes run by the banks, fill loan application forms online, send reminders for loan recovery; provide incentives such as upgradation of poor customers to become regular customers of banks. Social implications – By improving the health of the MFI a bigger goal to reach the poor will be achieved in the long run. The MFI has around five million clients at present and if the company becomes insolvent then the future of these clients is going to be impacted. The organization has interacted closely with these clients and therefore knows how to upgrade their financial state. Originality/value – The tool is first of its kind in the microfinance industry. So far the microfinance technology providers have dealt with Management Information System and Information and Communication Technology. The tool has been built to present a quantitative model for overall operations of the MFI. The simulation of this model helps in predicting future scenarios.

Micro-loans and financial performance: a case of a Chinese commercial bank

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmine Alam ◽  
Mustapha Ibn Boamah ◽  
Yuheng Liu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Annual Reports ◽  
Content Type ◽  
Overall Performance ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
The Relationship

Purpose This study aims to investigate the relationship between a commercial bank’s micro-loaning activity and overall performance over a 10-year period. Design/methodology/approach Quarterly data was obtained from the Wind Database, China Minsheng Banks’s official annual reports and annual corporate social responsibility reports from 2009 to 2019, to test the linear relationship between micro-loan activities and the overall financial performance of the bank. Findings The results of this study empirically demonstrate that there is a positive relationship between increases in micro-loaning activity and the overall performance of the bank. Some key recommendations for the sector are shared in the conclusion of this paper. Originality/value In the financial sector, some corporate social responsibility activities focus on the issuance of micro-loans. It is unclear, however, if this has also served as a means to increase profitability and overall performance for such institutions.

scholarly journals Microfinancing, governance, and performance: a South Asian perspective

2018 ◽  
Vol 23 (46) ◽  
pp. 247-265 ◽  
Author(s):  
Asif Saeed ◽  
Attiya Y. Javed ◽  
Umara Noreen
Keyword(s):  
South Asian ◽  
Social Performance ◽  
Bank Regulation ◽  
Chief Executive ◽  
Microfinance Institutions ◽  
Board Size ◽  
Content Type ◽  
Urban Market ◽  
And Performance ◽  
Loan Size

Purpose This paper aims to investigate the relationship between microfinance institutions (MFIs) governance and performance. Design/methodology/approach Using a sample of 215 MFIs from six South Asian countries over the period from 2005 to 2009, the authors examine the effect of chief executive officer (CEO) duality, board size, female CEO, urban market coverage, bank regulation and lending type on financial and social performance of MFIs. Findings The findings provide evidence that, on the one hand, empowered CEO, large board size and individual lending improve the MFI financial performance and, on another hand, bank regulation and serving in the urban market have a significant association with MFIs’ social performance. In an additional analysis, the authors also test this relationship before, during and after the financial crisis of 2007. During crisis period, MFIs’ individual lending reduces the operational cost and bank regulation increases the average loan size in South Asian MFIs. Originality/value Those studies that are presented in the literature review conclude their result on the bases of global, European, East African and specific to some countries sample. There is no study presented in the whole literature on South Asian sample, in which all countries really face the problem of poverty.

A post-global financial crisis (GFC) framework for strategic planning, assessment and management decision making for US sustainable commercial real estate

2017 ◽  
Vol 35 (6) ◽  
pp. 589-618 ◽  
Author(s):  
Pernille Hoy Christensen
Keyword(s):  
Decision Making ◽  
Financial Crisis ◽  
Real Estate ◽  
Performance Indicators ◽  
Institutional Investors ◽  
Global Financial Crisis ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
Content Type ◽  
Sustainability Initiatives

Purpose The purpose of this paper is to understand both the facts and the values associated with the breadth of issues, and the principles related to sustainable real estate for institutional investors. Sustainable real estate is a growing sector within the commercial real estate industry, and yet, the decision-making practices of institutional investors related to sustainability are still not well understood. In an effort to fill that gap, this research investigates the post-global financial crisis (GFC) motivations driving the implementation of sustainability initiatives, the implementation strategies used, and the predominant eco-indicators and measures used by institutional investors. Design/methodology/approach This paper presents the results of a three-round modified Delphi study conducted in the USA in 2011-2012 investigating the nature of performance measurements and reporting requirements in sustainable commercial real estate and their impact on the real estate decision-making process used by institutional investors. Two rounds of in-depth interviews were conducted with 14 expert panelists. An e-questionnaire was used in the third round to verify qualitative findings. Findings The key industry drivers and performance indicators influencing institutional investor decision making were associated with risk management of assets and whether initiatives can improve competitive market advantage. Industry leaders advocate for simple key performance indicators, which is in contrast to the literature which argues for the need to adopt common criteria and metrics. Key barriers to the adoption of sustainability initiatives are discussed and a decision framework is presented. Practical implications This research aims to help industry partners understand the drivers motivating institutional investors to uptake sustainability initiatives with the aim of improving decision making, assessment, and management of sustainable commercial office buildings. Originality/value Building on the four generations of the sustainability framework presented by Simons et al. (2001), this research argues that the US real estate market has yet again adjusted its relationship with sustainability and revises their framework to include a new, post-GFC generation for decision making, assessment, and management of sustainable real estate.

Financial disclosure and performance of microfinance institutions

2014 ◽  
Vol 10 (3) ◽  
pp. 314-337 ◽  
Author(s):  
Shakil Quayes ◽  
Tanweer Hasan
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Least Squares Method ◽  
Financial Disclosure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Three Stage Least Squares ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between financial disclosure and the financial performance of microfinance institutions (MFIs). Design/methodology/approach – The paper utilizes ordinary least squares method to analyze the impact of disclosure on financial performance, an ordered probit model to investigate the possible effect of financial performance on disclosure and utilizes a three-stage least squares method to delineate the endogenous relationship between disclosure and financial performance of MFIs. Findings – The paper finds that better disclosure has a statistically significant positive impact on operational performance of MFIs; second, it also shows that improved financial performance results in better financial disclosure. Keeping the endogenous nature of the relationship between disclosure and performance, the paper uses a three-stage least squares method to show that disclosure and financial performance positively affect each other simultaneously. Research limitations/implications – The paper attempts to delineate a positive association between better disclosure on financial performance of MFIs, which can be used for developing a better disclosure policy by management, formulating more effective guidelines for disclosure by the stakeholders and mandating more appropriate laws and uniform disclosure practice by regulators. Originality/value – This is the first study that uses a large number of MFIs from 75 countries; second, it uses a uniform scale of designating a disclosure rating (assigned by MIX Market) to show the relationship between disclosure and performance. Finally, it uses three-stage least squares method to address the possible endogeneity between disclosure and performance.

Show you the money – firms investing in worker safety have better financial performance: insights from a mapping review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saymon Ricardo de Oliveira Sousa ◽  
Cristiane Melchior ◽  
Wesley Vieira Da Silva ◽  
Roselaine Ruviaro Zanini ◽  
Zhaohui Su ◽  
...  
Keyword(s):  
Financial Performance ◽  
Return On Investment ◽  
Occupational Safety ◽  
Web Of Science ◽  
Research Literature ◽  
Worker Safety ◽  
Safety Measures ◽  
Content Type ◽  
Mapping Review ◽  
Overall Performance

PurposeThis study aims to (1) investigate the association between companies' investment in occupational safety and their financial performance and (2) discuss the importance of occupational safety to overall performance.Design/methodology/approachOccupational safety is often considered to be a practice that can yield suboptimal return on investment. However, it is not known whether this belief is substantiated by evidence. A mapping review of the eligible research literature (N = 36) regarding firms' investment in occupational safety and their financial performance, published between 1945 and2018, was carried out in the Web of Science database.FindingsBy dispelling myths regarding return on investment associated with occupational safety, the findings of this study underscore financial gains firms can obtain by promoting occupational safety measures in their organizations.Originality/valueThese issues are important because they can help policymakers understand the pressures companies face in terms of occupational safety and financial performance sustainability.

Sustainability excellence: the interactions of lean production, internal green practices and green product innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Afum ◽  
Ran Zhang ◽  
Yaw Agyabeng-Mensah ◽  
Zhuo Sun
Keyword(s):  
Financial Performance ◽  
Product Innovation ◽  
Lean Production ◽  
Green Product ◽  
Content Type ◽  
Sustainable Performance ◽  
Green Practices ◽  
Green Product Innovation ◽  
Performance Dimensions ◽  
The Relationship

Purpose This study aims to investigate the interactions between lean production, internal green practices, green product innovation and sustainable performance metrics. The study further looks at the mediation effect of internal green practices and green product innovation between lean production and sustainable performance dimensions. Design/methodology/approach The questionnaire was used to glean data from 209 manufacturing firms. All the hypothesized relationships were processed by using partial least square-structural equation modelling. Findings The results suggest that lean production significantly leads to the implementation of internal green practices and the production of quality products with eco-oriented features that meet customers’ needs. Further, while lean production and internal green practices were found to significantly influence sustainability performance, green product innovation significantly influences only financial performance. Besides, the mediation analysis shows that internal green practices mediate the relationship between lean production and sustainable performance dimensions but green product innovation mediates the relationship between lean production and financial performance only. Research limitations/implications The study is limited to firms from Ghana, a developing country; hence, the results cannot be imported to reflect other geographical contexts. Practical implications The results of the study provide sufficient justifications for managers, (especially Ghanaian managers and those from other similar environs) to commit their financial resources towards implementing lean production and internal green practices so as to achieve sustainability excellence. Originality/value This study magnifies and provides new insight on lean and green literature by developing a comprehensive research model that concurrently tests the direct and indirect effects between lean production, internal green practices, green product innovation and sustainable performance dimensions.

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