scholarly journals MODELING SUSTAINABILITY MODEL OF ISLAMIC MICROFINANCE INSTITUTIONS

2019 ◽  
Vol 5 (4) ◽  
pp. 713-740
Author(s):  
Yuli Indah Sari ◽  
Widiyanto Bin Mislan Cokrohadisumarto
Keyword(s):  
Human Capital ◽  
Jel Classification ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Financial Industry ◽  
Cross Sectional ◽  
Islamic Microfinance ◽  
Human Quality ◽  
Islamic Leadership ◽  
Sustainability Model

Islamic microfinance institutions (IMFI) - such as the Baitul Maal wat Tamwil (with cooperative legal entities) that have been established in Indonesia - as part of the shariah-compliant financial industry sector (part of the halal sector) - need to be maintained their sustainability so as to encourage efforts to eradicate poverty and promote economic growth. In observing the sustainability of BMT, studies involving aspects of human quality that carry out internal activities are rarely examined in other studies. Therefore, the purpose of this stud is to create a model that is useful for predicting the sustainability of IMFI especially BMT based on variables that are considered important, namely; financing growth, Islamic human capital, fraud, and Islamic leadership. The model was analyzed using multiple regression analysis based on the stepwise method. Primary data (cross-sectional) taken in 2019 using questionnaires consisting of 105 respondents from the administrators and managers of BMTs in Semarang and Pekalongan Residency areas. We found that only two variables have a significant influence on the sustainability of Islamic microfinance institutions, these variables are financing growth and Islamic human capital. The results of the study can be used by practitioners to improve the performance of Islamic Micro Finance, especially BMT, through the distribution of funding in the context of economic improvement (especially micro-enterprise), spiritual strengthening for human resources owned, risk prevention, and appropriate leadership criteria. JEL Classification: G21, J24, Q01 Keywords: Islamic microfinance, Human capital, Sustainability, Model

scholarly journals Financial and Human Capital of Microentrepreneurs and Financing by Microfinance Institutions (MFIs) in Cameroon

2019 ◽  
Vol 4 (3) ◽  
pp. 98-107
Author(s):  
Serge MESSOMO ELLE
Keyword(s):  
Human Capital ◽  
Past Research ◽  
Jel Classification ◽  
Financial Capital ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Capital Financing ◽  
Five Cs ◽  
The One ◽  
The Relationship

Objective –This study determines the nature and the direction of how financial and human capital influence the financing of microentrepreneurs in Cameroon. Compared with past research, this work uses existing microentrepreneurs only, which are considered as the only ones having access to the financing of MFIs. Methodology/Technique – This study employs an explanatory approach and uses the Five Cs model and primary data to explain the influence of financial capital (capacity, collateral, capital and condition) and human capital (character) on the financing of microentrepreneurs by MFIs. Findings – On the one hand, the findings show that character, capacity and collateral significantly increase financing of microentrepreneurs by MFIs. On the other hand, the findings reveal that that condition is significant and has an inverse relationship with lending to microentrepreneurs. Collateral was found to be not significant. Novelty: Compared with past research, this work uses existing microentrepreneurs only, which are considered as the only ones having access to the financing of MFIs. This study examines the relationship between financial and human capital to capacity, collateral capital and condition and character of microentrepreneurs. Type of Paper: Empirical Keywords: Capacity; Character Collateral; Condition; Capital; Financing of Microentrepreneurs; Microfinance Institutions. Reference to this paper should be made as follows: Serge, M.E. 2019. Financial and Human Capital of Microentrepreneurs and Financing by Microfinance Institutions (MFIs) in Cameroon, J. Fin. Bank. Review 4 (3): 98 – 107. https://doi.org/10.35609/jfbr.2019.4.3(3) JEL Classification: G21, G32, L22, O15.

scholarly journals Developing The Sustainability Model of BMTs: Empirical Approach

2020 ◽  
Vol 13 (1) ◽  
pp. 1
Author(s):  
Widiyanto Bin Mislan Cokrohadisumarto ◽  
Yuli Indah Sari ◽  
Yulinda Hardiana
Keyword(s):  
Human Capital ◽  
Financial Institution ◽  
Community Support ◽  
Management Approach ◽  
Microfinance Institutions ◽  
Moderating Variables ◽  
Low Intensity ◽  
Central Java ◽  
Islamic Leadership ◽  
Sustainability Model

<p><span lang="IN">Maintaining the sustainability of microfinance institutions such as BMT is a must because this financial institution is badly needed by the community who do not want to be involved with usury practices. Efforts to build sustainability with a variety of approaches, especially from a more Islamic management approach are needed. This study aims to build a model of sustainability in BMT based on growth in the financing, community support, fraud, Islamic human capital, and Islamic leadership. This research was conducted using a quantitative approach (multiple linear regression with stepwise methods) to get the best model by developing moderating variables. The number of samples used was 105 respondents collected from BMT spread across the Semarang and Pekalongan Residency, Central Java, Indonesia. Based on the results of the study, to build BMT sustainability requires financing growth, support from the community, and good Islamic human capital. An interesting finding is that fraud does not affect the sustainability of BMT, this is possible because the fraud that occurs is still in low intensity. Islamic leadership and Islamic human capital are also unable to moderate the influence of fraud on the sustainability of BMT.</span></p>

Islamic microfinance in Mauritania: an investigation into involuntary factors affecting usage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vatimetou Mokhtar Maouloud ◽  
Salina Kassim ◽  
Anwar Hasan Abdullah Othman
Keyword(s):  
Structural Equation ◽  
Financial Inclusion ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
Factors Affecting ◽  
Specific Dimension ◽  
Islamic Microfinance ◽  
The Impact

Purpose This study aims to identify the involuntary barriers of financial inclusion which are affecting the usage of Islamic microfinance services in PROCAPEC institution located in Nouakchott-Mauritania. Subsequently, it also examines the effect of gender as a moderator in the model. Design/methodology/approach Primary data was collected through a cross-sectional questionnaire from 381 beneficiaries of PROCAPEC – a major Islamic microfinance provider in Mauritania. In methodology, the study uses confirmatory factor analysis to identify relevant involuntary factors affecting usage, followed by structural equation modelling to test the impact of these factors on the usage of Islamic microfinance (IsMF) products. Findings Two of the four factors are statistically significant in affecting the usage of IsMF products, namely, affordability and eligibility. Gender is a moderator in the relationship between affordability and usage, as well as eligibility and usage. Practical implications Policymakers, practitioners and managers of Islamic microfinance institutions can consider these factors and focus on strategies, including pricing and promotion, which aim to further develop the Islamic microfinance industry in Mauritania. Also, reducing documentation required from clients and adopting lenient rules to provide suitable products will enhance the use of IsMF products, which may lead to more customers’ attraction. Originality/value Although several researchers have articulated financial inclusion, this study sheds light on a specific dimension of financial inclusion to determine the factors impacting IsMF products’ usage. In Mauritania, there are few studies about microfinance. This study will be amongst the pioneer contribution to the geographical gap.

scholarly journals PENGEMBANGAN MODEL REDUKSI RESIKO DAN KALASI KINERJA PEMBIAYAAN MUDHARABAH PADA LEMBAGA KEUANGAN MIKRO SYARI’AH

INFERENSI ◽  
2014 ◽  
Vol 6 (2) ◽  
pp. 331
Author(s):  
Siti Maria Wardayati ◽  
Nining Ika Wahyuni ◽  
Nur Hisamuddin
Keyword(s):  
Information Asymmetry ◽  
Financial Institutions ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Final Output ◽  
Islamic Financial Institutions ◽  
Islamic Microfinance ◽  
Financing Performance

The development of Islamic financial institutions in Indonesia is very fast eventhough it is a new institution that all products are new in this Muslim-majoritycountry. This study will test the competence variables account syariah officer andrisk of financing in relation to the financing is affecting performance, and will alsotest the variable business ethics and information asymmetry in relation to risk andfinancial performance. Sample of this research is Islamic Microfinance Institutionsin Jember and Bondowoso with respondent managers and leaders Sharia Microfinance Institutions using primary data obtained through questionnaires. This studyused a quantitative approach and the data processing using Partial Least Square(PLS). Final output of this research is the development of arisk reduction model offinancing is an attempte scalation of financing performance.

scholarly journals Determinants of Micro-Enterprise Success through Microfinance Institutions: A Capital Mix and Previous Work Experience

2020 ◽  
Vol 21 (2) ◽  
pp. 803-823
Author(s):  
Waseem Ul Hameed ◽  
Hisham Bin Mohammad ◽  
Hanita Binti Kadir Shahar
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Work Experience ◽  
Financial Capital ◽  
Primary Data ◽  
Research Approach ◽  
Capital Social ◽  
Microfinance Institutions ◽  
Enterprise Success

The prime objective of the study is to highlight the role of the capital mix (financial capital, social capital, human capital) on women micro-enterprise success with moderating role of previous work experience. Women owned micro-enterprise success is less as compared to the male owned micro-enterprsie, particularly in Pakistan. Rate of faliure in women micro-enterpeise is more, that is the reason women community is one of the most vulnerable group worldwide. It is evident from literature that less attention has been paid to highlight the importance of three types of capital for women micro-enterprise. To adress this issue, the current study adopted quantitative research approach and based on cross-sectional research design. Primary data was collected by using 5-point Likert scale. Questionnaires were distributed among the owners of women micro-enterprise in Pakistan by using area cluster sampling. SmartPLS 3 was used to analyze the data. It is found that financial capital, social capital and human capital has significant positive relationship with women micro-enterprise success and previous work experience moderates the relationship. Hence, this study contributed by developing a unique framework for women micro-enterprise success. It will be beneficial for practitioners to enhance women micro-enterprise success rate.

scholarly journals Relationship between Recruitment Information System and Management of Human Capital: A case of James Finlay Limited, Kenya

2022 ◽  
Vol 5 (1) ◽  
pp. 11-19
Author(s):  
Robert Kiplangat Koech ◽  
Joseph Kirui ◽  
Lydia Langat
Keyword(s):  
Information System ◽  
Human Capital ◽  
Information Systems ◽  
Human Resource ◽  
Simple Random Sampling ◽  
Primary Data ◽  
Technological Advancement ◽  
Capital Management ◽  
Human Capital Management ◽  
Cross Sectional

Technological advancement in the 21st century has unlocked possibilities in all spheres of existence. Lately, with the advent of the Covid-19 pandemic, the workplace has been transformed, and businesses are operating in unchartered waters. A human resource management information system is believed to guarantee a more efficient and effective way of managing human capital in organizations. However, its implementation has not effectively transformed from the manual method of running the human resource functions. Many organizations are, therefore, still stuck with the traditional way of managing human capital. On this basis, this study sought to establish the effectiveness of recruitment information systems in human capital management. The study was anchored on the resource-based theory of the firm and used a cross-sectional research design with a target population of 458 employees. A sample size of 213 respondents was determined while stratified and simple random sampling techniques were adopted to select the respondents for the study. A structured questionnaire was used to obtain primary data from the respondents. The reliability of the questionnaire was tested through a pilot study where an average Cronbach alpha coefficient of 0.89 was obtained. The validity of the questionnaire was ensured by doing a detailed literature review and consultation with subject experts. Descriptive statistics (mean and standard deviation) were used to summarize data, while correlation analysis was used to test the study's hypothesis. Results were presented using tables. The findings established that recruitment information systems had a strong positive relationship (R = 0.873, β1 = 0.518, R2 = 0.762, p = 0.05) with human capital management, indicating that James Finlay Limited should invest more in Recruitment information systems. The study recommended that the company improve the recruitment information system to enhance the job interview process and improve the system to allow efficiency in tracking job applications and appointment processes.

scholarly journals Analisis Dampak Program Pemberdayaan Terhadap Kesejahteraan Umat

2021 ◽  
Vol 5 (2) ◽  
pp. 216-226
Author(s):  
Ferry Khusnul Mubarok
Keyword(s):  
Data Analysis ◽  
Quantitative Approach ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Data Analysis Technique ◽  
The People ◽  
Analysis Technique ◽  
Regression Approach ◽  
Islamic Microfinance ◽  
Empowerment Program

Poverty is still a problem, especially in realizing prosperity. Many programs are carried out to alleviate poverty, one of which is the empowerment program carried out by Islamic microfinance institutions. This study aims to identify the effect of empowerment contracts on people's welfare. This study uses a quantitative approach. This study uses primary data obtained from interviews, observation, documentation. The data analysis technique used a regression approach. The results and discussion showed that the empowerment contract which included the qardhul hasan and musyarakah contracts had a significant effect on customers' income. Thus, empowerment through the qardhul hasan and musyarakah contract schemes can be developed to realize the welfare of the people.

scholarly journals Impact of Microfinance on Enterpreneurship Development: A Case Study of JLGS Lucknow, Uttar Pradesh, India

2019 ◽  
Vol 13 (01) ◽  
Author(s):  
Meenu Arora ◽  
S. D. Sharma
Keyword(s):  
Uttar Pradesh ◽  
Simple Random Sampling ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Financial Industry ◽  
Joint Liability ◽  
Significant Difference ◽  
Entrepreneurial Development ◽  
The Government ◽  
The Impact

This research study investigates the impact of microfinance schemes on entrepreneurial development in lucknow district. To achieve the stated objective of the study, three research questions were formulated. The descriptive research design was adopted for the study. The Population for our study encompasses the joint liability groups who have been engaged in microfinance activities and are the beneficiaries of microfinance credit.250 JLGs respondents were selected from lucknow District according to simple random sampling method The researcher used questionnaire as an instrument of primary data collection. Tables and simple percentages were used in data presentation. For clear analysis, the study centres on two broad variables; the dependent variable which is entrepreneurial development and the independent variable which is microfinance institutions. The study reveals that i there is a significant difference in the number of entrepreneurs who used microfinance institutions and those who do not use them; ii there is a significant effect of microfinance institutions activities in predicting entrepreneurial productivity; and iii that there is no significant effect of microfinance institutions activities in predicting entrepreneurial development. The researcher concludes that microfinance institutions world over and especially are identified to be one of the key players in the financial industry that have positively affected individuals, business organizations, other financial institutions, the government and the economy at large through the services they offer and the functions they perform in the economy.

scholarly journals Human Capital Accountability and Construct: Evidence from Islamic Microfinance Institutions in Malaysia

2019 ◽  
Author(s):  
Amrizah Kamaluddin ◽  
Nawal Kassim ◽  
Md. Mahmudul Alam ◽  
Siti Akmar Abu Samah
Keyword(s):  
Human Capital ◽  
Factor Analysis ◽  
Extended Model ◽  
Survey Questionnaire ◽  
Microfinance Institutions ◽  
Spiritual Values ◽  
Company Culture ◽  
Islamic Microfinance ◽  
Questionnaire Method ◽  
Islamic Organizations

To identify the human capital construct that significantly relates to the performance of Islamic organizations, this study obtained data from Islamic microfinance organizations in Malaysia using the survey questionnaire method. In addition, we interviewed renowned scholars in the fields of Islamic accounting and Shariah law. Consequently, this study proposes an extended model of human capital that is applicable to Islamic organizations. Apart from knowledge and competency, this study includes spiritual value as another construct of human capital in Islamic organizations. Knowledge includes ideas that are relevant to the accounting and auditing spectra, as well as Shariah principles and jurisprudence. By contrast, competency refers to the ability to innovate unique Shariah-compliant products that are rare and difficult to imitate. Meanwhile, spiritual values embrace the elements of “Siddiq,” “Amanah,” “Fathonah,” and “Tabligh.” This study affirms that knowledge, competency, and satisfaction are the most significant constructs of human capital that explain performance. Factor analysis indicates that spiritual value is embedded in and forms part of the human capital construct. Hence, spiritual value is a key element in company culture and contributes significantly to organizational success. This model can be a platform for human capital reporting in the relevant Islamic and conventional organizations.

scholarly journals Organizational Culture and Performance: Evidence From Microfinance Institutions in Kenya

SAGE Open ◽  
2019 ◽  
Vol 9 (1) ◽  
pp. 215824401983593 ◽  
Author(s):  
Owino O. Joseph ◽  
Francis Kibera
Keyword(s):  
Organizational Culture ◽  
Survey Design ◽  
Annual Reports ◽  
Primary Data ◽  
Sustainable Competitive Advantage ◽  
Microfinance Institutions ◽  
Cross Sectional Survey ◽  
Marketing Manager ◽  
Cross Sectional ◽  
Market Culture

The study aimed at determining the influence of organizational culture on the performance of microfinance institutions in Kenya. A descriptive cross-sectional survey design was adopted. Secondary data were collected from annual reports by the Association of Microfinance Institutions in Kenya and the Microfinance Rating Africa. Primary data were collected using structured questionnaire targeting the chief executive officer, human resource manager, and marketing manager. Data were analyzed using factor analysis and hierarchical regression. Our analysis identifies clan and hierarchy as the dominant cultural typologies in the microfinance industry. The results obtained demonstrate that organizational culture has a significant influence on non market performance. In addition, market culture is inversely associated with debt/equity ratio. We conclude that organizational culture is a major source of sustainable competitive advantage in the microfinance industry. Furthermore, we conclude that market culture promotes financial independence and sustainability in the long term.

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