Journal ArticleDOI
Measuring efficiencies of Bangladeshi and Indonesian microfinance institutions: A data envelopment analysis and latent growth curve modeling approach
TLDR
In this paper, the authors measured the technical efficiency and growth trajectory of Bangladeshi and Indonesian micro-finance institutions (MFIs) over a five-year period using data envelopment analysis (DEA).Abstract:
Purpose
The purpose of this paper is to measure the technical efficiency and growth trajectory of Bangladeshi and Indonesian microfinance institutions (MFIs) The motivation for this study was derived from crucial roles that these institutions play in the socio-economic transformation of any nations, especially Bangladesh and Indonesia which are at least prominent in the Asian context in this regard Rather than “proving” impact, research endeavors have shifted to focusing on “improving” the impact of MFIs, because the ability to improve their impact as socio-economic transformation platform may be hinged on their efficiency over time
Design/methodology/approach
Data were obtained from MIX market database covering a five-year period from 2007 to 2011 for 20 Bangladeshi and 11 Indonesian MFIs The data obtained were subjected to both efficiency and trajectory analysis using data envelopment analysis (DEA) based on Malmquist productivity index, independent t-test, and latent growth curve modeling (LGCM)
Findings
Overall, DEA results indicate that both Bangladeshi and Indonesian MFIs are approximately efficient under constant returns to scale, variable returns to scale, and scale There has been an improvement in the management practices of Bangladeshi MFIs, while Indonesian MFIs have increased in optimum size Independent t-test result shows that Bangladeshi MFIs are significantly efficient in terms of performance and firm’s size compared to Indonesian MFIs, but there is no significant difference in their efficiencies with regard to technology The intercept and the slope of the regression weight in the estimated model using LGCM are not significantly different
Research limitations/implications
This study measures technical efficiency and growth trajectory of Bangladeshi and Indonesian MFIs over a five-year period However, future studies could explore this in greater depth by incorporating more data
Practical implications
The research findings have great implications for the Bangladeshi and Indonesian MFIs Since this study is among the first of its kind, the researchers have paved ways for further investigation in this area Moreover, the study encourages the Bangladeshi and Indonesian MFIs to be more concerned of their efficiencies
Originality/value
This study measures technical efficiency and growth trajectory of the Bangladeshi and Indonesian (MFIs) These have never been examined together in this way beforeread more
Citations
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Efficiency, firm-specific and corporate governance factors of the Takaful insurance
TL;DR: In this article, the authors examined the efficiency level of the Malaysian Takaful industry between 2011 and 2015, using two-stage Data Envelopment Analysis (DEA) to obtain a DEA score for each operator.
Journal ArticleDOI
The Impact of Microfinance on Households' Socioeconomic Performance: A Proposed Mediation Model
W Muhammad Zainuddin B Wan Abdullah,W. N. R. A Zainudin,Sarina Binti Ismail,Mohd Hassan Che Haat,Hafiz Muhammad Zia-ul-haq +4 more
TL;DR: In this article, a new conceptual framework was developed to investigate the influence of different micro-finance services on households' socioeconomic performance using moderated mediation analysis of various crucial factors.
Journal ArticleDOI
Ownership and performance of microfinance institutions: Empirical evidences from India
TL;DR: In this paper, the authors examined the efficiency differences across the ownership structure of Indian micro-finance institutions operating during the year 2005/06 to 2017/18 in response to regulatory reform.
Journal ArticleDOI
Technological Change and Innovations in Microfinance Institutions: What Matters?:
TL;DR: In this article, a large number of micro-services providers have been identified that use technology that serves to improve organizational efficiency among financial service providers during the past decade, such as cloud computing.
Journal ArticleDOI
Multilevel latent class modeling to segment the microfinance market
TL;DR: In this paper, a multilevel latent class models were estimated to reveal clusters of operations and classes of clients in the micro finance market, and different strategies were recommended for each cluster and class.
References
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Journal ArticleDOI
Measuring the efficiency of decision making units
TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
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TL;DR: In this article, the EQS program is used to test the factorial verifiability of a theoretical construct and its invariance to a Causal Structure using the First-Order CFA model.