The Role of Customer-Focused Strategies to Improve Islamic Microfinance Institutions Performance: Empirical Evidence and Lessons from Yemen

The Role of Customer-Focused Strategies to Improve Islamic Microfinance Institutions Performance: Empirical Evidence and Lessons from Yemen

Microfinance, a tool to fight poverty and to promote economic development, has attracted the attention of governments, international organizations, and academicians across the globe. Although the literature provides substantial evidence on the significant effects of the customer-focused strategies such as Total Quality Management (TQM) and Market Orientation (MO) on organizational performance, research on the role of these factors in the context of microfinance is still too limited, and in the field of Islamic microfinance is even more neglected. Moreover, empirical research related to these factors has shown that the findings are not conclusive, indicating the need for further research in the area. Thus, this study aims at examining the roles of TQM and MO on Islamic MFIs performance in Yemen which provides additional insights into the literature. Cross-sectional survey was employed, and questionnaires were administered to collect data from the branch managers of Islamic Microfinance Institutions in Yemen. Out of 93 questionnaires distributed through a self-administered approach, 71 usable responses were used for the analysis. Partial Least Square-Structural Equation Modeling was used and the results provide an empirical evidence of the significant roles of TQM and MO on the Islamic MFIs performance. The study is of great importance for academicians as it opens the door for further research into the area. It is also useful for practitioners as it provides empirical evidence on the significant roles of these strategies in achieving sustainability and better performance by Islamic MFIs in Yemen. These strategies are essential in establishing the platform for innovation to enable Islamic MFIs to develop and generate new Islamic financing products that satisfy Muslims entrepreneurs.
International Review of Management and Marketing-Cover
  • Başlangıç: 2011
  • Yayıncı: İlhan ÖZTÜRK
Sayıdaki Diğer Makaleler

Comparative Analysis of Customer Satisfaction towards Islamic and conventional banking: An empirical Study from Saudi Arabia

Fayaz Ahmad LONE, Ebraheem Mohamad ALDAWOOD, Ulfat Rashid BHAT

Ethical Sensitivity of Accounting Students: Evidence from Malaysia

Suba Ranjini Nadaraja, Mazlina Mustapha

The Extend of Applying the Extensible Business Reporting Language at Jordanian Industrial Companies

Omar İkbal TAWFİK, Ahmad Faisal HAYEK, Ahnaf Ali AL-SMADY

Loyalty or Inertia? Customer Perspective on Traditional Micro-retailing of Fisheries Commodities in Small Islands Coastal Area

Meyske A. RAHANTOKNAM, Wellem A. TENİWUT, Anna M. NGABALİN

Women Workforce in the Korean Context

Yeonu Lee

Entrepreneurial Success within the Process of Opportunity Recognition and Exploitation: An Expansion of Entrepreneurial Opportunity Recognition Model

Kabir SHAMSUDEEN, Ooi Yeng KEAT, Hazlinda HASSAN

Optimization by Integration: A Corporate Governance and Human Resource Management Dimension

Olabode Adeleke OYEWUNMİ, Omotayo Adewale OSİBANJO, Hezekiah Oluwabusayo FALOLA, Olusola Joshua OLUJOBİ

The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SMEs

Mohammed R. Yaseen ZEEBAREE, Rusinah Bt. SİRON

The Infl uence of Electronic-Word-of-Mouth on Travel Intention among Foreign Students in Malaysia: Does Gender Really Matter?

Gengeswari Krishnapillai, Kwok See Ying

Age and Gender Motivating Differences of Slovak Workers

Dagmar Weberova, Miloš Hitka, Lenka Lizbetinova