nep-mfd New Economics Papers
on Microfinance
Issue of 2018‒06‒25
two papers chosen by
Olivier Dagnelie
Université de Caen

  1. Local Culture, Internal Marketing and Employee Satisfaction in Improving Financial Performance: A Case Study of Microfinance Institutions in Bali By I Putu Astawa
  2. DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis By François-Seck Fall; Akim Al-Mouksit; Harouna Wassongma

  1. By: I Putu Astawa (Tourism Business Management, State Polytechnic of Bali, Jimbaran 80361, Bali, Indonesia Author-2-Name: Tjokorda Gde Raka Sukawati Author-2-Workplace-Name: Faculty of economics and Business, Udayana University, Jimbaran 80361 Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective – Local culture acts as a bridge in empowering the resources owned by a firm so they can operate harmoniously. This research tests the theory of local culture, internal marketing, and employee satisfaction in an effort to improve financial performance. Methodology/Technique – The research is supported by the existing phenomenon of increasing credit issues. The data is obtained from 1,364 questionnaires and is quantitatively analyzed through Structural Equation Modelling. A qualitative analysis is used to deepen the anomaly relationship through a phenomenological approach. Findings – The result show that local culture becomes the organizational culture, but has no direct influence on the improvement of performance. Indicators related to the environment have a very low contribution to the development of organizational culture. Internal marketing indicators, such as recruitment processes and internal communication, have a significant contribution on the achievement of financial performance. Further, employee satisfaction has a significant impact on the achievement of financial performance. Novelty – This study develops a new model that can be used to enhance financial performance. The integration of local culture into internal marketing and employee satisfaction is a relatively novel invention.
    Keywords: : Local Culture; Internal Marketing; Employee Satisfaction; Financial Performance; Microfinance Institutions; Bali.
    JEL: Z1 Z10 Z19
    Date: 2018–04–27
  2. By: François-Seck Fall (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT1 - Université Toulouse 1 Capitole - UT2 - Université Toulouse 2 - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville); Akim Al-Mouksit (UCAD - Université Cheikh Anta Diop , UMR DIAL - Université Paris Dauphine (Paris 9)); Harouna Wassongma (UCAD - Université Cheikh Anta Diop)
    Abstract: Microfinance has played a key role in the fight against exclusion and the promotion of entrepreneurship in developing countries. An important question today is how to increase the reach and profitability of microfinance, in a context where subsidies are withdrawing to promote the viability and sustainability of microfinance institutions (MFIs). Efficiency analysis has found favor in this context and has attracted growing interest among professionals, partners, and researchers. Abundant empirical work has been conducted over the last ten years on this subject, in very different contexts and with different methodologies. The purpose of this article is to provide a meta-regression analysis on parametric and nonparametric estimations of Mean Technical Efficiency (MTE) in microfinance, using a data set of 262 observations from 38 studies. The results show that, in the microfinance industry, MTE scores have increased over time. However, with an MTE rate of approximately 61.1%, there is room for improving efficiency. MFIs use more resources than necessary for the results achieved in terms of outreach and revenue generated. Our results show heterogeneity of MTE according to the methodological approach of the studies. Studies with a larger number of variables (inputs and outputs) produced higher MTE scores than did those with a smaller number of variables. Studies using the variable returns to scale assumption resulted in higher MTE scores than those using constant returns to scale. In addition, those with a production approach had higher MTEs than did those using the intermediation approach, while studies of a large number of MFIs had lower scores than did those involving a small sample size. Moreover, research estimating social efficiency generated lower MTEs compared to those estimating financial efficiency. Studies using data from African MFIs obtained lower MTEs than did those on MFIs in Latin America and MENA, which confirms the poor performance of African microfinance.
    Keywords: SFA,Meta-analysis,Microfinance,Technical efficiency,DEA
    Date: 2018–07

This nep-mfd issue is ©2018 by Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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