Social and financial efficiency of Islamic microfinance institutions: a Data Envelopment Analysis application

Indra Widiarto; Ali Emrouznejad

doi:10.1016/j.seps.2014.12.001

Social and financial efficiency of Islamic microfinance institutions: a Data Envelopment Analysis application

Indra Widiarto
, Ali Emrouznejad^*

^*Corresponding author for this work

Operations and Service Management

Research output: Contribution to journal › Article › peer-review

126 Citations (Scopus)

70 Downloads (Pure)

Abstract

Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing them to conventional MFIs. First, we develop a Data Envelopment Analysis (DEA) framework to measure MFIs' efficiency in its double bottom line objectives, i.e. in terms of social and financial efficiency. In the second stage non-parametric tests are used to compare the performance and identify factors that contribute to the efficiency of IMFIs and MFIs.

Original language	English
Pages (from-to)	1-17
Number of pages	17
Journal	Socio-economic planning science
Volume	50
Early online date	27 Jan 2015
DOIs	https://doi.org/10.1016/j.seps.2014.12.001
Publication status	Published - Jun 2015

Bibliographical note

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 5 Gender Equality
SDG 8 Decent Work and Economic Growth

Keywords

Data Envelopment Analysis
efficiency
Islamic microfinance
microfinance institutions
performance measurement

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10.1016/j.seps.2014.12.001

Social and financial efficiency of Islamic microfinance institutions
© 2015, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Accepted author manuscript, 1.34 MBLicence: CC BY-NC-ND 3.0

Cite this

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title = "Social and financial efficiency of Islamic microfinance institutions: a Data Envelopment Analysis application",

abstract = "Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing them to conventional MFIs. First, we develop a Data Envelopment Analysis (DEA) framework to measure MFIs' efficiency in its double bottom line objectives, i.e. in terms of social and financial efficiency. In the second stage non-parametric tests are used to compare the performance and identify factors that contribute to the efficiency of IMFIs and MFIs.",

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doi = "10.1016/j.seps.2014.12.001",

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T2 - a Data Envelopment Analysis application

AU - Widiarto, Indra

AU - Emrouznejad, Ali

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Y1 - 2015/6

N2 - Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing them to conventional MFIs. First, we develop a Data Envelopment Analysis (DEA) framework to measure MFIs' efficiency in its double bottom line objectives, i.e. in terms of social and financial efficiency. In the second stage non-parametric tests are used to compare the performance and identify factors that contribute to the efficiency of IMFIs and MFIs.

AB - Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing them to conventional MFIs. First, we develop a Data Envelopment Analysis (DEA) framework to measure MFIs' efficiency in its double bottom line objectives, i.e. in terms of social and financial efficiency. In the second stage non-parametric tests are used to compare the performance and identify factors that contribute to the efficiency of IMFIs and MFIs.

KW - Data Envelopment Analysis

KW - efficiency

KW - Islamic microfinance

KW - microfinance institutions

KW - performance measurement

UR - https://www.scopus.com/pages/publications/84930251402

U2 - 10.1016/j.seps.2014.12.001

DO - 10.1016/j.seps.2014.12.001

M3 - Article

AN - SCOPUS:84930251402

SN - 0038-0121

VL - 50

SP - 1

EP - 17

JO - Socio-economic planning science

JF - Socio-economic planning science

ER -

Social and financial efficiency of Islamic microfinance institutions: a Data Envelopment Analysis application

Abstract

Bibliographical note

UN SDGs

Keywords

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