Business Model and Operational Efficiency of Microfinance in Bosnia and Herzegovina: Lessons for Islamic Microfinance

Efendic, Velid; Hadžić, Fikret

doi:10.1007/978-3-319-45029-2_9

Cited by 4 publications

(3 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Analysis of the trends in financial performance and efficiency indicators in the period from 2008 to 2015 shows that the microfinance sector in BiH recorded a significant decline in most of the indicators, which highly correlate with the drop in total assets as well as in loans received from external financiers (Efendic and Hadzic 2017). In addition, it is important to mention that MFIs in BiH have received in the last 15 years significant recognition and have been awarded for their high level of transparency and financial reporting.…”

Section: Microfinance In Bosnia and Herzegovinamentioning

confidence: 99%

See 1 more Smart Citation

The social and financial efficiency of microfinance institutions: the case of Bosnia and Herzegovina

Efendic

Hadziahmetovic

2017

South East European Journal of Economics and Business

View full text Add to dashboard Cite

This paper investigates the financial and social efficiency of microfinance institutions (“MFIs”) in Bosnia and Herzegovina, as well as the effects of the latest crisis on these “two-dimensional” efficiencies. Specifically, we analyze the efficiency of MFIs in Bosnia and Herzegovina (BiH) as a good case of a European, post-war country in transition with a developed micro-financial sector. The efficiency analysis relies on secondary data collected and investigated through Data Envelopment Analysis (DEA). The study covers data for the period commencing in 2008 and ending in 2015. In our empirical investigation, we find a suboptimal level of both financial and social efficiency among MFIs in BiH. However, financial efficiency is significantly higher than social efficiency, while small-sized MFIs over perform larger ones in both the financial and social dimensions. As a result of the crisis, MFIs recorded a declining trend in efficiency up to 2010, after which they began to show signs of slow recovery. However, our results suggest that MFIs prioritized financial over social goals in recovery period following the crisis.

show abstract

Section: Microfinance In Bosnia and Herzegovinamentioning

confidence: 99%

“…Secondly, this is the first study to explore "twodimensional efficiency" in BiH, namely both financial and social efficiency. One study assessing MFIs' financial efficiency was conducted by Efendic and Hadzic (2017); however, the study does not include an analysis of both dimensions of efficiency.…”

mentioning

confidence: 99%

The social and financial efficiency of microfinance institutions: the case of Bosnia and Herzegovina

Efendic

Hadziahmetovic

2017

South East European Journal of Economics and Business

View full text Add to dashboard Cite

show abstract

“…However, when such researchers incorporate the implications of the hermeneutical research to the non-IEF economic research and contextualize their findings within such settings, the level of acceptability of such blended research in non-IEF journals will be high. There are more challenges in writing IEF articles for this reason, but they are not insurmountable (Efendić et al , 2017).…”

Section: Results and Analysesmentioning

confidence: 99%

Publishing Islamic economics and finance research: polemics, perceptions and prospects

Ali

Alquradaghi

2019

IMEFM

View full text Add to dashboard Cite

Purpose The purpose of this study is to examine the academic polemics, stakeholder perceptions and publishing prospects for Islamic economics and finance (IEF) research. Design/methodology/approach This study adopts both quantitative and qualitative methods with a view to understanding the aforementioned aspects of published IEF research. The main part of the study constitutes searching through selected databases to identify leading journals and publishing outlets for IEF research. To supplement and support the main part, the study also conducted a survey of IEF experts and interviewed major stakeholders with a view to understanding the current trends and future perspectives of IEF research. The study also attempts to bring to the fore less explored aspects of IEF research, which has the potential of shaping the future trends in both the academia and the industry. Findings Apart from challenges such as inadequate funding opportunities, differences in worldview, among others, the field is still in need of improvement in the quality of research despite the increasing interest in IEF research and the level of research output over the past three decades. The study also finds that IEF has yet to establish core IEF journals reporting the research findings, which creates a perception among IEF researchers that non-IEF journals have a greater academic standing than IEF journals. Research limitations/implications It must be highlighted that the study has been limited to specific well-known research databases; therefore, future studies may explore other leading databases such as Web of Science and examine the quality of IEF research published in journals indexed in such databases. Practical implications It is expected that mainstream journals in economics and finance will publish more of IEF research, which has been facilitated recently by the increasing trends of special issues of such journals dedicated to IEF research. Originality/value The study brings to the fore a less explored aspect of Islamic economics and finance, which has the potential of shaping future trends in both the academia and the industry.

show abstract

Financial and social efficiency in the Yemen microfinance institutions

Al-Awlaqi

Aamer

2019

IMEFM

View full text Add to dashboard Cite

Purpose The purpose of this paper is to discover the most important productivity determinants of Yemeni microfinance institutions. In addition, this study tests the most appropriate tool to measure productivity in such unique industry. Design/methodology/approach The authors applied data envelopment analysis (DEA) with the variable return to scale after testing the technology return to scale assumption. Then, they used DEA with bootstrapping technique to overcome the borne biasness in the conventional DEA analysis. Finally, the authors presented the Hicks–Moorsteen (total factor productivity [TFP]) as the most suitable tool for the technology presented in this study. Findings In this paper, the authors found a prolonged deterioration in the productivity scores of microfinance institutions in Yemen. This study highlights the importance of operating in rural areas to improve micro finance institutions’ (MFIs’) productivity. In contrast, they found no significant differences in productivity, neither between microfinance banks and non-governmental organizations nor between Islamic and non-Islamic MFIs. Research limitations/implications This study extends previous research in the area of productivity and its determinants. It also adds to the body of productivity knowledge and methodology within the context of the microfinance industry in Yemen. Originality/value The study discovered new productivity determinants and re-assessed the importance of some already known ones. These determinants have been studied for the first time in Yemen’s microfinance industry and have contributed to answer the question of what is the most suitable productivity method that should be used. This study proved that the Hicks–Moorsteen TFP and the variable return to scale assumption are the only suitable methods to study productivity in the microfinance industry.

show abstract

Business Model and Operational Efficiency of Microfinance in Bosnia and Herzegovina: Lessons for Islamic Microfinance

Cited by 4 publications

References 12 publications

The social and financial efficiency of microfinance institutions: the case of Bosnia and Herzegovina

The social and financial efficiency of microfinance institutions: the case of Bosnia and Herzegovina

Publishing Islamic economics and finance research: polemics, perceptions and prospects

Financial and social efficiency in the Yemen microfinance institutions

Contact Info

Product

Resources

About