• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.183-192
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• 2020

The purpose of this paper is to investigate the determinants of the Operational Self-Sustainability (OSS) of Vietnamese microfinance institutions (MFIs). This research uses both qualitative and quantitative research methods: (i) qualitative research was via in-depth interviews with ten microfinance practitioners, policymakers and researchers; (ii) quantitative research was conducted by using panel data of 34 MFIs in the period 2011-2015 with binary logistics and OLS regressions. Results are as follows: (i) MFIs' OSS in Vietnam are mainly determined by five key factors: portfolio at risk (PAR>30), capital structure, gross loan portfolio, scope of activities and legal form; (ii) OSS are most affected by legal status (social organizations have better OSS than formal MFIs or programs/projects), location (MFIs focus in one province have higher OSS than working nationwide or just in one district), capital structure (MFIs with more equity proportion have higher OSS); (iii) surprisingly, average loan size per borrower and age of MFIs do not have statistically significant correlation with OSS. The key recommendations are: (i) MFIs should focus on its professionality and increase its equity; (ii) related stakeholders such as State Bank of Vietnam should promote the enabling ecosystem for microfinance development to enhance poverty reduction and economic development.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.115-126
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• 2022

The study's goal is to determine the amount of climate change's impact on ethnic minority (EM) households' livelihoods, as well as their adaptability to climate change and long-term viability. The research was conducted in Vietnam's Northwestern Sub-region, where ethnic minorities account for more than half of the overall population. The study uses a combination of qualitative and quantitative methods based on a survey of 480 households in 04 provinces severely affected by climate change in the Northwest sub-region of Vietnam. The results show that: climate change (extreme weather events) occurs with increasing frequency, mainly affecting the life expectancy, health, and capital of households; Vulnerable groups (women, ethnic minorities) have a poor adaptive capacity and mainly suffer the consequences of shocks, are afraid to change their livelihoods; Microfinance plays an important role in enhancing the sustainability of livelihoods through increasing capital and financial assets and reducing the vulnerability of ethnic minority households. Finally, research has some solutions for microfinance - special credit specifically for ethnic minority households in the Northwest Sub-region: support for microfinance advice, home credit with transition orientations to adapt to climate change response and relieves its impact on the social lives.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.3
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• pp.65-73
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• 2012

Microfinance has been an important tool for the economic growth and poverty alleviation. But the success factors and risk factors have not been synthesized in academic literature. This article has paid attention to success factors and potential risk of the Grameen Bank. Grameen Bank methodology is almost the reverse of the conventional banking methodology. Conventional banking is based on the principle that the more you have, the more you can get. Founder of Grameen Bank, Professor Yunus pointed out that, "The least you have the highest you have the priority to receive a loan". On the basis of theoretical literature, there have been different kinds of success factors of microfinance observed in this paper. Key success factors of Grameen Bank are like these: innovation, strict administrative structure, adaptation and learning practice, incentive system. Complementary services such as business consulting and brokerage will contribute to borrowers' economic performance development.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.1053-1064
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• 2020

This study aims to determine the perceptions of Islamic Financial Cooperative (BMT) managers in the Indonesian BMT Association on the acceptance of core banking technology. The Technology Acceptance Model (TAM) is used because it has simple theoretical characteristics (parsimony) and is supported by data (verifiability). This study develops the TAM model by integrating new variables -perceptions of maqashid sharia, perceptions of economies of scale, perceptions of market structure, and perceptions of technology procurement costs. These new variables are used to measure intention in using technology and actual usage in BMT operations. This study used PLS-SEM with smartPLS 3. The study was conducted in Central Java in six ex-Residency at 35 BMT with 300 respondents consisting of six levels of position level. The research found that maqashid sharia and market structure directly influenced the intention of BMT managers in using core banking technology. This new finding strengthens a theoretical model regarding the role of maqashid sharia in the acceptance of information technology in BMT. In addition, the perception of economies of scale has no significant effect on intention in using technology or its actual usage. The perception variable of technology procurement costs was found to have no significant effect on intention in using technology.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.643-655
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• 2021

This study investigated the effect of the Amanah Ikhtiar Malaysia (AIM) microfinancing on the economic, social, and household empowerment of women borrowers in Malaysia. The study used a quantitative approach based on primary data. For this study, the participants comprised 384 AIM borrowers from Terengganu, Kelantan, and Pahang in the east coast region of Malaysia. Purposive stratified random sampling was used as well as the Krejcie and Morgan method to count the number of samples. Descriptive statistics and the Women Empowerment Index (WEI) were used in the analysis. The study findings reveal that AIM microfinancing affects the economic, social, and household empowerment of women borrowers in Malaysia. However, in comparing the three categories, women enjoyed more freedom in social and household decision-making than in economic decision-making. The present study recommends policies for the successful and effective operation of microfinance programs by providing the necessary guidelines for the control of AIM loan for women borrowers; increasing income-generating activities, sufficient access of credit, and proper education for the borrowers; and giving economic freedom of choice with necessary skill training policymaking options for the government and NGOs with the aim to improve the total household income and empowerment of the microcredit borrowers in Malaysia.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.549-561
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• 2021

This study aims to identify the role of organizational behavior and intellectual capital on risk management implementation and Village Credit Institutions (called LPD) performance. The LPD population is 1,256 units spread across nine districts/cities in Bali. This research was conducted at the LPD as the only microfinance institution based on local wisdom in traditional villages in Bali Province, Indonesia. Based on sampling using the Slovin method, there were 139 LPD as sampled in this study. The respondent in this study was the Head of the LPD. LPD performance measurement is using the balanced scorecard method that combines financial and non-financial aspects. This study also investigates risk management's role as a mediator in the relationship between organizational behavior and intellectual capital on the LPD performance. Methods of data collection using a survey. The questionnaire was given to 139 LPD chairman who was respondents in this survey. The data analysis technique used SEM-PLS. This study succeeded in confirming Resource-Based View Theory that organizational behavior and intellectual capital affect risk management and organization performance. These results also prove risk management's role as a mediation for the relationship between organizational behavior and intellectual capital on organizational performance.

• The Journal of the Korea Contents Association
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• v.13 no.1
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• pp.234-246
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• 2013

Microcredit was first introduced by non-profit organization in early 2000s and the Ministry of Health and Welfare promoted the support policy of self-support community and the hope-developing bank. And then, microcredit policy was suddenly changed while the microfinance policy was promoted in 2009. For example, there were changes of the control tower of the policy, the emphasis on financial approach from welfare approach, the establishment of the operation agency. This study analyzed the policy changes on microcredit policy using the framework of Hood(1994) and Joo(1999) in order to analyze causes of sudden changes. As results, the reason affecting microcredit policy change was changes of an unemployment rate and the financial environment, the change of outside situation, the policy idea of the middle practicalism of government and the success of the experiment in microcredit, the passive intervention of stakeholders, the internal factors on the policy custom. So the results suggests that the policy is produced illogically because of the absence of stakeholders' participation.

• Journal of Information Technology Applications and Management
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• v.28 no.5
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• pp.51-60
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• 2021

The main purpose of this study is to examine the factors that influence the employee's intention to leave the current job. A descriptive survey design was conducted and primary data were collected by using questionnaire. The study was based on random sampling; a sample of 200 was drawn from the employees who work in different micro finance institutions in Nepal. For the data analysis percentage analysis and chi square-test were used. The study revealed that salary, working condition, career growth, supervisor behavior and outstation influence the job quitting process. The study also defined the association between the reasons for leaving job such as salary, working condition, career growth supervisor behaviour & outstation and satisfaction, time spent in the organisation, training & development facility, frequency of changing job & encourage from immediate boss. This study establishes the importance of intentions of employees to quit job and provides further evidence in revealing the intentions to quit among the employees.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.637-646
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• 2021

The main objective of this study was to investigate the impact of access to finance on the different dimensions of poverty. To achieve the objectives of the study, the participants/beneficiaries of the Mudra scheme were included and sample of target respondents was extracted through multistage random sampling technique. The sample for the study was taken from the Union Territory of Jammu and Kashmir of India. The study further utilized secondary data from the government official websites and lead banks. A paired t-test was applied to test the impact of access to finance across the various dimensions of poverty by constructing the Multidimensional Poverty Index(MPI), after checking the normality of the data. MPI incorporates dimensions such as education, health, and standard of living.The finding of the study revealed that dimensions of poverty responded positively to access to finance. The study shows that larger access to finance has helped in reducing the multidimensional poverty by having moderate, but positive impact on the standard of living, health, and education, thereby improving the lives of the poor. The present study identified that the level of impact of access to finance is moderate and further explains its importance for policy implications.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.931-941
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• 2021

The study focuses on the relationship between SB, corporate social responsibility (CSR), and the emerging economy. Thereafter it highlights the types, principles, and funding cycle of SB with the evidence from Grameen Bank, which is a globally well-recognized microfinance venture in Bangladesh established by the Nobel Laureate Dr. Muhammad Yunus. This study employs qualitative analysis to illustrate an architectural overview of the SB model by collecting secondary data from various publications related to the topic and published data of Grameen Bank. Finally, this paper illustrates the SB model along with specified characteristics, systematic framework, and main approaches for sustainable context, which could be applied as a conceptual framework for SB in any context of the emerging economy. The findings of this study suggest that the SB model is the workflow having a hierarchy of five phases namely need identification, goal setting, solution-based business plan, business plan assessment, and business plan execution. Analyzing a range of social business interventions in a developing country, Bangladesh, through the lens of five key aspects demonstrates that social business is the most efficient way to sustainably maximize the social benefits and minimize specific social issues poverty of the people affected.