The Impact of Social Media on the Performance of Microfinance Institutions in Developing Countries:A Quantitative Approach

PurposeOver the last few decades, microfinance industry is argued to have played a constructive role in alleviating poverty level and providing the underprivileged with access to financial services. Statistics from the World Bank reveal that, currently, only 4% of the underprivileged have been served out of the 3 billion+ potential clients. Such results are due to several claims, particularly the operational and financial challenges faced by microfinance institutions (MFIs) in the constant flux inviting more attentions towards its performance. While explicit attention is given by many researchers towards mobile banking and information and communication technology (ICT) in improving the MFIs’ performance, the study on how social media, as a rapidly growing online phenomenon, can impact on the MFIs’ performance remains scarce. As such, this study aims to investigate this impact based on four dimensional performance indicators: efficiency, financial sustainability, portfolio quality and outreach.Design/methodology/approachA model is proposed and tested to ascertain the relationship between social media applications and organisational performance. In so doing, web-based questionnaires have been used to collect data from MFI employees in developing countries. Results reveal a significant influence of the social media over the MFIs’ performance, offering valuable insights into both researchers and practitioners in the domain of microfinance, as well as social media—conforming that the adoption of social media as marketing, advertising and communication tools may significantly improve the MFIs’ performance.FindingsThe results demonstrate that there is a positive and significant impact of social media use within microfinance on the key indicators of MFIs. They also show that the highest impact of social media usage within the microfinance is on the portfolio quality. In addition, it was found that marketing and advertising; communication and sales and distribution are the main areas where social media is able to support while social networking websites are the most popular platforms employed in MFIs.Originality/valueThis study adds to the existing literature few theoretical and practical aspects. First, this study developed a model for assessing the value of social media as a new phenomenon within this type of organisation. Second, it offers microfinance sponsors, managers and policy makers with a frame of reference to understand what social media platform can be deployed for each purpose. Third, with the identification of the main MFIs’ performance indicators, this research provided a reference of performance measurement guide for microfinance industry when assessing different technological employment

Critical analysis of the impact of big data analytics on supply chain operations

Undoubtedly, due to the increasingly competitive pressures and the stride of varying demands, volatility and disturbance have become the standard in today’s global markets. The spread of Covid-19 is a prime example of that. Supply chain managers are urged to rethink their competitive strategies to make use of Big Data Analytics (BDA), due to the increasing uncertainty in both demand and supply side, the competition among the supply chain partners and the need to identify ways to offer personalised products and services. With many supply chain executives recognising the need of ‘improving with data’, supply chain businesses need to equip themselves with sophisticated BDA methods/techniques to create valuable insights from big data, thus, enhancing the decision-making process and optimising the efficiency of Supply Chain Operations (SCO). This paper proposes the building blocks of a theoretical framework for understanding the impact of BDA on SCO. The framework is based on a Systematic Literature Review (SLR) on BDA and SCO, underpinned by Task-Technology-Fit theory and Institutional Theory. The paper contributes to the literature by building a platform for future work on investigating factors driving and inhibiting BDA impact on SCO

The impact of social media on the performance of microfinance institutions in developing countries

This thesis was submitted for the award of Doctor of Philosophy and was awarded by Brunel University LondonOver the last few decades, microfinance industry has played an essential role in alleviating poverty level and helping the underprivileged, by enabling access to myriads of financial services. Statistics from the World Bank reveals that, currently, only 4% of the underprivileged were served out of the 3 billion potential clients. Such results were due to several claims, particularly the operational and financial challenges faced by the MFIs in the constant flux, inviting more attentions towards its performance. While explicit focuses were given by many researchers towards mobile banking and Information Communication Technology (ICT) and online services in improving the MFIs performance, the study on how Social Media, as a rapidly growing online phenomenon, could affect the MFIs performance remain scarce. Hence, this study was aimed at investigating and clarifying the impact of social media on MFIs, based on four dimensional performance indicators: efficiency, financial sustainability, portfolio quality, and outreach. A model was developed utilising Resource Based-View (RBV) Theory, to test the relationship between social media application and organisational performance. A quantitative approach has been adopted employing from web-based questionnaires, to collect data from MFIs employees in developing countries such as Kenya, India and Jordan. Structured Equation Modelling (SEM) technique (i.e. SPSS and AMOS 20 software) was used as a tool to analyse the responses. Results revealed a significant influence of the social media over the MFIs performance, offering valuable insights to both researchers and practitioners in the domain of micro-finance, as well as social media – conforming that the adoption of social media as marketing, advertising and communication tools could significantly improve the MFIs performance. Keywords: Microfinance, Microfinance Institution Performance, Social Media, Resource Based View Theory