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


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.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Operations & Information Management
Additional Information: © 2015, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
Uncontrolled Keywords: Data Envelopment Analysis,efficiency,Islamic microfinance,microfinance institutions,performance measurement,Strategy and Management,Management Science and Operations Research,Statistics, Probability and Uncertainty,Economics and Econometrics,Geography, Planning and Development
Publication ISSN: 1873-6041
Last Modified: 08 Apr 2024 07:11
Date Deposited: 26 Aug 2015 20:36
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2015-06
Published Online Date: 2015-01-27
Authors: Widiarto, Indra
Emrouznejad, Ali (ORCID Profile 0000-0001-8094-4244)

Export / Share Citation


Additional statistics for this record