A New Paradigm for International Business Part of the series Springer Proceedings in Business and Economics pp 271-283, (2015)


CAN MARKET ORIENTATION SUSTAIN MANAGEMENT OF MICROFINANCE INSTITUTIONS? THE CASE STUDY OF AMANAH IKHTIAR MALAYSIA (AIM)

Soheil Kazemian , Rashidah Abdul Rahman, Zuraidah Mohd Sanusi, Adewale Abideen Aedyemi



Abstract

This paper aims at providing insights into how the three dimensions of market orientation, namely, customer orientation, competitor orientation, and inter-function coordination, affect the management sustainability of Amanah Ikhtiar Malaysia (AIM) as the largest microfinance institution in Southeast Asia. In a cross-sectional survey, Partial Least Squares (PLS) was used to test the hypotheses on a convenience sample of 67 % of AIM’s top management level. In addition, 400 customers and 300 employees from various branches based on their customers’ number were also chosen randomly. The results provided empirical evidences that indicate management sustainability is influenced by customer orientation and inter-function coordination significantly. In contrast, competitor orientation has insignificant effects on management sustainability of AIM. The result of the paper enhanced further the literature in understanding the long-term sustainable social performance-based market orientation.