International Journal of Trade, Economics and Finance, Vol. 5, No. 2, April 2014

 

AIM’S ACCOUNTABILITY IN FINANCIAL SUSTAINABILITY : THE ROLE OF MARKET ORIENTATION


Soheil Kazemian, Rashidah Abdul Rahman, Zuraidah Mohd Sanusi and Zuraeda Ibrahim

 Abstract  

The paper aims at providing insights into how three dimensions of market orientation namely; customer orientation, competitor orientation and inter-function coordination affect the financial performance of Amanah Ikhtiar Malaysia (AIM) as the oldest microfinance institution in South East Asia. Using a cross sectional survey, Partial Least Squares (PLS) as a variance-based structural equation modelling (SEM), the current study examines the AIM’s accountability on market orientation in financial sustainability. The results provided empirical evidences that indicate customer orientation and inter-function coordination significantly affect financial performance of AIM. Nevertheless, competitor orientation has a negative and insignificant effect on sustainable financial performance of AIM. The result of the paper enhanced further the literature in understanding the long-term sustainable financial performance-based market orientation.