The relationship between the social performance and operational sustainability of Vietnam's formal microfinance institutions Online publication date: Fri, 03-Dec-2021
by Van Duong Ha
International Journal of Business and Emerging Markets (IJBEM), Vol. 14, No. 1, 2022
Abstract: Operational sustainability and social performance are factors affecting the operations and goals of the microfinance institutions (MFIs). The major intention of this study was to discover the interaction between social performance and operational sustainability and to examine factors that affect the social performance and operational sustainability of formal MFIs. The study analysed in panel data with three models from 2010 to 2018 of (36) all formal MFIs in Vietnam. The results found bidirectional interactions between the social performance and operational sustainability. In particular, there was the interactive relationship between breadth of outreach and operational sustainability in a positive trend, there was a trade-off between depth of outreach and operational sustainability. This study offers policy implication and new insights for developing more sustainable formal MFIs going forward.
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