Title: The impact of market orientation on the performance of microfinance institutions in Yemen, a least-developed country: the mediating role of IT capability

Authors: Abdo Ali Homaid

Addresses: College of Science and Humanities at Shaqra, Shaqra University, Saudi Arabia

Abstract: The current study assessed the link between market orientation (MO) and the performance of microfinance institutions (MFIs) and evaluated the mediating role of information technology (IT) capability in this relationship from the perspective of a least-developed country, Yemen. The resource-based view (RBV) inspired and underpinned the theoretical framework. The study used a quantitative approach, analysing 125 questionnaires collected from the microfinance branch managers. Partial least squares structural equation modelling (PLS-SEM) was utilised where measurement and structural models were evaluated. This study revealed that MO was positively related to the performance of MFIs and IT capability. Moreover, findings showed that IT capability was positively associated with the performance of MFIs. More importantly, the results showed that the influence of MO on the performance of MFIs was significantly and partially mediated via IT capability. The insights of this study provide significant contributions to theory and practice.

Keywords: market orientation; MO; IT capability; microfinance institutions; MFIs; partial least squares structural equation modelling; PLS-SEM; Yemen.

DOI: 10.1504/IJPQM.2026.155579

International Journal of Productivity and Quality Management, 2026 Vol.48 No.3, pp.297 - 323

Received: 16 Sep 2023
Accepted: 09 May 2024
Published online: 06 Aug 2026 *

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