Title: The relationship between the social performance and operational sustainability of Vietnam's formal microfinance institutions

Authors: Van Duong Ha

Addresses: Saigon Institute of Economics and Technology, No. 2D1, Street No.10, Tan Quy Ward, District 7. Rep office: 97 Dang Dung, Tan Dinh Ward, District 1, HCMC, Vietnam

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.

Keywords: breath of outreach; depth of outreach; microfinance institution; operational sustainability; social performance.

DOI: 10.1504/IJBEM.2022.119429

International Journal of Business and Emerging Markets, 2022 Vol.14 No.1, pp.1 - 19

Received: 21 Dec 2019
Accepted: 02 Jan 2021
Published online: 03 Dec 2021 *

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