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

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  • Abdo Ali Homaid

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.

Suggested Citation

  • Abdo Ali Homaid, 2026. "The impact of market orientation on the performance of microfinance institutions in Yemen, a least-developed country: the mediating role of IT capability," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 48(3), pages 297-323.
    • Handle: RePEc:ids:ijpqma:v:48:y:2026:i:3:p:297-323
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