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Can Market Orientation Sustain Management of Microfinance Institutions? The Case Study of Amanah Ikhtiar Malaysia (AIM)

In: A New Paradigm for International Business

Author

Listed:
  • Soheil Kazemian

    (Universiti Teknologi Mara (UiTM))

  • Rashidah Abdul Rahman

    (King Abdul Aziz University (KAU))

  • Zuraidah Mohd Sanusi

    (Universiti Teknologi Mara (UiTM))

  • Adewale Abideen Aedyemi

    (International Islamic University Malaysia (IIUM))

Abstract

This paper aims at providing insights into how the three dimensions of market orientation, namely, customer orientation, competitor orientation, and inter-function coordination, affect the management sustainability of Amanah Ikhtiar Malaysia (AIM) as the largest microfinance institution in Southeast Asia. In a cross-sectional survey, Partial Least Squares (PLS) was used to test the hypotheses on a convenience sample of 67 % of AIM’s top management level. In addition, 400 customers and 300 employees from various branches based on their customers’ number were also chosen randomly. The results provided empirical evidences that indicate management sustainability is influenced by customer orientation and inter-function coordination significantly. In contrast, competitor orientation has insignificant effects on management sustainability of AIM. The result of the paper enhanced further the literature in understanding the long-term sustainable social performance-based market orientation.

Suggested Citation

  • Soheil Kazemian & Rashidah Abdul Rahman & Zuraidah Mohd Sanusi & Adewale Abideen Aedyemi, 2015. "Can Market Orientation Sustain Management of Microfinance Institutions? The Case Study of Amanah Ikhtiar Malaysia (AIM)," Springer Proceedings in Business and Economics, in: Hadrian Geri Djajadikerta & Zhaoyong Zhang (ed.), A New Paradigm for International Business, edition 127, chapter 0, pages 271-283, Springer.
    • Handle: RePEc:spr:prbchp:978-981-287-499-3_14
    DOI: 10.1007/978-981-287-499-3_14
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    Cited by:

    1. Kamaluddin, Amrizah & Kassim, Nawal & Alam, Md. Mahmudul & Abu Samah, Siti Akmar, 2019. "Human Capital Accountability and Construct: Evidence from Islamic Microfinance Institutions in Malaysia," SocArXiv 962yu, Center for Open Science.

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