IDEAS home Printed from
   My bibliography  Save this paper

Management Characteristics of Cambodian Microfinance Institutions: Operational Efficiency and Management Objectives


  • OKUDA, Hidenobu
  • SHI, Minjie


It is difficult to decide how to measure the efficiency of microfinance institutions' management. This is because, different from other profit maximizing financial institutions, an essential management characteristic of microfinance institutions involves working toward greater access for the poor. This paper seeks to describe the characteristics and efficiency of the management of microfinance institutions in Cambodia, in terms of microfinance institutions' specific objective of expanding access to the poor, by using the analytical methodology described in the work of Gutiérrez-Nieto et al. (2007), with respect to microfinance institutions in Latin America. The analysis was conducted in two steps: in Step 1, the operating efficiency indices of major microfinance institutions were measured, by conducting a Data Envelopment Analysis (DEA) using data from the National Bank of Cambodia's annual publications. Next, in Step 2, a principal component analysis was conducted using the efficiency indices measured in Step 1, and the management characteristics of each microfinance institution were analyzed. According to the results of our analyses, although great diversity exists among microfinance institutions in Cambodia, (1) large-scale microfinance institutions exhibit higher overall efficiency, (2) approximately one-third of microfinance institutions are oriented towards access for the poor, and (3) access-oriented institutions also exhibiting high overall efficiency comprised less than one-fifth of all microfinance institutions. These results suggest a need for policy that promotes expanding the scale of microfinance institutions, while simultaneously maintaining their orientation toward access for the poor.

Suggested Citation

  • OKUDA, Hidenobu & SHI, Minjie, 2016. "Management Characteristics of Cambodian Microfinance Institutions: Operational Efficiency and Management Objectives," Discussion Papers 2016-03, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:econdp:2016-03

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos & Mar Molinero, Cecilio, 2007. "Microfinance institutions and efficiency," Omega, Elsevier, vol. 35(2), pages 131-142, April.
    2. OKUDA, Hidenobu & AIBA, Daiju, 2014. "Determinants of Operational Efficiency and Total Factor Productivity Change of Major Cambodian Financial Institutions : A Data Envelopment Analysis during the Period of 2006-2013," Discussion Papers 2014-14, Graduate School of Economics, Hitotsubashi University.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Cambodia; Microfinance Institutions; DEA; Principle Component Analysis;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:econdp:2016-03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.