Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar

The performance of microfinance institutions (MFIs) is crucial for ensuring the efficient utilisation of funds deposited into the microfinance programme by donors, as well as for assisting regulators in monitoring the institutions. Assessing the performance of MFIs involves examining its development...

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Main Authors:	Hashim, Maryam Jameelah, Alhabshi, Syed Musa, Mohd Ishar, Nor Irvoni
Format:	Article
Language:	English
Published:	Penerbit UiTM (UiTM Press) 2018
Subjects:	Capital. Capitalism Financial management. Business finance. Corporation finance Working capital
Online Access:	http://ir.uitm.edu.my/id/eprint/23515/ http://ir.uitm.edu.my/id/eprint/23515/1/AJ_MARYAM%20JAMEELAH%20HASHIM%20SMRJ%2018.pdf

id	uitm-23515
recordtype	eprints
spelling	uitm-235152019-03-19T01:15:32Z http://ir.uitm.edu.my/id/eprint/23515/ Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar Hashim, Maryam Jameelah Alhabshi, Syed Musa Mohd Ishar, Nor Irvoni Capital. Capitalism Financial management. Business finance. Corporation finance Working capital The performance of microfinance institutions (MFIs) is crucial for ensuring the efficient utilisation of funds deposited into the microfinance programme by donors, as well as for assisting regulators in monitoring the institutions. Assessing the performance of MFIs involves examining its development towards accomplishing its goals. Therefore, MFIs need to ascertain the challenges to maintain their sustainability and sustain their operations. Additionally, MFIs should focus on aspects such as intellectual capital (IC) to ensure future sustainability. The aim of this research is to examine how IC dimensions, specifically, customers, structure, human, and social capital, influence MFIs performance. A cross-sectional survey design was used to gather data from 145 managers (48% response rate) from MFIs in Malaysia. In order to determine the sample size of the study, a purposive sampling method was employed. The research model was analysed by using Partial least square-structural equation (PLS-SEM). Subsequently, the research model was validated using Smart PLS 3.2.5 and the proposed study hypothesis. The findings confirm that structural capital and customer capital positively influence the performance of MFIs, except for social and human capital. The research model explains 67.6% of the substantial amount of variance in MFIs performance. This research theoretically contributes to the extension of resource-based view (RBV) and social capital theory in predicting the sustainability of MFIs. All the factors of IC were confirmed to improve the performance of MFIs. This study proposed several remarkable recommendations for microfinance institutions which suggested that MFIs’ managers should resolve their organisational issues promptly. Furthermore, they should portray sensible consideration for their institutions by taking care of IC and encouraging the practice of recognising intangible assets, especially their employees’ expertise and capabilities. Penerbit UiTM (UiTM Press) 2018 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/23515/1/AJ_MARYAM%20JAMEELAH%20HASHIM%20SMRJ%2018.pdf Hashim, Maryam Jameelah and Alhabshi, Syed Musa and Mohd Ishar, Nor Irvoni (2018) Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar. Social and Management Research Journal, 15 (2). pp. 1-22. ISSN 1675-7017
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Capital. Capitalism Financial management. Business finance. Corporation finance Working capital
spellingShingle	Capital. Capitalism Financial management. Business finance. Corporation finance Working capital Hashim, Maryam Jameelah Alhabshi, Syed Musa Mohd Ishar, Nor Irvoni Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar
description	The performance of microfinance institutions (MFIs) is crucial for ensuring the efficient utilisation of funds deposited into the microfinance programme by donors, as well as for assisting regulators in monitoring the institutions. Assessing the performance of MFIs involves examining its development towards accomplishing its goals. Therefore, MFIs need to ascertain the challenges to maintain their sustainability and sustain their operations. Additionally, MFIs should focus on aspects such as intellectual capital (IC) to ensure future sustainability. The aim of this research is to examine how IC dimensions, specifically, customers, structure, human, and social capital, influence MFIs performance. A cross-sectional survey design was used to gather data from 145 managers (48% response rate) from MFIs in Malaysia. In order to determine the sample size of the study, a purposive sampling method was employed. The research model was analysed by using Partial least square-structural equation (PLS-SEM). Subsequently, the research model was validated using Smart PLS 3.2.5 and the proposed study hypothesis. The findings confirm that structural capital and customer capital positively influence the performance of MFIs, except for social and human capital. The research model explains 67.6% of the substantial amount of variance in MFIs performance. This research theoretically contributes to the extension of resource-based view (RBV) and social capital theory in predicting the sustainability of MFIs. All the factors of IC were confirmed to improve the performance of MFIs. This study proposed several remarkable recommendations for microfinance institutions which suggested that MFIs’ managers should resolve their organisational issues promptly. Furthermore, they should portray sensible consideration for their institutions by taking care of IC and encouraging the practice of recognising intangible assets, especially their employees’ expertise and capabilities.
format	Article
author	Hashim, Maryam Jameelah Alhabshi, Syed Musa Mohd Ishar, Nor Irvoni
author_facet	Hashim, Maryam Jameelah Alhabshi, Syed Musa Mohd Ishar, Nor Irvoni
author_sort	Hashim, Maryam Jameelah
title	Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar
title_short	Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar
title_full	Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar
title_fullStr	Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar
title_full_unstemmed	Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar
title_sort	does intellectual capital explain the financial performance of malaysia mfis? / maryam jameelah hashim, syed musa alhabshi and nor irvoni mohd ishar
publisher	Penerbit UiTM (UiTM Press)
publishDate	2018
url	http://ir.uitm.edu.my/id/eprint/23515/ http://ir.uitm.edu.my/id/eprint/23515/1/AJ_MARYAM%20JAMEELAH%20HASHIM%20SMRJ%2018.pdf
first_indexed	2023-09-18T23:10:50Z
last_indexed	2023-09-18T23:10:50Z
_version_	1777418791389495296

Does intellectual capital explain the financial performance of Malaysia MFIs? / Maryam Jameelah Hashim, Syed Musa Alhabshi and Nor Irvoni Mohd Ishar

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