Skip to main content
SpringerLink
Log in

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

  • Conference paper
A New Paradigm for International Business

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

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.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ahmad I (2003) Current situation of microfinance in Malaysia and its issues. Agriculture Bank of Malaysia, Kuala Lumpur

    Google Scholar 

  • Armstrong S, Collopy F (1996) Competitor orientation: effects of objectives and information on managerial decisions and profitability. J Mark Res 33(2):385–394

    Article  Google Scholar 

  • Bhuian SN, Habib M (2005) The relationship between entrepreneurship, market orientation and performance: a test in Saudi Arabia. J Transl Manag 10(1):79–98

    Google Scholar 

  • Bank Negara Malaysia (2011) The annual report. Retrieved on Aug2013 from: http://www.bnm.gov.my/index.php?ch=en_publication_catalogue&pg=en_publication_bnmar&ac=89&yr=2011

  • Chamhuri S, Quinones B (2000) Microfinance in Malaysia: aiming at success. Microfinance and poverty alleviation: 180–199

    Google Scholar 

  • Cheney H, Nheu N, Vecellio L (2004) Sustainability as social change: values and power in sustainability discourse. Sustainability and social science: Roundtable proceedings: 225–246

    Google Scholar 

  • Crittenden VL, Crittenden WF, Ferrell LK, Ferrell O, Pinney CC (2011) Market-oriented sustainability: a conceptual framework and propositions. J Acad Mark Sci 39(1):71–85

    Article  Google Scholar 

  • Deshpandé R, Farley JU (1998) Measuring market orientation: generalization and synthesis. J Mark Focus Manag 2(3):213–232

    Article  Google Scholar 

  • Fontaine C, Haarman A, Schmid S (2006) The Stakeholder Theory. dalam http://www.edalys.fr/documents/Stakeholders%20theory.pdf. Accessed 11 Nov 2011

  • Frambach RT, Prabhu J, Verhallen TM (2003) The influence of business strategy on new product activity: the role of market orientation. Int j res mark 20(4):377–397

    Article  Google Scholar 

  • Freeman RE, Wicks AC, Parmar B (2004) Stakeholder theory and “the corporate objective revisited”. Organ Sci 15(3):364–369

    Google Scholar 

  • Ghani U, Mahmood Z (2011) Factors influencing performance of microfinance firms in Pakistan: focus on market orientation. Int J Acad Res 3(5):125–132

    Google Scholar 

  • Gresham G, Hafer J, Markowski E (2006) Inter-functional market orientation between marketing departments and technical departments in the management of the new product development. Process J Behav Appl Manage 8(1):43–65

    Google Scholar 

  • Grinstein A (2008) The effect of market orientation and its components on innovation consequences: a meta-analysis. J Acad Mark Sci 36(2):166–173

    Article  Google Scholar 

  • Hair JF, Ringle CM, Sarstedt M (2011) PLS-SEM: indeed a silver bullet. J Mark Theory Pract 19(2):139–152

    Article  Google Scholar 

  • Hair JF, Sarstedt M, Ringle CM, Mena JA (2012) An assessment of the use of partial least squares structural equation modeling in marketing research. J Acad Mark Sci 40(3):414–433

    Article  Google Scholar 

  • Im S, Workman JP Jr (2004) Market orientation, creativity, and new product performance in high-technology firms. J Mark 68:114–132

    Article  Google Scholar 

  • Israel GD (1992) Determining sample size: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS

    Google Scholar 

  • Jaworski B, Kohli A (1993) Market orientation: Antecedents and consequences. J Mark 57:53–70

    Article  Google Scholar 

  • Kohli AK, Jaworski BJ (1990) Market orientation: the construct, research propositions, and managerial implications. J Mark 54:1–18

    Article  Google Scholar 

  • Li PJ, Rouyih H (2007) Microfinance In Malaysia. In: Mun HW (ed) Malaysian economic development issues and debates. Malaysian Economics Development, Malaysia, pp 133–143

    Google Scholar 

  • Matsuno K, Mentzer JT (2000) The effects of strategy type on the market orientation-performance relationship. J Mark 64(4):1–16

    Article  Google Scholar 

  • McGuire PB, Conroy JD, Thapa GB (1998) Getting the framework right: policy and regulation for microfinance in Asia: Foundation for Development Cooperation Brisbane

    Google Scholar 

  • Megicks P, Mishra A, Lean J (2005) Enhancing microfinance outreach through market-oriented new service development in Indian regional rural banks. Int J Bank Mark 23(1):107–125

    Article  Google Scholar 

  • Mersland R, Øystein Strøm R (2009) Performance and governance in microfinance institutions. J Bank Financ 33(4):662–669

    Article  Google Scholar 

  • Narver JC, Slater SF (1990) The effect of a market orientation on business profitability. J Mark 54:20–35

    Article  Google Scholar 

  • Ngai JCH, Ellis P (1998) Market orientation and business performance: some evidence from Hong Kong. Int Mark Rev 15(2):119–139

    Article  Google Scholar 

  • Ngansathil W (2001) Market orientation and business performance: empirical evidence from Thailand. The University of Melbourne

    Google Scholar 

  • Nunnally J (1978) Psychometric methods. McGraw-Hill, New York

    Google Scholar 

  • O’Cass A, Ngo LV (2007) Market orientation versus innovative culture: two routes to superior brand performance. Eur J Mark 41(7/8):868–887

    Article  Google Scholar 

  • Outlook WE (2012) Malaysia – Real GDP growth: World Data Atlas. http://knoema.com/atlas/Malaysia/GDP-growth

  • Pelham AM, Wilson DT (1995) A longitudinal study of the impact of market structure, firm structure, strategy, and market orientation culture on dimensions of small-firm performance. J Acad Mark Sci 24(1):27–43

    Article  Google Scholar 

  • Qayyum A, Ahmad M (2006) Efficiency and sustainability of Micro Finance Institutions in South Asia. South Asian Network of Economic Research Institutes (SANEI)

    Google Scholar 

  • Ramli M (2001) Amanah Ikhtiar Malaysia: the Oldest GB Replication. Source: http://www.grameen-info.org/dialogue/dialogue47/crMalaysia.html. Accessed 21 Sept 2013

  • Reichheld FF, Sasser WE (1990) Zero defections: quality comes to services. Harv Bus Rev 68(5):105–111

    Google Scholar 

  • Ruekert RW (1992) Developing a market orientation: an organizational strategy perspective. Int j res mark 9(3):225–245

    Article  Google Scholar 

  • Sebhatu SP (2009) Sustainability performance measurement for sustainable organizations: beyond compliance and reporting. Karlstad University, Karlstad

    Google Scholar 

  • Singh S, Ranchhod A (2004) Market orientation and customer satisfaction: evidence from British machine tool industry. Ind Mark Manag 33(2):135–144

    Article  Google Scholar 

  • SME (2011) SME annual report. In: D. SME (ed) Census 2011

    Google Scholar 

  • Szymanski DM, Henard DH (2001) Customer satisfaction: a meta-analysis of the empirical evidence. J Acad Mark Sci 29(1):16–35

    Article  Google Scholar 

  • The World Bank (2012) Poverty and inequality statistics. World Data Atlas. http://knoema.com/atlas/Malaysia/Poverty-level (Vol Mar 12)

  • Tortosa V, Moliner MA, Sánchez J (2009) Internal market orientation and its influence on organisational performance. Eur J Mark 43(11/12):1435–1456

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Accounting Research Institute (ARI), Universiti Teknologi Mara (UiTM), Shah Alam, Malaysia

    Soheil Kazemian & Zuraidah Mohd Sanusi

  2. Faculty of Economics and Administration, King Abdul Aziz University (KAU), Jeddah, Kingdom of Saudi Arabia

    Rashidah Abdul Rahman

  3. Accounting Research Institute (ARI), International Islamic University Malaysia (IIUM), Gombak, Selangor, Malaysia

    Adewale Abideen Aedyemi

Authors
  1. Soheil Kazemian
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rashidah Abdul Rahman
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Zuraidah Mohd Sanusi
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Adewale Abideen Aedyemi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Soheil Kazemian .

Editor information

Editors and Affiliations

  1. Edith Cowan University, Perth, West Australia, Australia

    Hadrian Geri Djajadikerta

  2. Edith Cowan University, Perth, West Australia, Australia

    Zhaoyong Zhang

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer Science+Business Media Singapore

About this paper

Cite this paper

Kazemian, S., Abdul Rahman, R., Mohd Sanusi, Z., Aedyemi, A.A. (2015). Can Market Orientation Sustain Management of Microfinance Institutions? The Case Study of Amanah Ikhtiar Malaysia (AIM). In: Djajadikerta, H., Zhang, Z. (eds) A New Paradigm for International Business. Springer Proceedings in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-287-499-3_14

Download citation

Publish with us

Policies and ethics

Search

Navigation