The Relationship Between Market Orientation Dimensions and Performance of Micro Finance Institutions

Microfinance institutions are established so as to alleviate poverty. However, most of microfinance institution face sustainability issues. The present study aims to give an insight on the three dimensions of market orientation which are inter-functional coordination, customer orientation and competitor orientation influences two aspects of microfinance performance (social and financial performance). The study employed PLS-SEM in testing the hypothesis. A total of 231 responses were used for analysis. The findings revealed that customer orientation, competitor orientation and inter-functional coordination are having significantly positive relationship with financial and social performance measures of microfinance institutions in Nigeria. The data of the study comprises of microfinance banks operating in North West and South west region of Nigeria, using cross sectional design. The findings of the study will contribute to the literature and assist policy makers, managing directors and researchers in better understanding the dimensions of marketing orientation.