The impact of the organizational structure on the performance of microfinance institutions using data envelopment analysis

Abstract

We apply data envelopment analysis to compare the relative efficiency of different forms of microfinance institutions (MFIs): banks, cooperatives, nongovernmental organizations (NGOs), and nonbank financial institutions. We find that MFIs that operate as NGOs are technically more efficient than bank MFIs. Using the same inputs (labor and physical and financial assets), NGOs serve more clients (number of borrowers or depositors) than bank MFIs.

Citation

Sedzro, K., Keita, M. and Assogbavi, T. (2010), "The impact of the organizational structure on the performance of microfinance institutions using data envelopment analysis", Lawrence, K.D. and Kleinman, G. (Ed.) Applications in Multicriteria Decision Making, Data Envelopment Analysis, and Finance (Applications of Management Science, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 293-308. https://doi.org/10.1108/S0276-8976(2010)0000014018