Antecedents of market orientation in the microfinance industry of Pakistan.


Usman Ghani* and Zahid Mahmood

The performance of microfinance providers in Pakistan is very weak whereas market orientation has been found to significantly influence performance of firms in the general business field. This study attempted to identify those factors (antecedents) that determine the level of market orientation of microfinance providers in Pakistan. The results of the study indicated that top management emphasis on market orientation and formalization had significant effects on the level of market orientation of microfinance institutions. This suggests that for a microfinance institution to be market oriented, it needs commitment and reinforcement from the top management to motivate employees at the lower level to be sensitive and responsive to the changing borrowers’ needs and preferences. Further, policies, rules and regulations need to be in accordance with the market situations.

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