The Impact of the Emerging Marketing Mix Elements on Performance of Microfinance in Ethiopia
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Abstract
Financial inclusion is the act of guaranteeing that every individual, particularly those who are underserved and marginalised, are provided with inexpensive and suitable financial services. To this regard, the purpose of this study is to examine the influence of emerging marketing mix techniques on the performance of microfinance institutions and present a viable strategy for Ethiopian microfinance institutions as well as African MFIs. This study employs a descriptive survey and structural equation modelling to begin identifying and explaining the characteristics of variables of interest in the scenario and using a convenience sampling technique and the sample size was 329.
The study conducted path analyses based on the research assumptions. The finding revealed that 38.2% of the variance in operational efficiency is accounted for by People and policy. People, policy, and operational efficiency had a positive and significant impact on financial performance. Moreover the, results indicating that programme, policy, and operational efficiency explain 57.2% of the variance in social performance. Subsequently, the aforementioned data was utilised to examine the indirect impacts of the marketing mix on both financial and social outcomes. This study revealed that people and policy are the most important factors in achieving an organization's goals. The organisations can increase the value of their employees and better prepare them to service their customers. The management of MFIs should create a good policy from the perspective of meeting customer needs, attracting new employees, and retaining existing employees, comparing it to the policies of competitors, and modifying or revising it as necessary.
This study investigates and tests the impact of emerging marketing mix factors on financial and social performance of microfinance institutions in Ethiopia, as well was Africa MFIs and its findings confirm that modern marketing mix people, policy, and program, are important variables to explain financial and social performance.