The self‐sustainability of microfinance institutions (MFIs) is a growing concern as they work as non‐profit organizations to achieve global poverty reduction goals. This study aims to examine the MFIs' self‐sustainability using an efficiency measurement technique based on Data Envelopment Analysis (DEA). It also determines the influence of different financing sources on MFIs' self‐sustainability as well as the moderating impact of external governance on this relationship. It uses the Generalized Method of Moments (GMM) estimator to analyze the panel data from 661 MFIs in 86 countries during the 2010–2018 period. The DEA analysis reveals that MFIs are still in the intermediate stage of self‐sustainability in terms of technical and cost efficiency. The second‐stage regression results reveal that financing sources such as retained earnings and equity have a robust positive and statistically significant effect on the MFIs' self‐sustainability, implying that MFIs that rely more on these two sources are more likely to be self‐sustainable. The moderation analysis reveals that good governance accelerates the positive effect of financing sources on MFIs' efficiency. Given these empirical findings, MFIs' decision‐makers can benefit from considering their own funding and equity. Quality governance can be ensured by government agencies and regulatory bodies to support the MFIs' sustainability.

Purpose: The development of family-based microenterprises has attracted the attention of regulators, microfinance institutions and other stakeholders in either developing or least developed countries. In the finance literature, several studies have examined the determinants of the family-based microenterprises development; however, there are several venues that need to be examined. The study aims to explain the economic profit of microenterprises from resource-based theory and human capital perspectives. Design/methodology/approach: Based on critical review and theoretical grounding, this study proposes a conceptual framework, which bridges intangible resources with economic growth of microenterprises. Findings: After reviewing previous studies and based on the underpinning theoretical framework, the study finds that human capital is one of the variables that has received a little attention and yet to be examined as a moderating role. Based on the human capital theorist, individual's competencies help enterprises to perform better in business, as enterprises that possess competencies and capabilities are more likely to have higher levels of growth and profitability. Practical implications: This finding provides useful implications for the stakeholders and policymakers and contributes in the future literature. Originality/value: Based on critical review and theoretical grounding, this study proposes a conceptual framework, which bridges intangible resources with economic growth of microenterprises.

Islamic microfinance is being an ever more important instrument in fighting rural poverty in many countries. It has been trying to improve the welfare of the poor people through increasing their level of income, expenditure on consumption and improving the overall living standard. This study is, therefore, aims to survey the impact of Islamic microfinance on borrowers. By using systematic literature review, this study provided a descriptive analysis of the gathered articles. Then a comprehensive analysis on the impact of Islamic microfinance executed. This study also provided a summary of the existing prominence of work by systemized way. Further, this study focused on the areas of lacking for further study and explained the importance of the study. DOI: 10.5901/mjss.2016.v7n6p113

This study investigates how environmental, social, and governance (ESG) practices influence the financial sustainability of microfinance institutions (MFIs) worldwide. Drawing inspiration from Adam Smith's perspectives on moral sentiments and institutional cohesion, the research examines whether strategic integration of ESG dimensions can enhance the operational efficiency of MFIs. Using a global panel dataset of 966 MFIs across 97 countries between 2010 and 2018, the study adopts a two‐stage approach. In the first stage, financial efficiency is assessed using data envelopment analysis. In the second, truncated regression models evaluate the effects of ESG dimensions on financial outcomes, with MFIs' size tested as a moderating factor. The results indicate that ESG performance significantly enhances financial efficiency. Environmental and governance factors have stronger effects among larger institutions, while the social dimension shows more complex patterns. These findings highlight the importance of tailored ESG integration and offer practical insights for improving institutional resilience through responsible finance.