Microfinance Institutions Performance Measurement: Introducing a New Performance Measurement Framework

Microfinance Institutions (MFIs) face unique challenges since it must achieve a double bottom line— outreach and sustainability. So is microfinance worthwhile or worthless? The proper performance measurement framework here is a better way to judge this than a simple measure of numbers. This paper seeks to present, to MFIs, a new rigorous performance measurement framework that incorporates the best of the frameworks and methodologies. We study a comprehensive literature review of over 150 articles to provide a thorough elucidation in the existing performance measurement framework and the performance criteria used to assess MFIs in achieving their goals. This paper introduce, to MFIs, a new multifaceted and integrated performance measurement framework that addresses the shortcoming of the existing frameworks, while satisfying the core criteria. Moreover, this study presented a new set of key characteristics -as core criteriaof performance measurement system that can help organizations identify an appropriate set of measures to assess their performance.