Antecedents of market orientation in the microfinance industry of Pakistan

Abstract

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.