Assessing the Performance Profiles of Microfinance Institutions: New Insights into the Management of Their Double Bottom-Line

MicrofinanceMicrofinance institutions (MFIs) deal with a double bottom lineMicrofinance institutions (Mfls) and often strive to maintain a balance. This paper investigates a network of MFIs that serves poor populations in rural Cameroon and explores the link between MFI performancePerformance and the network structureNetwork structure, by means of the contingency and fit theories and the Data Envelopment AnalysisData envelopment analysis (DEA) approach. By looking at the organizational designOrganizational design of the network and the double bottom-lineDouble bottom-line management issue of its MFIs, results show that the most performing efficient MFIs require less control from the network managementManagement team and are important contributors to the exploration of new solutions and services while dealing with a trade-offTrade-off regarding their social activity. On the contrary, MFIs that have recently launched their activity and need more supervision from network managersManagers greatly benefit from the exploitation of knowledge available within the network, while dealing with a trade-offTrade-off as regards their financial activity. Between those two extremes, MFIs are deploying their activity with a balanced double bottom line. Transitory imbalances can therefore be considered as opportunitiesOpportunity for exploration, by sustaining performancePerformance and fostering growth within the network, thus opening new insights into how observed trade-offsTrade-off between the financial and social activities of MFIs should be considered.