Customers’ Perception of Microfinance Services as a Tool for Rural Development: A Romanian Case Study

Denisa Henegar, Garofița Loredana Ilieș, Iulia C. Mureșan, Andra Ramona Poruțiu (), Iulia Diana Arion and Felix H. Arion
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Denisa Henegar: Department of Economic Sciences, Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine, 400372 Cluj-Napoca, Romania
Garofița Loredana Ilieș: Department of Economic Sciences, Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine, 400372 Cluj-Napoca, Romania
Iulia C. Mureșan: Department of Economic Sciences, Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine, 400372 Cluj-Napoca, Romania
Andra Ramona Poruțiu: Department of Economic Sciences, Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine, 400372 Cluj-Napoca, Romania
Iulia Diana Arion: Department Forestry, Faculty of Silviculture and Cadaster, University of Agricultural Sciences and Veterinary Medicine, 400372 Cluj-Napoca, Romania
Felix H. Arion: Department of Economic Sciences, Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine, 400372 Cluj-Napoca, Romania

Agriculture, 2024, vol. 14, issue 7, 1-19

Abstract: Microfinance institutions (MFIs) play a vital role in extending financial services to marginalized and underprivileged populations worldwide. While the focus of MFIs has traditionally been on providing financial products, recent research highlights the importance of intangible factors in shaping their success and sustainability. This research examines the influence of factors such as trust, empathy, organizational culture, and reputation on MFI performance. A structured questionnaire was developed, and data were collected from 110 clients. Statistical analysis, including Cronbach alpha, composite reliability, and exploratory factor analysis, was employed to assess the reliability, validity, and dimensionality of the collected data. Three dimensions of service quality were identified: empathy and assurance, trust, and intangibles. While gender differences in perception were observed, they were not statistically significant. However, significant differences were noted across age groups, educational levels, and types of businesses. Understanding and addressing factors related to trust, intangibles, and specific aspects of service satisfaction are crucial for enhancing client engagement and long-term success. By continuously striving to improve service quality, microfinance companies can strengthen client relationships and position themselves in such a way as to achieve sustainable impact and success in the microfinance landscape.

Keywords: intangibles dimension; empathy and trust; social value creation (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
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