Social outreach model and efficiency in Sharia micro finance institution : literature review

Abstract

The aim of this research is to propose a model of social outreach in the Syariah Micro Finance Institution, which covers the Koperasi Syariah and Baitul Maal wa Tamwil in Indonesia. The data were taken from the financial reports, documentation, observation and field interviews. The research applies mixed empirical methods by combining two forms of quantitative and qualitative methodologies through the sequential explanatory strategy. The weight and the priority were given to quantitative data. The mixing of the data couldn’t be performed in each stage (partial), so we eliminated the methodologies in the partially mixed sequential dominant status design only. The efficiency calculation uses the input and output samples with the analysis instrument of Data Envelopment Analysis (DEA). Meanwhile, the inter-relationships between variables uses the multivariate analysis. The secondary data triangulation, interview and focus groups were expected to improve the credibility of the findings. The results from other studies (literature review) explain that there is a partial or simultaneous influence, there is a trade-off and also correlation between financial and social efficiency.