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This study aims to examine the role of Islamic microcredit programs based on the achievement of Maqasid Al-Shariah. Past studies have evaluated the role of microcredit programs using the conventional assessment approach. However, the conventional system of socioeconomic role assessment cannot evaluate the performance of Islamic microcredit in terms of achieving the objectives of Shariah for the Islamic microcredit model.

This paper uses primary data that were collected through a questionnaire survey distributed among 393 microcredit borrowers from Amanah Ikhtiar Malaysia (AIM). The survey was conducted from July 2013 to December 2013 in the State of Sabah and in Peninsular Malaysia. This research also analyzes the socioeconomic roles and the achievement of microcredit and microenterprise from the perspective of the five principles of Al-daruriyyat from Maqasid Al-Shariah.

Results indicate that the microcredit program of AIM has a positive and enhancing effect on the livelihood of clients. This effect is reflected in the assessment of their well-being, especially in the context of Maqasid Al-Shariah.

This study examines the role of Islamic microcredit based on the achievement of Maqasid Al-Shariah.

This study aims to evaluate the current practices conducted based on in-depth interviews with 16 Amanah Ikhtiar Malaysia (AIM) medium-level managers who were selected randomly, including branch managers and operational officers. All of the interviewees have two characteristics; they face customers directly and influence their decision-making.

Based on the findings of this study, AIM has a high level of customer orientation and inter-function coordination and a middle level in competitor orientation.

This paper initially presents the definition of a unique concept, namely, Islamic market orientation, which is defined based on the incorporation of Islamic concepts and market orientation by discussing the characteristics of Islamic market-oriented organisations. Then, an empirical discussion for evaluating market orientation in a microfinance provider is presented. The paper uses the synthesis of different real positions for developing discussions on whether AIM is following market orientation strategies, and, if so, at which level it is located from each dimension’s point of view.

Amanah Ikhtiar Malaysia (AIM) was established in 1987. The main objective of its establishment was to uplift households out of poverty through providing small loan to the rural poor. Most studies of AIM have concentrated only on the impact of this scheme on its members. They do not compare the conditions with non‐members within the same community. This paper attempts to analyse an economic and social impact of AIM in the selected areas in Kedah and Terengganu. The analysis will be based on the data collected in 1993, which comprise 100 respondents of which 60 respondents are members of AIM and the other 40 are non‐members and 20 non‐members and the other 50 respondents in Terengganu with the same composition. Since the data comprises of members and non‐members of AIM, the comparative analysis of economic and social impact is made possible. Aspects that will be emphasised include levels of income, expenditure, decision‐making process, empowerment for instant ownership of asset and saving, self‐esteem and health and participation in social, economic and political organisations.

The purpose of this study is to adopt quantile regression to investigate the impact of several factors on per capita income of participants of micro-financing scheme (Amanah Ikhtiar Malaysia [AIM]), who are mostly women at different point on the income distributions.

This study uses data collected from a survey on respondents who are the participants of AIM program using convenience sampling in Perak and Kelantan.

The empirical results show that the value of asset, value of loan, household size, ratio of spending to income and dummy state are consistently giving similar impacts on per capita income of participants at different quantiles.

However, age negatively and significantly affects per capita income only at middle and lower quantiles but not at higher quantile of per capita income.

The main aim of this paper is two‐fold: first, to discuss the role of micro‐finance institutions (MFIs) in promoting informal sector in Malaysia; second, to identify issues and policy measures on MFIs and the informal sector. The paper attempts to suggest that there is a strong need for having formal polices and institutions to service the informal sector and tap their potential for economic regeneration. This paper focuses on six micro‐finance programmes, namely, Amanah Ikhtiar Malaysia, Yayasan Usaha Maju, Koperasi Kredit Rakyat, Kooperasi Kredit Pekerja, Partners in Enterprise Malaysia and Projek TEKUN. This paper concludes by reviewing issues and challenges of MFIs.

Malaysia introduced its first micro‐financing programme in 1986 to replicate Grameen Bank's successful specialised delivery system, emphasising direct targeting, informality of delivery, and delivering credit to the “doorsteps” of the poor. Since then, micro‐finance programs (MFPs) have been part of the poverty alleviation policies and strategies. MFPs became a popular approach, especially to reach the poor who would normally be excluded from the formal credit sector. This paper evaluates the performance of three MFIs, namely Amanah Ikhtiar Malaysia (AIM), Yayasan Usaha Maju (YUM) and Koperasi Kredit Rakyat (KKR). The paper provides a micro‐finance capacity assessment to identify issues and constraints especially with respect to outreach, viability or sustainability, resource mobilisation, and policy environment.

Microfinance institutions (MFIs) provide credit to low-income beneficiaries, enabling them to gain access to financial assistance. To ensure that clients are protected, all MFIs should adhere to basic corporate governance principles to guarantee uniform standards, transparency and good corporate governance practices in their institutions. Hence, the purpose of this paper is to explore the client protection practices and sustainable performance of Amanah Ikhtiar Malaysia (AIM), a leading MFI in Malaysia.

Closed-ended questionnaires were distributed to managers and assistant managers at 76 AIM branches across the peninsular Malaysia. A response rate of 68 per cent was achieved from the total questionnaires distributed.

The result shows that the level of client protection in AIM is high. It shows that accountability and debt collection process have a significant influence on the level of sustainable performance of AIM, whereas transparency and transaction costs have an insignificant impact on the level of sustainability of AIM. Consistent with the agency theory and institutional theory, the result also implies that having better debt collection process policy and structure, and accountability among management will enhance the level of sustainability of AIM.

Previous studies focused on the single issue of sustainability in microfinance, such as on repayment performance among the poorest people whom AIM served as clients. However, studies on the accountability towards clients are still underdeveloped by researchers. Hence, the current study fills the gap by examining whether client protection affects the sustainability of AIM.

To understand how identification and commitment can be sustained among members of a development organization where high performance is of paramount importance and success has important human consequences. This study examined members' identification and commitment within a development organization patterned after the Grameen model. This organization is based on a set of values by which the members can work hard to overcome their situation caused by poverty.

Members of Amanah Ikhtiar Malaysia (AIM) were interviewed to analyze the characteristics that make AIM special, to gain a deeper understanding of the dynamics of members' interactions, and to explore how members influence and control one another.

The approach used in the study yields interesting insights into members' identification and commitment in a human development organization; and how this identification and commitment are linked to the members' success as well as the organization's success.

The insights to organizational identification and commitment should assist the field of management development to sustain and improve identification and commitment towards the organization and towards other organizational members. Female organizational members can also achieve economic success when they are given an opportunity in their rural villages.

This study applies western theories in a non‐western environment. The findings contribute to the conceptual understanding of the subject. Areas for future research were also suggested.

Without prejudice to the efficacy of other poverty alleviation mechanisms, micro-financing arguably enjoys relative prominence. However, notwithstanding the remarkable loan repayment rate that the microfinance firms report, they still face the challenge of sustainability. The paper aims to provide insights into how three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, affect the two aspects of the sustainability of microfinance institutions (MFIs; management and financial).

To achieve this goal, this study focuses on Amanah Ikhtiar Malaysia (AIM), a leading microfinance provider which is also the largest MFI in South East Asia. Data elicited via a survey questionnaire administered on 190 management staff of AIM across Malaysia are subjected to statistical analysis via the partial least square-structural equation modeling using SmartPLS 2.0.

The results provide empirical evidences that indicate that management sustainability is significantly influenced by customer orientation and inter-function coordination. However, only customer orientation affects the financial sustainability of AIM. Nevertheless, competitor orientation has non-significant effects on both aspects of sustainability of AIM.

The result of the paper contributes to the literature in understanding the long-term sustainable financial and social performance-based market orientation.

Findings are useful for policy makers, management of MFIs, practitioners and academics to enhance microfinance system. Managerial implications, limitation of the study and suggestions for future research are also included.

This paper aims to explore the specific causes of failure among Malaysian female entrepreneurs who were provided with financial services by the microfinance institution: Amanah Ikhtiar Malaysia (AIM) to start up their own businesses.

This paper adopts a qualitative-based case study design approach, with data collected from a total of 18 female entrepreneurs who had failed to develop their businesses. In-depth personal interviews were conducted, coupled with personal observation via purposive cum snowball sampling.

Thematic analysis revealed a pattern-based outcome which discloses a variety of causes affecting the failure of Malaysian female entrepreneurship. These causes ranged from inter-related external factors which were perceived as beyond their control, such as personal life events, intensive competition and loan inflexibility to internal causes, which were related to lack of resources, poor financial management and personal dissatisfaction with their own business performance.

The findings of this study provide valuable information for Malaysian economic policymakers in how to practically address the objectives of the National Women's Policy (NPW) and improve the innovative quality of their products and services. A thorough understanding of the specific obstacles facing female entrepreneurs in Malaysia is essential if policymakers are to improve opportunity exploitation efficiency and assist in mitigating the external and internal causes of business failure among Malaysian females.

Studies in this field have demonstrated that most new “start-ups” fail within three years of their establishment. While determinist, emotive and voluntarist theories can often provide an adequate explanation for the causes of business failure, it is clear that no single factor is usually responsible. Rather, multiple interrelated factors are found to be at play. This study, therefore, provides an integrative model for causes of business failure among small-business female entrepreneurs. It also represents one of only a few such studies in the literature and, to the best of knowledge at the time of writing, is the first such study that used an integrative approach to explain the causes of business failure in the Malaysian context.