Assessing internal processes of a community-based microfinance model to alleviate extreme poverty in society

Khalequzzaman, Mohammad and Ab Rahman, Asmak and Kamsin, Amirrudin (2025) Assessing internal processes of a community-based microfinance model to alleviate extreme poverty in society. Asia-Pacific Management Accounting Journal (APMAJ), 20 (2): 7. pp. 191-224. ISSN 2550-1631

Official URL: https://apmaj.uitm.edu.my/

Abstract

The Sharīʿah-based and Information and Communication Technology (ICT)-driven Microfinance Model (SIMM) represents a community-oriented initiative designed to combat severe poverty within society. A notable limitation of existing microfinance institutions (MFIs) is their inability to incorporate extremely impoverished individuals into their client base. This longitudinal study employed a quantitative methodology to assess the internal processes of SIMM through a pilot study involving 421 rural households in Kalainagar village, Bangladesh. The evaluation of SIMM’s internal processes was grounded in five critical factors: microfinance model (MFM), ICT utilization, investment values (IV), entrepreneurial values (EV), and business values (BV). To explore the interrelationships among these factors, Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed. The findings revealed significant and positive relationships among the constructs. Additionally, a robustness test was conducted to further substantiate the internal processes of SIMM. As a community-based microfinance model, SIMM exhibits substantial potential for alleviating extreme poverty in rural communities.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Khalequzzaman, Mohammad
UNSPECIFIED
Ab Rahman, Asmak
asmak@um.edu.my
Kamsin, Amirrudin
UNSPECIFIED
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > Microfinance
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
UiTM Journal Collections: UiTM Journals > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 20
Number: 2
Page Range: pp. 191-224
Keywords: Microfinance model, Performance evaluation, Poverty alleviation, Religious studies, Longitudinal study
Date: August 2025
URI: https://ir.uitm.edu.my/id/eprint/122499
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