Governance and performance of microfinance institutions: a bibliometric and systematic literature review

Purpose Given the importance of governance in attaining outreach and financial sustainability of microfinance institutions (MFIs), the study comprehensively explores and synthesizes existing literature to clarify the complex relationship between governance and performance in the microfinance industry. Design/methodology/approach This study employed a bibliometric analysis and systematic literature review. Relevant articles were collected from Scopus and Web of Science, covering the period between 1999 and 2023. Following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses protocol, a total of 88 articles were systematically analyzed. Findings The study yielded several key findings. First, research on governance and dual performance in MFIs is predominantly concentrated in the Asian region. Second, the analysis revealed that determining the impact of governance on MFIs’ performance remains a challenge due to the variability associated with legal status, the diverse contexts studied, sample selection biases, varied methodologies and researchers' nuanced selection of indicators. Third, our review identified a significant number of indicators: 151 for governance, 51 for financial performance and 45 for social performance. Notably, most reviewed studies have paid little attention to the environmental aspect of performance. Finally, the study documented the absence of a single, unified theoretical framework capable of fully elucidating this complex association. Originality/value The article offers significant value by illuminating the key contributions of research on the nexus between governance and MFI performance. Furthermore, it critically assesses the limitations of previous studies and identifies promising avenues for future research in this domain.