Performance evaluation of microfinance institutions and local wisdom-based management concept

Abstract

This study aims to evaluate the performance of microfinance institutions and local wisdom-based management concept. Quantitative approach is used in this study. The data analysis technique used in this study are quantitative and qualitative data analyses, which include the stakeholders and key performance indicators (KPI). Analytical Hierarchy Process (AHP) technique is used to determine the quality, Objective Matrix is used for scoring, and Traffic Light System is used for grouping in colors. The results of the study show that not only strategies, processes, and capabilities influence on the Lembaga Perkreditan Desa (LPD) (village credit institution) of Depeha Village, but also the stakeholder’s satisfaction and contributions also influence the LPD. The strategy formulation is carried out by the LPD based on the stakeholders’ determinants of satisfaction and Catur Purusa Artha concept (a traditional philosophy for life by Balinese Hinduism which means four goals in human life).