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This is a Structural Equation Modeling (SEM) study.

September 10, 2025HABITATOpen Access

Social Capital on The Performance of Microfinance Institutions of Agribusiness (MFI) in Indonesia

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Analysis reveals social capital enhances microfinance institutions' performance in Padang, indicating trust and networks are key factors.

Social capital positively influences microfinance institutions' performance in Padang City.
Trust, norms, and networks are significant components of social capital that enhance MFI services and management.
Structural Equation Modeling (SEM) was employed to analyze the relationship between social capital and MFI performance.
Findings highlight the importance of social capital in alleviating bad loans and improving credit supervision in MFIs.

Analia et al. (2025) studied this question.

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