The mediating effect of credit management on the relationship between strategic planning and financial performance of Microfinance Institutions in Palestine. رسالة ماجستير

Abstract

This research is aimed to examine the mediating effect of credit management for strategic planning and financial performance of microfinance institutions in Palestine. The questionnaires were distributed randomly among 270 experienced employees in strategic planning and credit management. The path analysis was employed to test the research hypotheses. The result revealed that strategic planning dimensions have no significant effect on financial performance, while strategic planning has a vital positive effect on credit management. Moreover, credit management was demonstrated to fully mediate the linkage between strategic planning and financial performance. The current study proved the hypothesis that credit management played an important mediating role in the relationship between strategic planning and financial performance. Microfinance institutions have good strategic planning and effective credit policy that leads to better financial performance indicators. Therefore, microfinance institutions are recommended to design a proper strategy in line with their credit management practices and procedures that provide a strong risk assessment to save their financial resources. By doing this, the best financial performance would be achieved