Microfinance Institutions’ Performance in Tanzania: Social Media Marketing Strategy Perspective

Abstract

This research investigated the performance of microfinance institutions (MFIs) with the focus of social media marketing as the predictor of the performance. The research was carried out in Dodoma City whereas a cross-sectional research design with involvement of 84 staff selected proportionately from MFIs’ strata was employed. Key informants were managers of the MFIs who were purposively selected. Data were collected using questionnaire and interviews. Analysis of qualitative data was undertaken by using adopting content analysis. Regarding quantitative data, application of descriptive statistics in form of percent, frequency and cases of occurrence in multiple responses fashion was carried out that was followed by further econometric analysis using and logit model to determine the performance of MFIs as contributed by social media as marketing strategies. The results indicated that WhatsApp, Instagram, Twitter and Facebook statistically were significant (p < 0.05) with positive relationship with increase in sales. The conclusion made from this research is that social media as marketing strategies positively influence the performance of MFIs. Serious investment in the usage of social media in marketing MFIs and their activities should be maximized for optimal performance.

Keywords

• microfinance institutions
• performance
• social media
• social media marketing
• tanzania