LAUSR

Purpose The special importance of microfinance institutions (MFIs) in the context of emerging economies is well acknowledged. The success of MFIs is country, culture and context-specific. This study aims to capture the organizational sustainability viewpoint of MFIs through the experiences and insights of the managers engaged in running MFIs in an emerging market. Design/methodology/approach The study follows a qualitative approach and collects primary data through insightful interactions with the senior managers of various Indian MFIs, followed by thematic analysis to identify the factors impacting the sustainability of MFIs. It is supplemented by an extensive systematic literature review to enrich the findings. The identified factors are then analyzed through the lens of a balanced scorecard (BSC) approach to developing a framework in assessing the performance of MFIs operating in similar to this study’s context. Findings The authors observe that the majority of the studies on MFI sustainability are financial outcome centric. This study adds value by exploring a holistic and organization-centric approach drawing support from stakeholder theory, which emphasizes that the shareholders, employees and customers are equally important for the sustainability of the MFIs. Research limitations/implications While the identified sustainability factors would help the practitioners focus upon the factors of improvement, the BSC framework would facilitate the conduct of performance review and taking related decisions thereon for the sustainability of MFIs. Originality/value To the best of the authors’ knowledge, this study is the first of its kind to attempt to assess the MFI organizations striving for sustainability through the lens of BSC framework.