Toward Better Resilience during the War Crisis; Case Study of Three Microfinance Institutions in Yemen

Abstract

As a crisis, man-made or natural disaster, strikes, business management struggles to maintain business, and business sustainability. The management takes different approaches to keep business running during turbulent times such as proactive approach and ad hoc approach. Organizations proactively prepare plans to face predictable changes; however, sometimes the unpredictable changes become very complicated and challenging that would negatively affect these organizations and their business continuity. As a result, it is very crucial for any organization to be well prepared to keep its business running during turbulent times. Currently, there is a major war going on in Yemen since 2015 that negatively affects most of the business sectors in Yemen. Microfinance sector is considered as a very important sector in the country. It is one of the sectors that is affected and hit hard by the ongoing conflict. Thus, the Social Fund for Development, which is the main microfinance industry leader in the country, sought solutions. The researchers conducted a qualitative study on three microfinance pioneers in Yemen and interviewed 11 professionals from all different management levels. The study found that the operations of the studied institutions have been interrupted by four turbulences, and challenged by three market changes which drove these Microfinance Institutions, MFIs, to adapt their strategies and practices.