How Does Technological and Financial Literacy Influence SME Performance: Mediating Role of ERM Practices

Kulathunga, K.M.M.C.B.; Ye, Jianmu; Sharma, Saurabh; Weerathunga, P.R.

doi:10.3390/info11060297

Cited by 85 publications

(80 citation statements)

References 86 publications

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“…The outcome shows the regression model, with four independent variables, where budgeting and access to finance have the largest absolute value at 0.425 and 0.373 respectively, which indicates a unique account for the largest proportion of the variance in the regression model. The significant effect of financial awareness on financial sustainability is in line with the findings of a study by Usama and Yusoff (2018), which observed that financial awareness had a clear and great effect on the financial sustainability of Nigerian SMEs, and a study by Kulathunga et al (2020) which also noticed that financial awareness had a significant influence on the performance of SMEs. The results of this study are therefore consistent with those of Usama and Yusoff (2019) who have defined financial awareness as an essential component of the intellectual capital of organisations and have concluded that intellectual capital has had a major impact on the financial sustainability of SMEs.…”

Section: Figure 3: Age Groupsupporting

confidence: 87%

Factors Affecting Small and Medium Enterprises’ Financial Sustainability in South Africa

Olarewaju

Msomi

2021

AJIMS

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The dwindling growth of small businesses and their rate of failure in South Africa has been traced to poor financing. Thus, the factors affecting the financial sustainability of small and medium-sized enterprises in South Africa are examined in this study. Using purposive sampling, data were collected from 310 respondents, however six were incorrectly completed. The analysis was based on data collected from 304 respondents which cut across owners and/or managers from small and medium construction, manufacturing, retail, and agricultural enterprises. A quantitative research design that falls under the positivist paradigm was used. Specifically, through a descriptive and multivariate regression analysis, it was found that financial awareness, budgeting, accounting skills, and access to finance have positive and significant effects on the financial sustainability of SMEs with all the variables, having 0.005 probability values, respectively. Out of all the variables examined, budgeting and access to finance have the largest absolute values of 0.425 and 0.373, respectively. Thus, it was concluded that workshops, training, and seminars to improve the financial literacy of small and medium enterprises should be organised. This will improve owner’s ability to deploy the accounting and budgeting skills and they will be exposed to meeting loan criteria and conditions from financial institutions. Also, adequate funds should be allocated to cater for the regular training and development of small business owners using the services of financial experts.

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Section: Figure 3: Age Groupsupporting

confidence: 87%

Factors Affecting Small and Medium Enterprises’ Financial Sustainability in South Africa

Olarewaju

Msomi

2021

AJIMS

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“…[96] also evidenced the mediating role of SM in the context of online service failures and recovery strategy in SMEs. In addition, [98] strengthen the mediating role of SM motives between trait emotional intelligence and problematic SM use among students at a Turkish State Uni-versity. Similarly, Olanrewaju et al (2020) [34] suggested the mediating role of SM adoption between TOE constructs and SME performance, while [99] recommended a segmentation approach to develop a hypothesis for mediation testing.…”

Section: Mediating Role Of Social Media Adoptionmentioning

confidence: 61%

“…Primary respondents targeted were owners, managers, and CEOs, as they were judged to be the most knowledgeable about their company environments and performance [96,97]. Following the proposed global industry classification standard, the targeted SMEs operated as follows: consumer discretionary, consumer staples, information technology, financials, and communication services [98].…”

Section: Sampling and Data Collectionmentioning

confidence: 99%

Examining the Factors Affecting SME Performance: The Mediating Role of Social Media Adoption

et al. 2020

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Small and medium enterprises (SMEs) have become a vibrant and dynamic sector of the world economy. Information technology plays a vital role in improving the productivity and competitiveness of SMEs. The dynamic business environment has brought fierce competition among SMEs and, therefore, requires the owners to interact with internal and external members actively. Hence, this study aims to investigate the impact of technology, organization, and environment as important factors in the performance of small and medium-sized enterprises. It also examines the mediating role of social media adoption. Items were developed to measure the various purposes of social media use in organizations, which contribute to increasing the measurement of social media usage. For the empirical investigation, this paper used a closed-ended questionnaire. Using a quantitative method, we observed 423 responses through structural equation modeling. The findings of the study indicate that technology, organization, and the environment play effective roles for SME performance. More importantly, social media adoption positively mediates the relationship between technology, organization, environment, and SME performance. The study also helps organizations realize the advantages of using social media and specifies the rationale behind an organization’s investment in social media.

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“…The mediation role of financial literation in ensuring MSMEs sustainability: An organizational characteristics perspective by Arik Prasetya, Kusdi Rahardjo, Mukhammad Kholid Mawardi, Raden Rustam Hidayat, Yudha Prakasa of internal firm capability that can complement access to finance to achieve superior growth outcomes." Organizations that are rapidly using new technologies to create collaborative work and knowledge-sharing culture can uplift their organizational performance in an efficient way (Kulathunga et al, 2020). Besides, Brown et al (2017) added that cultural differences prove to be significant financial literacy predictors between students with different languages and socio-economic backgrounds.…”

Section: Sustainability In the Msmes Sectormentioning

confidence: 99%

The mediation role of financial literation in ensuring MSMEs sustainability: An organizational characteristics perspective

Prasеtya

Rahardjo

Mawardi

et al. 2021

JEMA

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The Micro, Small, and Medium Enterprise (MSMEs) sector has been recognized as an essential contributor to the economic development of Indonesia. However, the sustainability of MSMEs in Indonesia is still relatively low compared to the rest of ASEAN countries with similar levels of economic growth. This study aims to extend previous studies on the relationship between MSMEs characteristics and their sustainability by specifically including financial literation as a mediation role. This study used proportional random sampling as a sampling technique. A total of 191 MSMEs owner-managers questionnaire data were processed by using Partial Least Square analysis. This study confirmed the positive influence of MSMEs characteristics on financial literacy and financial literacy on the sustainability of MSMEs. Moreover, financial literation proves to be a significant mediator of MSMEs sustainability. This study suggests that MSMEs owner-managers need to be financially literate as it can enable them to make a good financial decision that can ensure their business sustainability.

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How Does Technological and Financial Literacy Influence SME Performance: Mediating Role of ERM Practices

Cited by 85 publications

References 86 publications

Factors Affecting Small and Medium Enterprises’ Financial Sustainability in South Africa

Factors Affecting Small and Medium Enterprises’ Financial Sustainability in South Africa

Examining the Factors Affecting SME Performance: The Mediating Role of Social Media Adoption

The mediation role of financial literation in ensuring MSMEs sustainability: An organizational characteristics perspective

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