scholarly journals How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

2019 ◽  
Vol 11 (10) ◽  
pp. 2990 ◽  
Author(s):  
Jianmu Ye ◽  
KMMCB Kulathunga
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Financial Risk ◽  
Risk Attitude ◽  
Dual Process ◽  
Chief Financial Officers ◽  
Access To Finance ◽  
Positive Effects ◽  
Knowledge Based ◽  
The Impact

Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs’ financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs’ sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs’ sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.

scholarly journals How Does Suppliers’ Fairness Affect the Relationship Quality of Agricultural Product Supply Chains?

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Yuling Sun ◽  
Zehua Liu ◽  
Hui Yang
Keyword(s):  
Relationship Quality ◽  
Structural Equation ◽  
Procedural Fairness ◽  
Agricultural Product ◽  
Fairness Perception ◽  
Positive Effects ◽  
Distributive Fairness ◽  
Study Results ◽  
The Impact ◽  
The Relationship

Although many studies have suggested that the relationship between different supply chain members significantly affects agricultural product quality, suppliers’ perceptions of fairness, which greatly influence their decisions on building the relationship quality, are often overlooked. Particularly, the empirical evidence to investigate the impacts of suppliers’ fairness on the relationship quality and the factors that affect the suppliers’ fairness is missing, and therefore this knowledge gap needs to be filled by new research. Herein, we conducted a survey of 450 agricultural product suppliers and systemically analyzed the impact of antecedents on fairness perception and the impact of fairness perception on relationship quality. In addition, we developed a structural equation model and found that information sharing and price satisfaction had significantly positive effects on procedural fairness and distributive fairness, respectively. Furthermore, our studies demonstrated that procedural fairness is more important in improving the relationship quality than distributive fairness. However, supplier dependence is another important impact factor, and it greatly decreases the positive effects of suppliers’ fairness on relationship quality. In summary, the study results provide several managerial implications and extend our understanding of the importance of suppliers’ fairness in the relationship quality, which involves product development with respect to the supplier’s performance.

The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

scholarly journals HOW GREEN TRANSFORMATIONAL LEADERSHIP INFLUENCES SUSTAINABILITY? MEDIATING EFFECTS OF GREEN CREATIVITY AND GREEN PROCUREMENT

2021 ◽  
Vol 11 (4) ◽  
pp. 69-87 ◽  
Author(s):  
Ashok Kumar Shah ◽  
Yu Jintian ◽  
Dinesh Sukamani ◽  
Manita Kusi
Keyword(s):  
Transformational Leadership ◽  
Construction Industry ◽  
Structural Equation ◽  
Practical Implication ◽  
Green Building ◽  
Future Research ◽  
Green Procurement ◽  
Positive Effects ◽  
Project Team Member ◽  
The Impact

Research on environment management in construction industry is as topic of debate globally. Thus, this study examined how green transformational leadership played for green building sustainability via green creativity and green procurement. We developed an assimilated research model to examine the impact of green transformational leadership, green creativity and green procurement on sustainability in construction industry by accessing resources-based view theory and componential theory of creativity. The sample included from 305 project team member of construction firm in Nepal. Structural equation model (SEM) using SPSS 25.0 and AMOS 24.0 have been applied to find empirical results. The results revealed direct positive effects of green transformational leadership, green creativity and green procurement on sustainability. Green transformational leadership also appeared as predictor of green creativity and green procurement. Moreover, green creativity and green procurement found partial mediators of the relationship between green transformational leadership and sustainability in construction industry. Discussed future research direction along with theoretical implication and practical implication for environment policymakers and researcher attentive in promoting sustainability in construction industry.

scholarly journals An Empirical Analysis of the Impact of Agency Banking on Financial Inclusion in Benue State, Nigeria: Implications for Economic Activities

2022 ◽  
Vol 14 (2) ◽  
pp. 75
Author(s):  
David Terfa Akighir ◽  
Tyagher Margaret ◽  
Jacob Terungwa Tyagher ◽  
Tordue Emmanuel Kpoghul
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Survey Design ◽  
Secondary Data ◽  
The State ◽  
Financial Inclusion ◽  
Economic Activities ◽  
The Impact

Twelve (12) out of the Twenty-three (23) local government areas (LGAs) in Benue State do not have the presence of banks over a long period of time. This situation has deprived the inhabitants of these LGAs of access to formal financial services until the advent of agency banking. This study therefore, investigates the impact of agency banking on financial inclusion and economic activities in Benue State focusing on the agency banking activities of First Bank Ltd. The study is anchored on the agency theory and it used a survey design. The study has utilized both primary and secondary data that were analyzed using descriptive statistical tools and structural equation models. Findings of the study have revealed that agency banking activities of First Bank Ltd have immensely enhanced financial inclusion and economic activities in Benue State. However, challenges such as shortages of cash, security problems, network failures, and lack of financial literacy are militating against the smooth operations of the agency banking in the State. On the basis of these findings, the study has recommended among others that, other banks operating in the State should be encouraged to venture into agency banking in the state so as to have a wider coverage of agency banking in the State. Also, government should provide security and partner with the private sector to provide national carrier communication network system to overcome the network failure challenge. Finally, banks should intensify efforts to educate the masses about the validity and potency of agency banking.

HIGH-PERFORMANCE WORK SYSTEMS, ENTREPRENEURIAL ORIENTATION, AND INNOVATION STRATEGY IN DEVELOPING COUNTRIES

2021 ◽  
Author(s):  
MOHSEN SHAHRIARI ◽  
MARYAM MAHMOUDI-MESINEH
Keyword(s):  
Developing Countries ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
High Performance ◽  
Innovation Strategy ◽  
Work Systems ◽  
High Performance Work Systems ◽  
Knowledge Based ◽  
Statistical Sample ◽  
The Impact

Innovation strategy has become an important recent challenge in today’s competitive conditions of developing countries. In this paper, the impact of high-performance work systems (HPWSs) on innovation strategy of knowledge-based enterprises is examined, considering the mediating role of entrepreneurial orientation. The statistical sample of study includes 180 managers and employees of Iranian knowledge-based companies. Data were collected using standard questionnaire, and the structural equation method was used for data analysis. The results showed that HPWSs have a positive and significant impact on innovation strategy of knowledge-based companies and about 75% of the total effect of the HPWS on innovation strategy is explained indirectly by the mediating variable of entrepreneurial orientation.

Impact of environmental belief and nature-based destination image on ecotourism attitude

2020 ◽  
Vol 3 (4) ◽  
pp. 489-505
Author(s):  
Chi Nguyen Thi Khanh ◽  
Le Thai Phong
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Time Perspective ◽  
Reliability And Validity ◽  
Destination Image ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

PurposeThis study examines the direct and indirect impact of environmental belief, nature-based destination image and time perspective on tourist attitude towards ecotourism.Design/methodology/approachData was collected through a structured questionnaire survey conducted in Vietnam. The dataset consists of 479 valid responses by Vietnamese tourists. Correlation analysis and structural equation modeling (SEM) were used to test the causal relationships among time perspective, environmental belief, nature-based destination and ecotourism attitude. Confirmatory factor analysis (CFA) is conducted to verify the reliability and validity of each latent construct, and to evaluate the discriminant validity, convergent validity, composition reliability and average variance extracted (AVE) for the latent constructs.FindingsThis study finds statistically significant and positive effects of time perspective, environmental belief and nature-based destination image on ecotourism attitude. The results also indicate that environmental belief is found to have statistically significant effects both direct and indirect on ecotourism attitude; its indirect effect is transmitted through nature-based destination image. Our findings demonstrate empirically that tourists are mainly attracted by natural environment sites and that tourists having environmental beliefs are likely to engage in ecotourism than other types of tourism by first influencing their attitude.Research limitations/implicationsOne limitation is associated with our measurement method, which relies on respondents’ self-ratings of their activities. Second, our study is based on internal consistency assessments for establishing construct reliability and validity, which might be the problem of measurement misspecification in tourism research and hinder us to adequately capture the dynamic nature of the variables and the underlying relationships. Third, the survey is conducted in one specific ecotourism nation like Vietnam, and thus, the findings must also be explained in this case.Practical implicationsPolicymakers need to pay careful attention to the planning and conservation of local resources, as well as infrastructure, for ecotourism development. Moreover, the management of eco-site needs to maintain ecology properly, provide an authentic ecotourism experience to improve ecotourism destination. Otherwise, ecotourism operators should focus on marketing strategies to increase traditional and natural values and promote eco-friendly social standards for fostering demand.Originality/valueThis study examines an integrated model analyzing the impact of time perspective, environmental belief and nature-based destination on tourist attitude towards ecotourism. This study reveals the understanding of how individuals’ view towards belief in environment and location image, influences their attitude to engage in ecotourism. The study provides several implications for practice.

scholarly journals SME Managers and Financial Literacy; Does Financial Literacy Really Matter?

2018 ◽  
Vol 8 (3) ◽  
pp. 353
Author(s):  
Shamim Akhtar ◽  
Yanping Liu
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Service Providers ◽  
Business Owners ◽  
Financial Knowledge ◽  
Equation Modeling ◽  
Financial Awareness ◽  
Performance Results ◽  
The Impact ◽  
Firm Owners

The purpose of this study is to examine the level of small and medium (SMEs) business owners-managers’ financial literacy and its effect on the firm’s performance. The study applied random sample and structural equation modeling approaches in measuring the impact of SME firm owners-managers’ level of financial literacy in the context of Pakistan. The findings reveal the complete influence of firm owners- manager’s financial attitude, financial knowledge and financial awareness in adapting financial literacy to upsurge in firm performance. Results indicate that financial awareness and financial knowledge of SME managers are evidently not a precondition to SMEs performance, yet entrepreneur tactics in making decisions and association to financial attitude have a contrast with financial literacy. Findings would be valuable for the SME owners, investors and service providers.

Role of gender and corporate risk taking

2020 ◽  
Vol 20 (3) ◽  
pp. 383-399 ◽  
Author(s):  
Dene Hurley ◽  
Amod Choudhary
Keyword(s):  
Panel Data ◽  
Risk Taking ◽  
Financial Risk ◽  
Chief Financial Officers ◽  
Board Members ◽  
Content Type ◽  
Equity Ratio ◽  
Glass Cliff ◽  
The Impact

Purpose The purpose of this study is to examine the role of chief financial officers’ (CFOs’) gender in financial risk taking of 58 US companies along with the impact of having women board members. Design/methodology/approach Using a panel data of 58 selected S&P 500 companies during the period 2012-2016, this paper determines whether the gender of CFOs and having women board members play a role in risk-taking behavior of firms. Findings Firms led by female CFOs are smaller in size with lower net income and net revenue. The panel data analysis shows that the impact of female CFOs on firms’ financial risk is mixed, depending on risk measures used, whereas increasing female board members reduces that risk. Research limitations/implications The data used is limited to 58 S&P 500 companies, and two of the three risk-taking measures used in the study, specifically investment in property, plant and equipment (PPE) and debt/equity ratio, may not be applicable to some industries. Practical implications The findings provide mixed evidence of risk aversion by females in executive and leadership positions, depending on the measures used and the management responsibilities they undertake (CFO versus board member) with support for the glass cliff phenomenon in which females may be leading financially precarious organizations. Social implications Female CFOs are found to be leading relatively smaller and financially poor-performing firms compared with the male CFO-led firms, thereby giving support to the glass cliff arguments. Originality/value The paper examines the role of CFOs’ gender and board diversity in risk taking as measured by the investment in PPE, debt/equity ratio and stock return volatility.

Evaluating the impact of hedonism on investment choices in India

2019 ◽  
Vol 45 (12) ◽  
pp. 1526-1541 ◽  
Author(s):  
Harish Kumar Singla ◽  
Amit Hiray
Keyword(s):  
Stock Market ◽  
Financial Literacy ◽  
Structural Equation ◽  
Measurement Model ◽  
Equation Model ◽  
Social Recognition ◽  
Fixed Income ◽  
Content Type ◽  
The Impact ◽  
Investment Choices

Purpose The purpose of this paper is to find the effect of the hedonism value on the investment preference in India. Design/methodology/approach Based on the literature review, a measurement model is developed to measure hedonism. Further, the effect of hedonism on investment choices of an individual and the impact of age, gender and income level on investment choices and on hedonism are also measured through a structural equation model (SEM). Findings The study finds that the measurement model is reliable, and all five items, that is an exciting life, happiness, pleasure, social recognition and a comfortable life, are an appropriate measure of hedonism. The study finds that hedonists prefer to invest in stock market-related instruments and real estate. The study also ascertains that age and income affect the hedonism value negatively. The findings also indicate that women prefer to invest in fixed income instruments and men prefer to invest in stock market-related instruments. As people grow in age, they prefer to invest in fixed-income instruments and gold as a hedge, thus avoiding risky investments. Research limitations/implications The study does not include education and financial literacy of individuals in the model, rather controls these factors by selecting a sample where the minimum educational qualification of the respondent is graduation. Practical implications It is assumed that the values that drive an individual have the potential to influence his/her investment choices. Therefore, the study advises the firms offering investment services to their clients to ensure that apart from studying the demographic and risk profile of individuals, they also assess their value system. This can help them target their customers more precisely and serve them better. Originality/value The study is perhaps the first attempt to find the effect of personal values (specifically hedonism) on investment choices made by individuals, through the development of an SEM.

scholarly journals Impact of Upgrade Programmes on the Competitiveness: Case of the Algerian Companies

2020 ◽  
Vol 34 (1) ◽  
pp. 201-223
Author(s):  
Souhila Ghomari
Keyword(s):  
Structural Equation ◽  
Positive Impact ◽  
Production Capacity ◽  
Main Hypothesis ◽  
Positive Effects ◽  
Innovation Cost ◽  
Restructuring Process ◽  
And Control ◽  
The Impact ◽  
A Company

Abstract Faced to a socio-economic environment that is marked by globalization of trade and competitiveness, Algeria is committed, like its neighbours, to do upgrade programmes which aim to support the dynamic of restructuring process, the industrial integration and growth. The strategic goal is to upgrade to the requirements of the free trade to take advantage of the positive effects of liberalization and strengthen the production capacity, sales and export. This general target will lead the Algerian companies to achieve two ambitions: to become competitive in price / quality, innovation, and to be able to survive and control the evolution of the technology and the markets. Achieving these ambitions requests from the Algerian companies a major effort, i.e., to adapt and change their organisational methods and practices, especially in technology, innovation, cost control and quality supervision, training, products and markets, sales policies, management, openness to technical and commercial partners. The present paper describes the impact of upgrade programmes on the competitiveness of Algerian companies. For this reason, a model has been developed that analyses the competitiveness of a company across several dimensions (commercial, financial, technical, human, as well as social & managerial). To process the data collected in the survey, an exploratory factor analysis, confirmatory analysis and structural equation methods have been used. The results of the research have confirmed the main hypothesis that upgrading has a positive impact on the overall competitiveness of companies that have initiated and finalised an upgrade programme.

Sign in / Sign up

Export Citation Format

Share Document