The effects of financial knowledge, socialisation, attitude and skill on Malaysian SMEs’ performance

Abdul Razak, Dzuljastri and Amin, Hanudin (2020) The effects of financial knowledge, socialisation, attitude and skill on Malaysian SMEs’ performance. International Journal Of Industrial Management (IJIM), 8 (1). pp. 1-11. ISSN 2289-9286 E-ISSN 0127-564X

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Abstract

Though considered trivial, small and medium enterprises (SMEs) were one of the contributing factors for Malaysia economy growth. Besides providing employment, SMEs also provide an improved integration to ensure other businesses survive in the long run. Thus, the present study examined the contributing factors to explain SMEs' performance, be it high or negative. Drawing upon the financial literacy theory, this study proposed a model of factors to examine the effects of financial knowledge, socialisation, attitude and skill on the performance of SMEs industry in Malaysia. The model was examined using owners of the SMEs drawn from 413 respondents collected in West Malaysia. Our results suggested that the said indicators were instrumental in determining the performance, and attitude was also essential as a mediator as discovered in our PLS analyses. In practice, however, this study jacked up a new understanding of why SMEs' performance is of importance, and the survey approach in measuring the performance is nothing but important. Our findings provide an insight for owners of SMEs to manage their businesses, where financial socialization, financial attitude and financial skill are brought into play

Item Type:	Article (Journal)
Uncontrolled Keywords:	Financial knowledge, Financial Socialization, Financial Attitude, Financial Skill, Malaysia, SMES
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Dr Dzuljastri Abdul Razak
Date Deposited:	20 Apr 2021 09:52
Last Modified:	20 Apr 2021 09:52
URI:	http://irep.iium.edu.my/id/eprint/89413

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