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Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy

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  • Claude Bernard Lontchi

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

  • Baochen Yang

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

  • Kabir Musa Shuaib

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

Abstract

The paper examines the mediating effect of financial literacy on fintech and SMEs’ performance during COVID-19 recovery in Cameroon. The study collects 381 survey data from SMEs in Yaoundé and Douala, the country’s business hub, to determine how these financial technology innovations affect SMEs’ business performance. Similarly, the PLS-SEM model was used to test the proposed hypotheses. The study results show that the relationship between fintech and financial literacy was positive and significant. The findings also reveal that fintech has a positive and significant effect on SMEs performance. In addition, the results further indicate that financial literacy positively and significantly mediates the relationship between fintech services and the performance of SMEs. Therefore, the study concludes that financial literacy is an essential mechanism through which fintech services influence SMEs’ operational and financial performance in Cameroon. The study has provided a better understanding of how SMEs can improve their performance by leveraging fintech solutions through financial literacy.

Suggested Citation

  • Claude Bernard Lontchi & Baochen Yang & Kabir Musa Shuaib, 2023. "Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2171-:d:1045518
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    References listed on IDEAS

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    1. Prince Hikouatcha & Alain Gilles Tagne Foka & Armand Depesquidoux Fossi & Simplice A Asongu, 2024. "Empirical investigation of the Fintech and financial literacy nexus: Small business managers’ insights in Cameroon," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 16(2), pages 219-237, February.
    2. Chengkai Zhang & Yanjun Zhang & Yu Li & Shan Li, 2023. "Coupling Coordination between Fintech and Digital Villages: Mechanism, Spatiotemporal Evolution and Driving Factors—An Empirical Study Based on China," Sustainability, MDPI, vol. 15(10), pages 1-26, May.
    3. Florentina Kurniasari & Elissa Dwi Lestari & Hendy Tannady, 2023. "Pursuing Long-Term Business Performance: Investigating the Effects of Financial and Technological Factors on Digital Adoption to Leverage SME Performance and Business Sustainability—Evidence from Indo," Sustainability, MDPI, vol. 15(16), pages 1-20, August.

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