IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v46y2022i2p259-285.html
   My bibliography  Save this article

Financial literacy, access to finance, SMEs performance and Islamic religiosity: evidence from Saudi Arabia

Author

Listed:
  • Raed Khamis Alharbi
  • Sofri Yahya
  • Veland Ramadani

Abstract

This paper seeks to explore the impact of access to finance and financial literacy on the SMEs performance in an Islamic context. The study adopted a cross-sectional research design by employing 255 SMEs in Saudi Arabia. The findings showed a positive mediating effect of access to finance on the relationship between financial awareness, financial attitude and SMEs performance while access to finance does not mediate the nexus between financial knowledge and SMEs performance. Subsequently, the findings revealed that access to finance have positive effect on SMEs performance. This study also found that access to finance increases the positive relationship between financial literacy and SMEs performance. The role of religiosity was found to positively increase access to finance towards affecting SMEs performance. The findings of this study provide SMEs with the knowledge to increase their religious practices to access government Islamic funds, i.e., Mudarabah and Musharakah while Islamic banking firms should increase their Islamic products and services to attract SMEs in Saudi Arabia.

Suggested Citation

  • Raed Khamis Alharbi & Sofri Yahya & Veland Ramadani, 2022. "Financial literacy, access to finance, SMEs performance and Islamic religiosity: evidence from Saudi Arabia," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 46(2), pages 259-285.
    • Handle: RePEc:ids:ijesbu:v:46:y:2022:i:2:p:259-285
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=124456
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijesbu:v:46:y:2022:i:2:p:259-285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.